Vanguard S and S ISA

dd95

Please ignore my ignorance

i have tried to read up on how these types of funds make investors money (obviously via dividends if successful)

is there any other ways? does this money then go into my fund to make more money?

apologies again for the somewhat stupid question

Albermarle

Firstly for clarity , a S&S ISA is just a tax wrapper for your investments , not an investment fund itself .
Within a S&S ISA you can have many different investments .

As you mention Vanguard , let's use one of their popular Life strategy funds as an example .
Within the fund there is a large selection of other investments , such as company shares, bonds and index trackers from around the globe .
When you invest in this Vanguard fund , you own a part of it ( only a very small part ) When the investments in the fund go up , the value of the fund increases, so your very small part of it also increases. Also when it goes down , your investment goes down as well.
Most of the investments in the fund will also pay dividends. You can take this as income or it can be automatically reinvested in the fund. In this case you increase your holding in the fund a little each time .

george4064

There are two types of funds;

1. Accumulation units (generally speaking most common), any income is held within the fund and hence increases unit price. In addition to dividends, unit price may increase (or decrease) if the overall share prices of the securities held within the fund increase (or decrease) in price.

2. Income units, where any income is paid out to unit holders (such as yourself). Here dividends do not affect the unit price hence unit price is purely driven by share prices of the underlying securities held within the fund.

dd95

thanks albermarle

so if i chose to sell everything in 10 years i may make money on what i put in (500 initial and 100pm) - alternately if i wanted to sell a year later instead my fund may have decreased?

i currently have the LifeStrategy 80 (500 deposited)

i have now set up a DD for £100pm into LS80 and LS60 just for different risk - is this a good strategy or wold you suggest it all into LS80/ other?

ec9wrr

dd95 wrote: »

thanks albermarle

so if i chose to sell everything in 10 years i may make money on what i put in (500 initial and 100pm) - alternately if i wanted to sell a year later instead my fund may have decreased?

i currently have the LifeStrategy 80 (500 deposited)

i have now set up a DD for £100pm into LS80 and LS60 just for different risk - is this a good strategy or wold you suggest it all into LS80/ other?

If you sell tomorrow you may make money or you may loose money. If you sell in 10 years time you may make money you may loose money. The length of time invested doesn’t guarantee anything. Have a read of fool.co.uk for some basic investment information. I found that handy when starting out. Or vanguard actually have some great info on their site as well. It’s worrying me that you’re already throwing money at a stocks and shares isa with little understanding of them. Slow down, do some reading.

Alistair31

dd95 wrote: »

thanks albermarle

so if i chose to sell everything in 10 years i may make money on what i put in (500 initial and 100pm) - alternately if i wanted to sell a year later instead my fund may have decreased?

i currently have the LifeStrategy 80 (500 deposited)

i have now set up a DD for £100pm into LS80 and LS60 just for different risk - is this a good strategy or wold you suggest it all into LS80/ other?

Putting equal amounts in 80 and 60 just creates a 70. Fine if that’s what you are looking for; but respectfully I don’t think you know what you are aiming for. And you should. Ideally before making any investment(s)

As ec9 says, slow down. In fact, didn’t I say similar on one or two of your previous threads, very recently ?