There are lots of reasons why investors might seek an income stream from their investments; for example, to pay for a dependant’s education, supplement a pension, or fund the cost of care.
If you require regular income you can invest in a Fund that pays out Dividends from equities or interest from bonds, rather than have your returns invested back into the Fund. Typically, Income Funds pay out twice a year but this can vary so it’s important to check the literature on individual Funds. You also need to be aware that income payments can go down as well as up.
Things to remember about investing for income:
To assist you, below is a shortlist of Funds for your consideration compiled by our in-house research team. As a starting point, all Funds chosen are highly regarded by our independent research partner Morningstar having received favourable Morningstar Fund and Analyst ratings.
When selecting an income generating Fund make sure you opt for the income units and that the yield quoted is sufficient for your needs.
|Fund Name||IA Sector||FMC||Yield||Morningstar
(rel to category)
|Artemis Global Income I Inc||Global Equity Income||1.4016||3.20%||Above average||Buy|
|First State Global Listed Infrastructure B Inc||Global||1.3031||3.41%||Below average||Buy|
|Janus Henderson Strategic Bond I Inc||£ Strategic Bond||0.9840||3.56%||Average||Buy|
|JOHCM UK Equity Income Y Inc||UK Equity Income||1.2800||5.34%||Above average||Buy|
|Threadneedle UK Equity Income ZNI GBP||UK Equity Income||0.9062||4.01%||Average||Buy|