We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Correct time to sell Accumulation fund
nxdmsandkaskdjaqd
Posts: 875 Forumite
If you are selling an Accumulation Fund with an underlying Dividend Yield, is there a optimal/sub-optimal time to sell the fund to maximise return?
I appreciate that with an Income Fund you have to hold the fund to the Ex-dividend date.
I appreciate that with an Income Fund you have to hold the fund to the Ex-dividend date.
0
Comments
-
nxdmsandkaskdjaqd wrote: »If you are selling an Accumulation Fund with an underlying Dividend Yield, is there a optimal/sub-optimal time to sell the fund to maximise return?
I appreciate that with an Income Fund you have to hold the fund to the Ex-dividend date.
you don't really, in theory the share price takes it into account which is why the price drops normally on the ex div date.0 -
Another question about accumulation funds. When the dividends/ coupons are paid ; is that reflected with a rise in NAV price? or you get more shares ?0
-
http://www.hl.co.uk/investment-services/vantage-service/frequently-asked-questions
"With accumulation units income is retained within the fund, although the number of units remains the same, the price of each unit increases and hence the value of your holding rises."0 -
That sounds a bit misleading to me. Surely the income is received by the accumulation fund and used to buy more shares. Value of cash held in the accumulation fund is reduced, value of shares held by the accumulation fund is increased by the same amount. So there is no change in the overall value of the accumulation fund on any particular day. Unlike an income fund or ordinary share where cash effectively leaves the fund on the ex dividend day so the value falls by that amount.http://www.hl.co.uk/investment-services/vantage-service/frequently-asked-questions
"With accumulation units income is retained within the fund, although the number of units remains the same, the price of each unit increases and hence the value of your holding rises."“It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair0 -
Example http://www.trustnet.com/Factsheets/tnuk/FactSheet.aspx?fundCode=GTF91&univ=U
Invesco Perpetual Distribution Acc 110.93
Invesco Perpetual Distribution Inc 65.63
illustrates the point.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.4K Banking & Borrowing
- 254.1K Reduce Debt & Boost Income
- 455K Spending & Discounts
- 246.5K Work, Benefits & Business
- 602.8K Mortgages, Homes & Bills
- 178K Life & Family
- 260.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards