1. Convert your accumulation units into income units
Most funds are available as either Income or Accumulation units. With accumulation units, any income generated by the fund is automatically re-invested back into the fund (see the difference between Income and Accumulation units). By converting any accumulation units to income units, any income generated will be transferred into your Cofunds Cash Account by default.
2. Choose how you would like to receive your income
Your options are as follows:
- Have the income paid into your Cofunds Cash Account and then make withdrawals into your [nominated bank account] when required. For more information please see here.
- Have all generated income paid out to your [nominated bank account] monthly. This means however much income has been generated will be paid out to your nominated bank account.
- Have a specific amount paid into your nominated bank account monthly. Please note that if there isn’t enough income generated to cover the amount you would like paid out to your nominated bank account, then Cofunds will automatically sell some of your holdings to cover the shortfall.
Once you have decided how you would like to receive your income, please send us a signed letter explaining which option you’d prefer, and we will get this set up for you.
Some things to keep in mind
- If you receive income for funds held within an ISA, the income paid out is no longer held within the ISA wrapper.
- Any income received from holdings within an ISA is exempt of income tax - please contact the HMRC for further details.
If you have any questions regarding this process, you can contact us at firstname.lastname@example.org or by calling us on 0333 222 3733.