Investing over long term - Why?

sparkychris

I have also, as a total novice, been thinking of drip feeding into the vangaurd LS 80 for long term investment but when I search for it on my youinvest app there is an acc and an inc option. What's the difference?

badger09

sparkychris wrote: »

I have also, as a total novice, been thinking of drip feeding into the vangaurd LS 80 for long term investment but when I search for it on my youinvest app there is an acc and an inc option. What's the difference?

Acc means the dividends (and interest) are automatically reinvested, so the value of the units goes up

Inc means the income (dividends and interest) is paid out to you on a regular basis and you can decide what to do with it - reinvest/invest in something else/withdraw and spend it. If you decide to reinvest, then you may incur additional charges.

Just realised - the answer to your question is in jamesd's post immediately above yours

Mistermeaner

You want acc for accumulation, it means and dividend payouts are automatically reinvested into the fund

Inc for income means you receive them as cash to do with as you please

As you say you are in for the long term i would suggest acc to get maximum benefit of compounding etc

sparkychris

God, that seems so obvious! Thank you, both!
As I can't work out how to set it up online, I will be phoning on Monday to set it up.
All rather exciting!
Just need my shrewdly acquired tesco shares to start rising and I'll be well on my way!

Mistermeaner

Mmmmmmm

Goodluck with tesco, they are cheap for a very good reason. Their name does not automatically qualify them torecover in full and their problems run far deeper than a bit of book cooking.

sparkychris

Luck is what I'm counting on!
I didn't bet my house though... Just a punt.