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IT (CTY ?) or low cost FTSE tracker..?

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
4 replies 553 views
C_MababejiveC_Mababejive Forumite
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edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
I'm just having a look at what i already have invested. I have some CTY. Part of me thinks that instead of CTY i should buy into a low cost FTSE tracker.

Reasons;

CTY doesnt accumulate so i have to reinvest when i think prudent to do so,hopefully on the dips,which involves some cost

Potentially CTY costs more to invest in

CTY is not as widely diversified as a FTSE tracker which could be seen as good or not so good depending on your view.

I dont need income right now and may not need it for 10 years or more. My SIPP is essentially running as a tax management vehicle at the moment though of course i want a good return also..

All comments welcome,,with thanks
Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..

Replies

  • Tom99Tom99 Forumite
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    I'm just having a look at what i already have invested. I have some CTY. Part of me thinks that instead of CTY i should buy into a low cost FTSE tracker.
    Reasons;
    CTY doesn't accumulate so i have to reinvest when I think prudent to do so,hopefully on the dips,which involves some cost
    Potentially CTY costs more to invest in
    CTY is not as widely diversified as a FTSE tracker which could be seen as good or not so good depending on your view.
    I don't need income right now and may not need it for 10 years or more. My SIPP is essentially running as a tax management vehicle at the moment though of course i want a good return also..
    All comments welcome,with thanks
    Maybe not as many holdings as a FTSE All Share tracker but both have c 35% in their top 10 holdings. With CTY 4.84% is in HSBC and a FTSE All Share about c 5.5% in HSBC so I'm not sure a FTSE tracker would give you that much more of a wide diversification.
  • AlexlandAlexland Forumite
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    If you don't need the income and are incurring trade fees to reinvest dividends then I would go for a low cost, total return and globally diversified accumulation fund such as the HSBC FTSE All World.
  • C_MababejiveC_Mababejive Forumite
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    yes i need to have a think about it. My current strategy is to auto reinvest the divi on the dips and take the cash when its in the green..
    Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..
  • ColdIronColdIron Forumite
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    CTY is a good income IT but I wouldn't use it for growth especially if it incurs costs to reinvest that income
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