Vanguard Website

[Deleted User]

On the overview page of the Vanguard website, there are three vertical dots on the right hand side of your investment. When clicking on these, there are some options - BUY SELL and SWITCH.  I'd like to understand the purpose of the switch option.  If it is 'to switch your fund to another', than how does this option differ (or indeed, any advantages) from doing a sale of the current invested fund and issue a buy instruction of another fund?   Would greatly appreciate any explanations. 

Alexland

By doing a switch you don't need to keep checking on when the proceeds of sale are added back into the account to click the buy button so more convenient with minimal time out of the market. Some fund manager platforms (not Vanguard from memory) can even switch funds at the same valuation point to avoid any time out the market.

[Deleted User]

OK - Many thanks for your reply.  So if you do a switch of units from a non wrapped account to an ISA account, (which will be completed in less than 30 days,) would this effect the 30 day rule for CGT?   

Alexland

'Switching' is usually from one investment to another not between accounts? Vanguard may allow you to transfer money between accounts and if so this would be treated as a cash contribution into the ISA account. A switch is basically just a sale and purchase transaction.

Albermarle

A switch would normally only happen within an account , not between accounts , even ones on the same platform.
It is just convenient sometimes to switch funds rather than buy and sell . 

[Deleted User]

Lindabea, The switch funds option is without charge. The buy sell fund option incurs charges/fees. That is my understanding,but Vanguard will know for certain, I suggest you contact them for  certainty. Regards

grumiofoundation

thetimewill said:

Lindabea, The switch funds option is without charge. The buy sell fund option incurs charges/fees. That is my understanding,but Vanguard will know for certain, I suggest you contact them for  certainty. Regards

Vanguard don't charge to buy/sell their funds (only ETFs if want to trade live). 

[Deleted User]

Grumio...., Thanks for clarity, I used the switch and Vanguard confirmed no charge, hence my reply.. Apologies for confusing matters. I did say check with Vanguard for a definitive answer. Regards

Eco_Miser

[Deleted User] said:

OK - Many thanks for your reply.  So if you do a switch of units from a non wrapped account to an ISA account, (which will be completed in less than 30 days,) would this effect the 30 day rule for CGT?   

I doubt that it would be possible, but it were, since there is no CGT in an ISA, the 30 day rule would not apply.