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INC vs ACC - are my sums right?

How do you estimate what income you'll get from INC versions of a fund, vs the ACC price.

All my S&S are in ACC funds, and thinking of switching, but have I got the maths right. (appreciate this is all "in-hindsight" not what will happen)

Take my HSBC Global fund

The ACC version was at 273.52 in Jan 25 and now 296.65

The INC version was 222.77 and now 236.95

If i'd had £1000 invested in each of the funds, I would have bought 365 ACC units and they would now be worth £1084.56. The INC would have been 449 units and now be be worth £1063.65

Is the £20.91 difference what the INC fund would have paid out in income (dividends), and is that the YIELD % quoted on factsheets, fund data etc.?

So if instead i had £100,000 invested, that would have returned £2091, and I would still have my 449 units worth more than I paid for them.

Assuming all this is correct, how does it work if the price drops? Can you have negative yield?

Sorry if this is all very newbie stuff, but i've always just bought ACC units and forgotten about them.

How's it going, AKA, Nutwatch? - 12 month spends to date = 3.24% of current retirement "pot" (as at end December 2025)

Comments

  • Google says this.

  • OldScientist
    OldScientist Posts: 1,102 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper
    edited 31 January at 11:12AM

    While I'm not sure exactly which fund you are referring to, the amount paid out in dividends per share amount (i.e., per unit) (this information can be found online, e.g., https://www.fidelity.co.uk/factsheet-data/factsheet/GB00BMJJJG09-HSBC-FTSE-All-World-Index-Fund-C-Inc/dividends ) can be used to calculate how much would have been generated in income (much easier than using yield since that can be forward looking, backward looking or instantaneous depending on the source looked at).

  • Sea_Shell
    Sea_Shell Posts: 10,450 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    How's it going, AKA, Nutwatch? - 12 month spends to date = 3.24% of current retirement "pot" (as at end December 2025)
  • leosayer
    leosayer Posts: 913 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker

    Using your examples, last year your 449 ACC units would have accumulated dividends of:

    16-Oct-2025 365 x 0.0334 = £12.91

    16-Apr-2025 365 x 0.018877 = £6.89

    and your 365 income units would have paid:

    16-Oct-2025 449 x 0.027 = £12.12

    16-Apr-2025 449 x 0.016025 = £7.20

    The historic yield field on the link below (for the income fund) is 1.83% but this doesn't predict what you will get in the future which is entirely down to changing future investment performance and company dividend payouts.

    Income fund link here:

    https://www.fidelity.co.uk/factsheet-data/factsheet/GB00B7PHDP01-hsbc-global-strategy-balanced-port-inc-c/key-statistics

    Why are you switching to income units?

  • EthicsGradient
    EthicsGradient Posts: 1,574 Forumite
    Seventh Anniversary 1,000 Posts Photogenic Name Dropper

    Using as much accuracy as reasonable, and if those Fidelity figures are exactly right (but Fidelity figures on their web pages for funds from other managers aren't always precise):

    £1000 buys 1000/2.2277=448.89 income units

    These gave £12.12 and £7.19 income = £19.31

    now worth £1063.65

    or

    £1000 buys 1000/2.7352=365.60 accumulation units

    now worth £1084.56 (£20.91 more than the income increase)

    accumulated dividends on which you still pay income tax

    £12.21 and £6.90 = £19.11

    But there will also be the equalisation split of newly-bought units to take into account (we're comparing Jan to Jan prices, and the dividends are in April and October). You'll only find out the equalisation split if you actually own them, and then your platform will tell you, after the end of the tax year.

  • Sea_Shell
    Sea_Shell Posts: 10,450 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper

    Why? So as to have more "excess income" for gifting purposes. Capital gains don't count.

    All within ISA is so no income tax payable.

    How's it going, AKA, Nutwatch? - 12 month spends to date = 3.24% of current retirement "pot" (as at end December 2025)
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