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Is selecting distribution funds over Accumulation in a GIA a good idea ? : UKInvesting

Hello there,

I currently have enough income to max out my ISA / SIPP and I am looking to invest via a GIA.

Currently, since the ISA is tax free I’m putting 100% equity there (Vanguard FTSE Global All-cap)

Ideally, I would do a mix of the same fund (Vanguard FTSE Global All-cap) + their Global Bond Index Fund in order to reach my desired allocation (80% Equity / 20% bonds)

However these 2 funds are “accumulation” and as far as I understand it’ll be more complicated when selling, because dividends and interests details do not appear within the broker.

  • I’ve read several threads/blogs and it seems we can easily get the dividends from accumulation funds though (https://www.trustnet.com/ )

  • But what about finding interest paid in accumulation bond funds ?

I’ve never done any tax return yet and I’m really worried about doing it wrong in a few years and really want to avoid any hassle.

Should I prefer “similar” distributing funds like FTSE All-world (VWRL) and a UK gilt (VGOV) fund instead for my GIA ?

Or should I just keep it easy by keeping the same acc funds as my S&S ISA and only worry in 20 years, as long as I keep a good track of dividends and interests.

  • I plan to invest yearly with one lump sum, so not many transactions.

  • I won’t be able to claim dividends allowance since I’m a contractor paying myself dividends each year (already using the allowance)

  • I’m 32 and investing long-term with the plan to withdraw

  • I’m looking for a bond fund that holds bonds to maturity

Thanks very much for your answers, don’t hesitate to send links as well since I haven’t found any convincing answer yet.

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