Need dividend paying investments

melbury

I have about £10K sitting in the Virgin index tracker fund (PEP), which I haven't added to for years now.

Could really do with putting that money into something that would generate a bit of income.

Thinking about dividend paying investment trusts - primarily City of London and Merchants Trust.

My questions are:

1. Is it fairly straightforward to withdraw money from a tracker fund?

2. What is the best way of going about buying shares in an investment trust? I have always had a preference for paper share certificates, but this seems to be very expensive now. However, I don't want to have to pay a monthly/annual fee to a company for holding the shares on my behalf.

Thanks for any advice.

TCA

Which index is your Virgin PEP tracking? You're probably already getting dividends, they're just reinvested for you.

You should be able to close it and get the funds sent to you easily enough.

There are platforms through which you can buy investment trusts and hold them free of charge, via an ISA or normal trading account.

melbury

TCA wrote: »

Which index is your Virgin PEP tracking? You're probably already getting dividends, they're just reinvested for you.

You should be able to close it and get the funds sent to you easily enough.

There are platforms through which you can buy investment trusts and hold them free of charge, via an ISA or normal trading account.

Isn't it better to actually try and get a paper certificate though, especially if you are aiming to keep the shares for years?

Have to admit, I have only ever bought shares, never sold any:o

CLAPTON

melbury wrote: »

Isn't it better to actually try and get a paper certificate though, especially if you are aiming to keep the shares for years?

Have to admit, I have only ever bought shares, never sold any:o

if you have only 10k in S&S then it is unwise to buy a single share : just think the best most solid income shares were the banks and BP etc

presumably you are a basis rate taxpayer so holding the shares in an ISA isn't advantageous?

melbury

CLAPTON wrote: »

if you have only 10k in S&S then it is unwise to buy a single share : just think the best most solid income shares were the banks and BP etc

presumably you are a basis rate taxpayer so holding the shares in an ISA isn't advantageous?

No I only have £10K in the Virgin index tracker fund. I do have others - some individual companies and some other funds - not mega I hasten to add.

masonic

melbury wrote: »

Isn't it better to actually try and get a paper certificate though, especially if you are aiming to keep the shares for years?

Have to admit, I have only ever bought shares, never sold any:o

No need to do so to reduce costs. Discount sharedealing platforms like X-O, SVS Securities and iWeb will allow you to trade for £5-6 and have no ongoing charges. Very cost effective for a portfolio of investment trusts and you have the option to invest within an ISA.

melbury

TCA wrote: »

Which index is your Virgin PEP tracking? You're probably already getting dividends, they're just reinvested for you.

You should be able to close it and get the funds sent to you easily enough.

There are platforms through which you can buy investment trusts and hold them free of charge, via an ISA or normal trading account.

UK FTSE All-Share fund.

melbury

masonic wrote: »

No need to do so to reduce costs. Discount sharedealing platforms like X-O, SVS Securities and iWeb will allow you to trade for £5-6 and have no ongoing charges. Very cost effective for a portfolio of investment trusts and you have the option to invest within an ISA.

Thank you I will have a look at those. So I could still get paper certificates from these sharedealing companies and it wouldn't cost much, is that right?

masonic

melbury wrote: »

Thank you I will have a look at those. So I could still get paper certificates from these sharedealing companies and it wouldn't cost much, is that right?

No, on those platforms your shares would be held electronically. If you really want paper certificates I don't know how you would go about it.

melbury

masonic wrote: »

No, on those platforms your shares would be held electronically. If you really want paper certificates I don't know how you would go about it.

Thanks, sorry for the misunderstanding.

CLAPTON

melbury wrote: »

Thank you I will have a look at those. So I could still get paper certificates from these sharedealing companies and it wouldn't cost much, is that right?

paper share certs


http://www.santandersharedealing.co.uk/content/products/certificate.aspx