Income fund ISAs give you the opportunity to invest your ISA allowance in plan that offers the maximum potential for regular income, without paying tax on any returns you make. Compare income fund ISAs using our Fund Supermarket and find out how you could save on charges.
Why we like it: If you are looking for a high income yield and prepared to accept higher volatility then this fund may fit the bill. 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 the Hargreaves Lansdown investment platform.
*Distribution yield as at 30/4/2020
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: 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 the Hargreaves Lansdown investment platform.
*Historic yield correct as at 31/5/2020
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: 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.
*Correct as at 30/4/2020
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: A low cost ethical fund (0.25% pa ongoing charge) with the objective of the Fund is to provide growth by tracking the performance of the FTSE 350 Index (the “Index”), excluding shares of companies whose business does not meet a range of ethical and environmental guidelines (“ethical screening methodology”) determined by an external agency chosen by the Manager. This fund is available through the Hargreaves Lansdown Platform.
*Historic yield correct as at 22/5/2020
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 the Fidelity investment platform.
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.