IT vs OEIC for growth
Posted: August 1st, 2019, 2:01 pm
When debating whether to buy an IT, or an OEIC that looks to invest in similar areas (according to the TrustNet comparison tool, they're pretty closely correlated), I'm going round in circles & would appreciate your thoughts.
I'm investing for growth at the moment (& am likely to still be for the next 10 years or so), so having dividends automatically bundled back into an accumulation fund seems the more straightforward option. Also, they generally seem to be cheaper to hold.
Having read a lot about them & how they're managed, I like the idea of investing in IT's & how they can be used to generate an income via dividends, but don't really want to have to switch from fund to IT down the line when I need to draw that income. I'm investing using iWeb & they charge 2% to reinvest IT dividends for you. I could do it myself by bundling it up with other money I'm paying in, but probably wouldn't end up putting it back into the IT it came from, which will adversely affect returns from that IT.
So it sounds like a fund is the way forward....but I'm still keen on IT's & find myself trying to find reasons to invest in them!
I'm investing for growth at the moment (& am likely to still be for the next 10 years or so), so having dividends automatically bundled back into an accumulation fund seems the more straightforward option. Also, they generally seem to be cheaper to hold.
Having read a lot about them & how they're managed, I like the idea of investing in IT's & how they can be used to generate an income via dividends, but don't really want to have to switch from fund to IT down the line when I need to draw that income. I'm investing using iWeb & they charge 2% to reinvest IT dividends for you. I could do it myself by bundling it up with other money I'm paying in, but probably wouldn't end up putting it back into the IT it came from, which will adversely affect returns from that IT.
So it sounds like a fund is the way forward....but I'm still keen on IT's & find myself trying to find reasons to invest in them!