Income funds where no Accumulation fund available

canaryjim

Hello all

I want to invest in a fund but my SIPP platform only offers the income fund. I want the accumulation one. Does it matter if I just go for the income fund and then buy more of the fund with the income it produces?

I'm years from retirement so I'm long off drawing down etc.

Any help gratefully appreciated!

dunstonh

I always prioritise income units over accumulation. However, in the growth stage it really doesnt matter. Just reinvest the income and get the same result.

tacpot12

If your SIPP Platform charges to re-invest dividends then the result isn't going to be quite the same. You could ask the SIPP Platform whether they would consider adding the ACC units to the platform.

dunstonh

If your SIPP Platform charges to re-invest dividends then the result isn't going to be quite the same.

In which case, change to a better SIPP provider. A bit of short term hassle but things like this should be filters that people have in their provider research.

canaryjim

Thank you very much guys. I will check - its AJ Bell and I'm just looking to have some Lindsell Train Global Equity..

Linton

It appears that Lindsell Train Global Equity doesnt have separate Acc and Inc funds. Look on https://www.trustnet.com. One of my funds, BMO US Small Companies, is also just available as an Inc fund.

newatc

I like Hargreaves Landsdown but was really annoyed to find that they charged for reinvesting income. So I stopped the automatic re-invest and do it manually.

Alexland

dunstonh wrote: »

In which case, change to a better SIPP provider. A bit of short term hassle but things like this should be filters that people have in their provider research.

It would be a shame to filter out very good SIPP providers such as Halifax Share Dealing just because they charge for dividend reinvestment. For large pots they are still a low overall cost DIY option regardless of this aspect of their fee structure.

Alex

Fermion

Exactly what I do. Using manual reinvestment means that you can choose which funds you reinvest with to tweak your portfolio.
Incidentally, I switched all of my funds to Income funds well before I went into drawdown to avoid having to sell/switch all funds at drawdown. Another advantage of Income funds is that you can precisely check the annual/ongoing yield from your portfolio.

dunstonh

Alexland wrote: »

It would be a shame to filter out very good SIPP providers such as Halifax Share Dealing just because they charge for dividend reinvestment. For large pots they are still a low overall cost DIY option regardless of this aspect of their fee structure.

Alex

And if you have carried out that analysis and worked out it is still cheaper then you have your justification.