Quick question around automatic investment with HL JISA

luke222010

Hi all,

Quick question for those in the know - I have set up a JISA for my little boy, and am currently investing into a VG LS 60% acc. fund.

My current instruction is for any money in the account (I deposit £50 a month into it) to be held on account which I then invest back into the same fund once I have accumulated £100 sitting in there manually (as the minimum deposit into this particular fund is £100).

I do have an option with regards to money on account, to be 'automatically reinvested'.
Does anyone know, if this means it will be invested into various funds/stocks or does it mean it will automatically go into the existing VG fund?

I suspect the former but want to know for sure in case I should change to automatic investment.

Thanks in advance.
L.

jimjames

How many funds do you have in the ISA? Which provider is it with?
Normally the automatic reinvestment is for dividend income which isn't relevant with ACC units. It wouldn't normally be used for monthly contributions.

luke222010

jimjames wrote: »

How many funds do you have in the ISA? Which provider is it with?
Normally the automatic reinvestment is for dividend income which isn't relevant with ACC units. It wouldn't normally be used for monthly contributions.

Only one fund, with HL, a vanguard life strategy 60% acc. fund.
I assumed, by the sounds of it incorrectly, that the automatic investment was for any funds on account to be automatically invested. But as you say, it looks like its more to do with dividend income, I should have realised this, thanks for replying!

george4064

Yep, sounds like you are getting confused with regular investing and dividend reinvestment.

The minimum regular investing amount is £25 per month. If you have setup correctly your £50 per month will be invested automatically into your chosen fund (in this Vanguard LS 60% Acc.)