Basic question on dividend reinvestments with ITs

darkvader

Hi,

I've seen a few threads on here about charges for div reinvestments with platforms but not a lot about going to the ITs direct.

If things go as planned, we plan to open Share plans with Baillie G and Aberdeen to drip feed about £200 each into their funds. I'd like to know if income from these ITs are reinvested without charge so I can basically get the income and reinvest for additional shares or, similar to platforms, there are hefty charges for div reinvestment?

Also, its not clear to me if these ITs have a growth option (so no divis are paid out) available but I know its not available as these are essentially listed companies where you purchase shares

Thanks
DV

Thrugelmir

Charges are normally very low around 0.20% plus stamp duty.

So 70p to buy a £100 of shares.

darkvader

Thrugelmir wrote: »

Charges are normally very low around 0.20% plus stamp duty.

So 70p to buy a £100 of shares.

Sorry but is this for dividend reinvestment or share purchase up front? I believe you are stating the price of 0.2% plus stamp duty when to comes to reinvesting the dividend? If so, 70p for £100 does not add up as divis can be quite minimal initially so how do they charge for reinvesting about £50 worth?

Cheers
DV

Thrugelmir

F&C levy the same charges on dividend reinvestment as initial purchase.

Just looked at my ISA that's with F&C. Cost me 34p (25p stamp and 9p dealing) to reinvest a dividend of £49.47p.