The Lemon Fool

What are Lemon Fools views on whether to go for income or accumulation when chosing an OEIC held in an ISA?

Generally I go for acc, as no need to account for dividends or capital gains, so just easier. Unless you want to withdraw income of course.

In an ISA there wouldn't be any tax to account for.

I don't think it'd make much difference. If you go for income units, you'd have cash easily available to withdraw, or invest in something else.

Personal preference.

Scott.

Acc, less admin, unless you are a keen rebalancer who likes a cash flow to move around

As teacher used to say 'Answer the Question!'

The OP said 'held in an ISA'. It makes no difference has someone may have already said because there is no tax to worry about. So it depends if you want to draw an income or not.

Dod

If you are not drawing the dividend income, then go for accumulation units. You should be able to convert to income units when the time comes. If there is an initial charge when buying new units, then avoiding reinvestment of dividends may save some money.

If you wish to reinvest the dividends elsewhere, then income units are the ones to have.

TJH

Does it make any difference when rebalancing within the ISA? For example, if you held income units which paid out once per year but you rebalanced and sold them before the payout / ex-dividend date would you have been better off with accumulation units where the dividend income is reflected in the price? Topic for research...

It all depends on who manages your ISA? If it's a fund manager, there is one answer. If it's a broker, there are different answers for each one.

Look carefully at the T&C's to find the answer.

TJH