If you are an income seeker who is looking for high yields, see below for a selection of funds that offer regular income payment options.
Why we like it: The Hargreaves Multi Manager High Income fund aims to deliver a high monthly income to clients by blending different types of funds and moving between different areas of the market when more attractive opportunities emerge. HL also aim to grow this income payment over time and therefore may invest in higher risk smaller companies they believe offer great potential for long term capital growth.
This fund is available via: Hargreaves Lansdown investment platform »
*Historic yield as at 31/12/2020
Important: The value of your investments can rise as well as fall. You may get back less than you invested. If you’re unsure, we recommend you ask for independent advice.
Why we like it: Getting paid a regular income is a priority for many investors. Whether you're in retirement, or want to boost your existing income, an equity income fund could be right for you. Even if you do not need income now, you can opt to reinvest it to boost capital growth. An emphasis on dividends and dividend growth makes this fund a more traditional UK equity income fund, in our view, so it could help form the foundation of an income portfolio.
This fund is available via: Hargreaves Lansdown investment platform »
*Historic yield correct as at 31/10/2020
Important information: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.
Why we like it: If you are looking for a high income yield this fund is suitable for long term investors drawing regular income from their portfolios. With a focus on high yield bonds and shares, the fund manager is an experienced bond investor who has a flexible approach to seeking out the best income opportunities.
This fund is available via: Interactive Investor investment platform »
*Historic yield as at 30/9/2020
Important information: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.
Why we like it: A fund with a conservative approach to bond investing. The focus is on quality companies that are in good financial health and generate enough cash to keep paying bondholders. Aims to provide a relatively steady income and a small amount of growth, without taking excessive risks. It could help diversify a portfolio focused on shares, or be used as a way to limit volatility during tougher times for stock and bond markets.
This fund is available via: Fidelity investment platform »
*Distribution Yield as at 30/11/2020
Important information: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.
- Counterparty: BNP Paribas
- Term: Up to 8 Years
With the current record low interest rate environment, income is high up on the agenda for many investors and so the ability to receive 6.0% per year even if the FTSE falls by up to 15%, is certainly worth a closer look.
Important: Structured investment plans are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. There is a risk of losing some or all of your initial investment due to the performance of the underlying investment. There is also a risk that the company backing the plan known as the Counterparty may be unable to repay your initial investment and any returns stated.
- Potential quarterly income: 1.5% (equivalent to 6.0% annually)
- Income paid even if FTSE 100 falls by 15%
- Alternative option also available returning up to 5.5% pa if the FTSE doesn't drop by more than 20%
- Potential to kick out quarterly from year 2 onwards
- Available for ISA, ISA transfers and direct investments
- Capital is at risk if the FTSE 100 Index has fallen by more than 35% at maturity from it's initial level, in which case your initial investment will reduce by 1% for each 1% fall
- Minimum investment £5,000
- An arrangement fee applies to this plan
- If you withdraw your money during the plan you may get back less than you originally invested
Important Information: Structured investment plans are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. There is a risk of losing some or all of your initial investment due to the performance of the underlying investment. There is also a risk that the company backing the plan known as the Counterparty may be unable to repay your initial investment and any returns stated.