Stocks and Shares ISA Automatic Reinvestment

chewthecarpet

Yes,  ACC.

wmb194

chewthecarpet said:

Yes,  ACC.

There you go; rather than being paid out to HL to invest in new units, any income is being reinvested within the funds themselves.

dunstonh

chewthecarpet said:

Yes,  ACC.

Inc units pay the income out and when you reinvest the income, it buys more units
Acc units retain the income within the fund and increase the unit price pro-rata.

So, you end up with a situation a bit like
5x2  vs 2x5.   i.e. one with more units but lower unit price vs less units with higher unit price but both being the same value.

chewthecarpet

OK, so not so bad then! Thank you.