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Screening for Growth

Closed-end funds and OEICs
thedukewood
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Screening for Growth

#288156

Postby thedukewood » March 3rd, 2020, 8:54 am

Hi there

I am lucky enought to be able to consider investing in a GIA.
I rarely have any opportunity to take advantage of the available CGT relief so was thinking about trying to select a basket of ITs with very little dividend income ( as I don't really want more tax liability here) and a focus on growth.

The plan would be to buy, monitor and broadly hold. Harvesting gains up to CGT allowance as and when those gains were there and leaving it when they aren't. Sort of using it as bonus income for discretioary spending so I wouldn't be releying on it delivering every year.

Firstly does this plan make broad sense to others please?
Is there anything else I should consider / think about?

Secondly - if it does make sense what is the best way to screen and select such a basket please?

And finally as part of second point how to then make sure the basket doesn't contaminate the overall assett allocation too much

Many thanks

DavidM13
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Re: Screening for Growth

#288177

Postby DavidM13 » March 3rd, 2020, 10:31 am

Here is a starter for ten https://www.investmentweek.co.uk/analys ... y-dividend

And surely the way to screen is to just sort on dividend yield and have a low cut off to narrow your universe down?

OllyDrod
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Re: Screening for Growth

#288224

Postby OllyDrod » March 3rd, 2020, 1:49 pm

Possibly a daft question, but presumably you're already maxing out annual ISA/SIPP allowances..? If not, strongly consider using those instead of investing outside a wrapper. Also bear in mind you may be able to 'Bed & ISA' unwrapped investments into your ISA each year up to the 20k allowance.

Nothing wrong with your plan in theory, but you'll need to be careful you don't end up just selling off your winners and holding on to the stuff that didn't perform. Personally, I'm not a fan of these income-from-growth type strategies because experience has shown me to be an extremely poor judge of what to sell and when... however (plenty of) others on this forum disagree!

In terms of screening, I'd start with the 'Interactive Statistics' part of the AIC website. Go to 'Data Points' and 'Select All'. Then the options on the 'Filters' tab should get you most of the way there (link: https://www.theaic.co.uk/aic/find-compa ... statistics)

Not sure what you mean by:
thedukewood wrote:And finally as part of second point how to then make sure the basket doesn't contaminate the overall assett allocation too much

Can you elaborate?

-OllyDrod

thedukewood
Posts: 22
Joined: January 30th, 2019, 8:28 am
Has thanked: 6 times

Re: Screening for Growth

#289100

Postby thedukewood » March 7th, 2020, 9:40 pm

Thanks re: the question

I was thinking about my overall assett allocation across all holdings.
So was thinking I'd need to keep an eye on regional/sector etc holdings if I go the IT route to see how this plays into overall assett allocation I have / am aiming to hold or review accordingly


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