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Where to keep funds in short term

13

Comments

  • 20122013
    20122013 Posts: 755 Forumite
    500 Posts First Anniversary Name Dropper
    edited 28 April at 6:12PM

    thanks for the explanation. my order was to sell no. of units (OEIC) so I do not know the NAV price, so is there a way to factor in their fee so they do not take it from my units (OEIC) I do not think there is.

  • 20122013
    20122013 Posts: 755 Forumite
    500 Posts First Anniversary Name Dropper

    MONEY MARKET FUNDS

    I am looking at

    GB00BFYDWM59 (Vanguard) (OEIC)

    and

    GB00B8XYYQ86 (Royal London) ETF

    As the ETF is not covered by FSCS. I am thinking of splitting the amount to place between the MMFs? what would the maximum amount be placed in the Royal London ? as I was going to do 50/50 but may 70/30 due to the ETF and only parking there for 4 weeks and a bit nervous with ETFs

  • masonic
    masonic Posts: 29,670 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper

    The Royal London fund is not an ETF.

  • 20122013
    20122013 Posts: 755 Forumite
    500 Posts First Anniversary Name Dropper
    edited 27 April at 4:10PM

    The BUY and SELL prices make me think is an ETF?

    At the end of the fund name it does say 'ACC'

    Am I looking at the right fund? (finding funds on ii is no easy for me).

  • eskbanker
    eskbanker Posts: 40,833 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic

    The wording at the foot saying "Legal Structure: Open Ended Investment Company" is a better indicator…

  • Nurse2047
    Nurse2047 Posts: 434 Forumite
    Fifth Anniversary 100 Posts Name Dropper Photogenic

    if useful for anyone un-invested cash in Trading 212 s&s isa pays me 3.8%, was higher originally as new investor

    Nurse striving for financial freedom
  • thunderroad88
    thunderroad88 Posts: 140 Forumite
    Fourth Anniversary 100 Posts Name Dropper

    if you’re definitely going to reinvest all your cash back into stocks within a month I’d question the value of putting the cash into a mmf…you will incur small charges every time you sell some mmf units to free up cash unless you release it all at once to buy your funds, and that hardly seems worth the bother. If you think you’ll be retaining your investable cash for longer than a month (and that’s pretty possible in the current volatile environment) then certainly use mmf. In addition to previously mentioned fubds, there is another new instant access etf ERAN, which is an ACC version of the very popular ERNS ultra short dated bond fund. I use it as well as the various RL short term mmf and fixed income funds to hold my cash.

  • 20122013
    20122013 Posts: 755 Forumite
    500 Posts First Anniversary Name Dropper

    Appreciate the replies, as I am open to more options,

    @thunderroad88 , would you mind sharing the symbols or ISINs of the funds mentioned, please?

  • aroominyork
    aroominyork Posts: 3,899 Forumite
    Part of the Furniture 1,000 Posts Name Dropper

    Not sure I agree with this. Say the amount is £20k and earns 1.1% as cash balance or 3.9% in Royal London's STMMF, the respective monthly incomes are £18.33 and £65. Even with the £1.49 trading costs (if no trading credits are available) and taking into account that RL will be out of the market for one day after sale, it is probably worth investing.

  • thunderroad88
    thunderroad88 Posts: 140 Forumite
    Fourth Anniversary 100 Posts Name Dropper

    Depends if it’s in for a whole month and also whether the OP sells the mmf all in one go as to the selling fees….on the buying side, if the OP is buying 4 or 5 ETFs that is £20 in fees. I guess it depends how much you value £30 in the grand scheme of things, and I know what the name of this site is, but personally I wouldn’t worry about saving £30…the convenience of having the cash ready to buy immediately and possibly taking advantage of a daily drop if buying ETFs would be more important to me.

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