What is a High Yield Income Fund ISA?
A high yield income fund ISA is a way of using your ISA allowance with an aim to provide you with a high yield tax-efficient income payment on your investment or savings. Income may be paid on a quarterly, semi-annual or annual basis, so you can choose an option to suit your savings goals.
High yield income fund ISAs offer the potential for higher income than from cash savings although you do need to be comfortable with the associated investment risk. To obtain the higher yield, fund managers will typically invest in lower grade bonds provided by companies where there is a higher risk of default.
You are permitted to invest all or part of your annual tax-free amount in to an investment ISA or in to a cash ISA. Alternately, you can divide your allowance between the two types of ISA as you wish
What Can a High Yield Income Fund Offer?
Investing in a high yield income fund ISA can offer:
Regular income - Many funds offer either monthly or quarterly income options. If you invest in an ISA, income can be distributed to you tax free. If you prefer, some funds allow you to accumulate the income within the fund by buying more units, in order to provide capital growth.
Diversification - a typical corporate bond fund will invest in at least 40 different institutions or more, reducing the risk to investors in the event of default by a bond issuer.
Potential for capital growth - this type of fund can provide capital growth at a lower level of risk than equity investment.
Fund manager expertise - Our Select Fund range of bond funds for income have been assessed by independent research company Morningstar OBSR and all feature at least a Gold or Silver rating.
Why Invest Through our Fund Supermarket?
There are several reasons why our Fund Supermarket might be right for you:
1.Low charges - Many of the funds available to you can be accessed at no initial charge. What's more, many annual management charges offer a discount of up to 0.20% per year.
2.Great choice of funds - Over 1500 funds to choose from including leading UK income fund managers such as Invesco Perpetual, Jupiter and Fidelity.
3.Manage your funds online - Our Fund Supermarket service provides you with online access so you can monitor your investment funds 24/7, wherever you are.
4.Customer Services Team - We are here to help you if you have any queries.
Can I Transfer Existing High Yield Income Fund ISAs into your Fund Supermarket?
Transfers are permitted and are straightforward to complete. Contact a member of staff for more details.
