AJ Bell - should I include dealing charges in the cost of investment?

ericlered7

Hi all, I have a question to ask about my AJ Bell SIPP.

I currently have some money sat in my SIPP account as cash & want to buy funds with some or all of it.

On the Buy Funds page it asks if I want to include dealing & other charges in the total cost of investment, or exclude them and pay them on top of the amount invested. 

Can somebody please help with which one is best to choose? I'm assuming there is no tax advantage to either choice?

Ps. This is my first investment in a SIPP.

Thank you in advance!

bjorn_toby_wilde

I answered on the other thread:

If you’re just talking about the dealing charge it doesn’t really matter.

Let’s say you are investing £10,000 then if you exclude the dealing charge it will cost you £10,001.50 and £10k will be invested.  If you include it then £1.50 will be taken from the £10k and £9998.50 will be invested.

Keep enough cash in the account to pay the monthly fees ideally. 

ericlered7

Ok thanks!