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Stocks and Shares ISA Automatic Reinvestment

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Comments

  • chewthecarpet
    chewthecarpet Posts: 38 Forumite
    Fourth Anniversary 10 Posts
    Yes,  ACC.
  • wmb194
    wmb194 Posts: 5,602 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 9 June at 4:10PM
    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
    dunstonh Posts: 120,616 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    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.

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • chewthecarpet
    chewthecarpet Posts: 38 Forumite
    Fourth Anniversary 10 Posts
    OK, so not so bad then! Thank you.
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