S&S isa inc vs acc question

Mistermeaner

Hi

ive just rebalanced my Charles Stanley direct S&s isa selling a pile of equities to purchase some short term money market funds / fixed income things 

Tired and in a rush I accidentally put in an order for the inc version of this fund rather than the acc;

Royal London Short Term Fixed fund (inc) 

I don’t want income (yet anyway) so got me thinking what the difference is - I understand total returns it should make little difference as the ‘dividend’ paid is equal to the reduction in total fund value …. So minor inconvenience of me manually reinvesting the dividend does it make any difference ?

Also I read on google (not the fact sheet) that the dividend is paid quarterly- do you have to own the fund at the time of payment or if you sold one day beforehand do you get zero dividend. Likewise can you buy in the day before and get the dividend? I guess it doesn’t matter as your fund value goes up and down according to the dividend paid but just wondering how it works having only ever held acc funds before 

Should I just sell it and swap for the acc version ? 

ColdIron

Mistermeaner said:

So minor inconvenience of me manually reinvesting the dividend does it make any difference ?

Transaction fees? Seems to be 2 * £4 at CSD but they talk about trading credits

Also I read on google (not the fact sheet) that the dividend is paid quarterly- do you have to own the fund at the time of payment or if you sold one day beforehand do you get zero dividend. Likewise can you buy in the day before and get the dividend?

You need to own it on the ex dividend date, payment comes later whether you own it then or not. If you sell the day before you don't get the dividend, if you buy the day before you own it 'c.u.m' (with) dividend

Should I just sell it and swap for the acc version ? 

Personally I would swap, no point in owning something you didn't want

20122013

I am not sure whether this post will help:

https://forums.moneysavingexpert.com/discussion/comment/81743800/#Comment_81743800

'aroominyork     

17 November at 12:06PM

dunstonh said:

» show previous quotes

I use income wherever possible.   reinvest whilst in the accumulation stage (a natural form of rebalancing) and then run a cash float in the decumulation stage to allow a fixed regular draw with natural income replenishing it.

That's interesting. I expect most DIYers use accumulation funds during the accumlation stage - seems logical! - and hadn't thought of using income to rebalance. I guess it partly depends on whether your platform charges for trades, and maybe also whether you have disciplined yourself only to log on once or twice a year. '