Very new to the world of investing, in fact, I haven’t even put down a penny yet. I have been focusing on research and learning at the moment.
From everything I have learnt, my first priority is to open stocks and shares Lifetime ISA due to the government bonus when I go to buy my first home.
The problem I am facing is finding a suitable shariah-compliant index fund/ETF on AJ Bells platform which I am using for my Lifetime ISA. Is there a list available of all the shariah-compliant Index Funds and ETFs that I can use to make a judgement call and invest my first £4k for this year.
i meant as we don’t have any available accumulating ishare etfs , the compounding long term effect of having an accumulating vs distributing etf is very big , so my question would be how can we make the right use of these distributing etfs besides reinvesting them.
@Musa_Absi you are correct in saying that dividend reinvestment has a great impact on the long term returns due to snowball effect.
However, it’s not a massive issue if there is not an accumulation share class for a particular fund you are interested in. The accumulating funds class “automatically” reinvests the dividend in the funds. However, you can get the same impact by “manually” reinvesting the dividend yourself. so eg whenever the dividend is declared from the distributing fund, you just buy more units straight away with that dividend amount. - will incur the transaction cost depending on which platform you are on which can not be massive - Trading 212 should be free and AJ bejj i belive charge £1.5.
If you don’t want the hassle, you can consider the HSBC fund with “IC” share class.