Who is taking a punt on CF Woodford fund?

pip895

dale_cotterill wrote: »

With a Large Portfolio you probably wouldn't be using either.

Unless like me you trade funds frequently

planteria

dale_cotterill wrote: »

With a Large Portfolio you probably wouldn't be using either.

....because you would probably be using......:question:

melbury

Sorry in advance if this is a stupid question, but here goes....

If I invest £2000 into this new fund, will I effectively have 2000 shares (or is it units in this type of thing)?

As previously mentioned, I usually tend to put money into investment trusts and so am not sure how a unit trust works.

As with an investment trust, is the dividend income based on the number of shares/units you hold?

Many thanks in advance for any advice on this.

talexuser

planteria wrote: »

....because you would probably be using......:question:

Presumably a fixed price service rather than % based, as long as all your other costs (eg transaction) are covered? Large enough you can negotiate your own deal, larger still pay no service fees at all

Bazofts_Revenge

I've just done a Bed and ISA on 2 large share holdings. Man Group have been one hell of a roller coaster upon which I've enjoyed some good dividends and at times I had made some big losses on paper. Buying again at a lower price meant I had a couple of hundred profit. Moving it into my ISA I have cut my holding by 50% and put the rest into Woodfords Fund and will hope for a smoother ride.

le_loup

melbury wrote: »

If I invest £2000 into this new fund, will I effectively have 2000 shares (or is it units in this type of thing)?

Yes 2,000 units if you invest in the run up period.

melbury wrote: »

As with an investment trust, is the dividend income based on the number of shares/units you hold?

Yes, that's the way it works.

But, unlike shares there is no benefit from investing before day one* ... your £2,000 will buy £2,000s worth on whatever date you invest.


*Unless you are slightly OCD and like round numbers!

dale_cotterill

talexuser wrote: »

Presumably a fixed price service rather than % based, as long as all your other costs (eg transaction) are covered? Large enough you can negotiate your own deal, larger still pay no service fees at all

Precisely my point :-)

melbury

le_loup wrote: »

Yes 2,000 units if you invest in the run up period.

Yes, that's the way it works.

But, unlike shares there is no benefit from investing before day one* ... your £2,000 will buy £2,000s worth on whatever date you invest.


*Unless you are slightly OCD and like round numbers!

But if I leave investing until later and the price goes up then my £2,000 won't buy the 2000 shares that I would get now - or am I misunderstanding completely?:o

le_loup

Read this comment by bowlhead99:


http://forums.moneysavingexpert.com/showpost.php?p=65731990&postcount=5


on the same subject, he is so much more eloquent than I and an infinitely better typist.


And this comment from Justin Modray from the Candid Money website:
What’s the fixed price offer period?

Little more than a marketing ploy.
A fixed price offer period runs from 2 June to 18 June with units costing £1. However, this is an open ended fund, not a share or investment trust, so the offer period is rather pointless.
If you give a platform your money during the offer period, they’ll keep it in cash (and earn some interest themselves meanwhile) and then buy units when the fund launches on 19 June. Funds like this are only priced once a day and when you invest you get units at the next price point, so if you buy on the morning of 19 June you’ll still pay £1 for units.
So inferring that there is some benefit from committing your money in advance to secure a fixed price is misleading. It’s not like the Royal Mail share issue where the investment can shoot to a premium on launch – funds just don’t work like that.

lejog2003

planteria wrote: »

....because you would probably be using......:question:

.... Snowman's excellent spreadsheet to work out which platform is cheaper for me rather than wasting time posting simplified accounts of my own position on t'internet.

(Not you planteria - the previous posters )