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Accumulating vs distributing funds

1 reply

usernamemarch24 · 24/03/2024 14:00

Since starting investing, I have noticed that there are distributing and accumulating versions of many funds.

I have always invested in the accumulating ones as I assumed it was best that the returns are re-invested automatically back into the fund as a long-term strategy, which is why I invest. I'm in my early 30s.

Could someone here explain to me what the benefits are of the distributing one? Am I missing something? Or is this better for those that are close to retirement / in retirement and want some kind of regular payout? Should I be investing in both?

OP posts:
NoBinturongsHereMate · 24/03/2024 16:48

Distributing is best for anything not in an ISA or pension, because otherwise working out the tax is a pain.

And yes, as you suspected they can also be used as a simple way to get income without selling.

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