Correct time to sell Accumulation fund

nxdmsandkaskdjaqd

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.

noggin1980

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.

fonsde

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 ?

xylophone

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."

badger09

fonsde wrote: »

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 ?

Its reflected in the price of the units.

Glen_Clark

xylophone wrote: »

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."

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.

xylophone

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.