Money Market funds

coyrls

ChilliBob said:

coyrls said:

With ii, if you buy through their regular investing facility, there is no dealing charge.  Although it's called regular investing, you can use it for one off purchases, just cancel it after the buy has gone through.

Interesting, I'd never thought of that. So you just setup regular investing, wait x days for the first one to go through, then cancel it?

Yes, that's right, it works.

Ciprico

coyrls said:

With ii, if you buy through their regular investing facility, there is no dealing charge.  Although it's called regular investing, you can use it for one off purchases, just cancel it after the buy has gone through.

I tried this  on II and csh2 was not available for regular free investing.  I bought some on regular market and took the fee £5.99 hit.... 

coyrls

Ciprico said:

coyrls said:

With ii, if you buy through their regular investing facility, there is no dealing charge.  Although it's called regular investing, you can use it for one off purchases, just cancel it after the buy has gone through.

I tried this  on II and csh2 was not available for regular free investing.  I bought some on regular market and took the fee £5.99 hit.... 

Ah OK, I haven't run into this issue (not available for regular free investing).

gizz_10

Just to say...I bought CSH2 in my ISA on Trading212 - no transaction or holding fees for ETFs or individual shares.

billy2shots

Stupid rookie MMF question. 

When are people receiving interest?

In the key information I am seeing 'Dividends ' paid annually,  bi-annually, quarterly but not monthly. 

When is the income / fund growth (if acc) received?

dunstonh

billy2shots said:

Stupid rookie MMF question. 

When are people receiving interest?

In the key information I am seeing 'Dividends ' paid annually,  bi-annually, quarterly but not monthly. 

When is the income / fund growth (if acc) received?

Short term moneymarket funds have to discourage those dipping in and out.  So, they use longer frequencies for the distributions.  They also have a longer period where they go XD to payment.

So, for example, RL's fund went XD last week but it won't get paid until the end of June.

If you use the income units, you won't get any growth in the unit price apart from the accrued interest before it goes XD.  Once it goes XD, the unit price drops back again.

Acc units, retain the interest within the fund, So, the unit price will increase as it goes along.  I always use inc units.

InvesterJones

billy2shots said:

Stupid rookie MMF question. 

When are people receiving interest?

In the key information I am seeing 'Dividends ' paid annually,  bi-annually, quarterly but not monthly. 

When is the income / fund growth (if acc) received?

Not a stupid question. But it depends on the fund - they will have a date that dividends or income are paid on - there might be some kind of factsheet you can check this on. Accumulation obviously don't pay this, so there isn't a date (the fund will grow as it makes money from it's underlying holdings, not on a particular date).

billy2shots

Thanks,

My understanding was correct then. The dividend frequency is clear. 

Good old trusty Google confused me with 'Money Market Funds calculate interest daily and distrubute monthly,  

That blanket description is obviously wrong and only applies to monthy stipulated dividends. 

So for many MMFs we are talking about fixed term then. If the distribution is paid every 6 months you either accept and wait for that time or withdraw early and miss out on the payment (before ex divi)

Not so good for me who was hoping to use a mmf as a safe haven and redistribute if equities fall a reasonable  amount.

wmb194

billy2shots said:

Thanks,

My understanding was correct then. The dividend frequency is clear. 

Good old trusty Google confused me with 'Money Market Funds calculate interest daily and distrubute monthly,  

That blanket description is obviously wrong and only applies to monthy stipulated dividends. 

So for many MMFs we are talking about fixed term then. If the distribution is paid every 6 months you either accept and wait for that time or withdraw early and miss out on the payment (before ex divi)

Not so good for me who was hoping to use a mmf as a safe haven and redistribute if equities fall a reasonable  amount.

Why would you be restricted to a fixed term? Sell them whenever you like. If you sell before it goes ex-d the dividend/interest (however it's classified - probably interest) should be reflected in its price.

Your Google search was probably referring to American MMFs.

Malthusian

billy2shots said:

So for many MMFs we are talking about fixed term then. If the distribution is paid every 6 months you either accept and wait for that time or withdraw early and miss out on the payment (before ex divi)

As wmb says this is not correct. You don't miss out on anything. Let's say you had £1,000 in the money market fund and in that six months it makes 1.5% in interest. If you sell just before the ex-dividend date you get £1,015. If you sell just after you get £1,000 and the other £15 arrives in your bank account when the distribution is paid. 
Distributions are not important. They are just the fund manager moving some money you already own from an account you already own (the fund's account) to a different account you already own (your nominated bank account).