Where are my dividends??

AnotherJoe

FDa65rdk wrote: »

Thanks.

So should I be able to see some record on my Hargreaves Lansdown account of the dividends being reinvested?

NO ! The fund management reinvest as they go along and the acc fund units gradually increase in price as a result (or fall less if the fund value is falling). .
Nominally, excluding other factors if there was a fund where units are £1 and it paid a 5p dividend, after 1 year the inc units would be £1 and you'd have 5p income, the Acc units would be £1.05p and you'd have no income. There will be no dividend. Your belief that acc units work by someone buying you more units is completely wrong, instead the acc price increases as that money is retained within the fund .
The is why the acc and inc units are very different prices. For this fund acc are currentiy about 110p and inc 21p. If you go back to when the fund was launched, and add up all the dividends the inc ever paid it would come to the same as the acc is now.

There are some other complexities to do with tax if this is not in a SIPP or ISA that show nominal dividends for the acc, by they arent "real" and you'll never see them, but essentially that's it, inc pays out dividends, acc retains them and grows in price by the dividend amount instead

ColdIron

FDa65rdk wrote: »

So should I be able to see some record on my Hargreaves Lansdown account of the dividends being reinvested?

As others have explained the dividends are simply retained within your Acc fund so you don't see a cash payment but that doesn't mean they don't exist. If you have an unwrapped Fund and Share account those dividends are liable for tax so you will see them detailed in your annual tax certificate. If you have them in an ISA or SIPP they are free from tax so you won't get a certificate. HL choose not to show much dividend information for funds but Trustnet do, have a look under the Dividend tab in the link below

https://www.trustnet.com/factsheets/o/09qf/jupiter-india-i-acc

bearshare

Oddly (I think) - Youinvest, alone of the platforms I have used, send me a secure message each time a dividend is paid, even for Acc funds. It is a bit confusing initially, as the cash account shows a dividend received for Inc funds, but not for Acc funds.

AnotherJoe

bearshare wrote: »

Oddly (I think) - Youinvest, alone of the platforms I have used, send me a secure message each time a dividend is paid, even for Acc funds. It is a bit confusing initially, as the cash account shows a dividend received for Inc funds, but not for Acc funds.

That's because you need that for tax purposes, even though you don't get the dividends as such, and if its in a SIPP or ISA yiu can ignore it. I can see that would be very confusing. Certainly would have confused me until recently.

Wassa123

To be honest, if you've been in Jupiter India for a year, I would be a lot less worried about the 0.80% dividend, and more worried about the -17.66% drop this year.

[Deleted User]

Hi,


he's got another thread about that here, then there's this one.

System

FDa65rdk wrote: »

But I'm a bit confused (and I must have got the next bit wrong) because I thought that with an accumulation fund the dividends were re-invested in the fund to purchase more units.

No, the value of each unit rises.

FDa65rdk

[Deleted User] wrote:

so, if you buy another 50 units in the same fund you are still investing in the same fund, no difference.

But if I'm buying another 50 units then why does the number of units not change?

FDa65rdk

Wassa123 wrote: »

To be honest, if you've been in Jupiter India for a year, I would be a lot less worried about the 0.80% dividend, and more worried about the -17.66% drop this year.

That's not the point. I accept investments go up and down and I said this dividend issue applies to all my investments not just Jupiter India.

FDa65rdk

Tarambor wrote: »

No, the value of each unit rises.

This is the bit I still don't understand. Let's say the cost of a unit is £1, I have 1000 units and receive a 5% dividend.

If that dividend was used to purchase more units, the dividend would be £50 and another 50 units would be purchased, increasing my holding by 5%.

However if the dividend is used to increase the value of each unit then the £50 would be a drop in the ocean (conceivably much less than one millionth) compared to the fund as a whole. This would not be the same as a 5% increase.

OR.... (I think I've got it!!)

Is it that because it's an accumulation fund, that 5% dividend would apply to EVERYONE who has invested in that fund and there would be a massive collective investment on dividend payment day thereby raising the cost of a unit by 5%?

So on the day a dividend is paid on an accuulation fund you should see whatever the change in price is on that day plus the effect of the dividend.

In other words, if a fund is offering a 5% dividend and it goes up independently on the dividend payment date by 1% then it should go up by roughly 6% when you include the dividend?