Hi there,
Do accumulating investment funds reinvest any dividends received on a daily basis, maximising the opportunity for gains in a rising market, or do they, as I have started to suspect, collect the cash and reinvest it at the same time as the sister income units fund pays its dividend?
Or something else?
If I invest in a fund that has only accumulating units (e.g. iSHares North American Equity) how do I predict when the 'dividends' will apply (I remember from several years back being surprised by getting a tax cert for an accumulating fund with a specific date for the dividend payment).
Many thanks,
Jeff
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Accumulating Funds
Re: Accumulating Funds
Afternoon,
I believe the accumulation funds will reinvest on the same schedule as the income version. Meaning they don't instantly reinvest the dividends they let the cash build up until the pay out date, then they reinvest or pay out the dividend depending on the shareclass.
https://www.youinvest.co.uk/articles/sh ... tion-units
I haven't noticed different share classes with different dividend schedules.
I believe the accumulation funds will reinvest on the same schedule as the income version. Meaning they don't instantly reinvest the dividends they let the cash build up until the pay out date, then they reinvest or pay out the dividend depending on the shareclass.
https://www.youinvest.co.uk/articles/sh ... tion-units
I haven't noticed different share classes with different dividend schedules.
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Re: Accumulating Funds
RocketMan wrote:I believe the accumulation funds will reinvest on the same schedule as the income version. Meaning they don't instantly reinvest the dividends they let the cash build up until the pay out date, then they reinvest or pay out the dividend depending on the shareclass.
I think the rules regarding the creation of new units and the price at which these units are created require them to do this.
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