Interactive Investor - Regular Investment vs Manual Investment

masonic

BigBlueSky wrote: »

Thanks - Yes, I think you are right (I'm not sure when it dropped to £1). I have some other funds to sell on II - Do you happen to know how long they take to sell to have the funds available ? - The one I sold recently seemed to take around 3 days (not sure if this is normal).

For funds orders placed before the cut-off time on a working day, the funds should be available to reinvest the following day. You don't need to wait for settlement if reinvesting. Most of my holdings at II are investment trusts and ETFs, which trade immediately, but I hold a few OEICs.

TBC15

All this is food for thought.

Another Top tip if your investments are with II is the £10 per trade goes up to £40 on amounts over £100000. So split the trades and only pay £20 instead of £40.

TBC15

BigBlueSky wrote: »

Thanks - Yes, I haven't been using my trade credits, but definitely going to use all very soon so looking to keep costs to a minimum.

I hadn't realised that funds have only one price per day. I was thinking maybe I wouldn't get the best price, but in that case I might as well use their regular investment option and then cancel.

I’ve found OICS take 5 days to clear before you can reinvest after putting in the sell.

masonic

TBC15 wrote: »

I’ve found OICS take 5 days to clear before you can reinvest after putting in the sell.

Really? That does seem like an error on their part. It should take until settlement until the funds are available for withdrawal, but I've always had money available to invest as soon as the contract note is issued, even with OEICs.

For example, I placed a sell order for an OEIC on Monday 14th January and the proceeds were used to invest in 2 investment trusts (via regular investing) on Wednesday 16th January. The settlement date for the OEIC trade was Thursday 17th January.

TBC15

masonic wrote: »

Really? That does seem like an error on their part. It should take until settlement until the funds are available for withdrawal, but I've always had money available to invest as soon as the contract note is issued, even with OEICs.

For example, I placed a sell order for an OEIC on Monday 14th January and the proceeds were used to invest in 2 investment trusts (via regular investing) on Wednesday 16th January. The settlement date for the OEIC trade was Thursday 17th January.

Thanks for that, I was squirming out of market for a week. I’ll take them to task next March if it happens again. However if you are investing via regular investing you must have had a direct debit or whatever in place to cover this that would have drawn funds well ahead of the investment date from your bank, I must admit I’m slightly confused.

BigBlueSky

TBC15 wrote: »

However if you are investing via regular investing you must have had a direct debit or whatever in place to cover this that would have drawn funds well ahead of the investment date from your bank, I must admit I’m slightly confused.

Or a cash balance I presume - That is what my plan is

masonic

TBC15 wrote: »

Thanks for that, I was squirming out of market for a week. I’ll take them to task next March if it happens again. However if you are investing via regular investing you must have had a direct debit or whatever in place to cover this that would have drawn funds well ahead of the investment date from your bank, I must admit I’m slightly confused.

No I have no direct debit set up. The regular investment either executes from cash on my account or it doesn't execute at all. In this instance it executed from the proceeds of my sell order (before settlement of those funds). I had no other available cash.