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Compare Fund Supermarket ISAs /

Compare High Yield Income Fund ISAs

Select the best high yield income fund ISA to make the most of this year's tax free allowance.

Investment ISAs put your capital at risk & you may get back less than you originally invested

Moneybuilder Income

from Fidelity

Allows ISA Transfers
Regular Savings
  • Fund Choice: Popular corporate bond fund that pays a monthly income. Manager Sajid Vaid believes investment grade (high quality) company bonds may be the ‘sweet spot’ in the fixed income market, delivering modest income while keeping risks in check. Capital at risk.
  • Invest From: £25 pm

Monthly Distribution

from Artemis

Allows ISA Transfers
Regular Savings
  • Fund Choice: High income yield fund suitable for long term investors drawing regular monthly income from their portfolios. Capital at risk.
  • Invest From: £25 pm

Multi Manager High Income

from Hargreaves Lansdown

Allows ISA Transfers
Regular Savings
  • Fund Choice: HL blend their favourite equity income funds to provide investors an investment which aims to deliver long term returns & reliable monthly income. Capital at risk.
  • Invest From: From £25

Listed Equity Income

from AVIVA Investors

Allows ISA Transfers
Regular Savings
  • Fund Choice: Aims to provide a dividend yield above the FTSE All-Share Index. Invests in UK equities judged to offer high yield, above average prospects of dividend growth and long-term capital growth. Income paid twice yearly. Capital at risk.
  • Invest From: £25 pm

Property Income

from Picton

Allows ISA Transfers
Regular Savings
  • Fund Choice: This Real Estate Investment Trust which invests in UK commercial property pays investors a quarterly dividend. Capital at risk.
  • Invest From: £25 pm

UK Ethical Income

from Unicorn

Allows ISA Transfers
Regular Savings
  • Fund Choice: Actively managed fund that aims to provide an income by investing in UK companies which meets ethical guidelines. Capital at risk.
  • Invest From: £25 pm

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.

Sam Hodgson
Edited by Sam Hodgson - ISA.co.uk
Important Risk Information:

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website aims to provide information to help you make your own informed decisions. It does not provide personal advice based on your circumstances. If you are unsure of how suitable an investment is for you, please seek personal advice.