Income and Accumulation variants of the same fund

Porcupine

Thanks. So they're in no worse position than a UK dividend? I was worried that they would be counted as generic 'income' (taxed 20%) rather than 'dividend' (taxed 10%). (Assuming the 'foreign' end hasn't taken tax off)

grizzly1911

bowlhead99 wrote: »

Well, some fund houses don't reinvest dividends for free.

If I'm making regular contributions into an account and buying a variety of funds each month, then if I have £9.74 of extra cash available one month due to periodic dividends received on a £500 investment I own, I can just add it into whatever I'm buying that month.

If I wasn't doing regular investments and my fund platform charges £9.99 per transaction, or they have zero transaction fees but a minimum deal size of £10 or £50 or £500, the £9.74 is just going to sit useless in my account.

So really if you don't want redundant uninvested cash in your account and you're not going to be periodically buying and selling to allow you to sweep the spare cash up into another trade, you should probably just be using the ACC version of your fund.

Confused.

Cavendish appear to offer an automatic reinvestment , back into the same fund for free.

Previous ISAs I have direct with the company have been reinvested for "free" (maybe a spread).

I have recently done a lot of consolidation and have opted for accumulation units thus far.

I now want to go outside an ISA and was looking at going for income units just to help tax computations.:(