Suggest a fund for income
Discussion
Spent way too long looking now and getting nowhere. There's so many funds and platforms to choose from I'm actually starting to loose the will to live...
I've got a cautious to medium attitude to risk, want a long term solution when I can park some cash and take a regular income from it without staying awake all night every time the market has a wobble. I definitely need a tracker or manged fund as there's no way I can pick individual investments myself.
Although keeping capital up with inflation would be a bonus I'm prioritizing income over growth and ideally it'll be invested as an ISA to keep tax simple as neither of us has used our allowances this FY and I CBA with faffing about with accounts and tax returns anymore.
Overall big picture is at the moment I'm split roughly 40% in Premium Bonds, 40% in two Santander 123 accounts and 20% in two cash ISAs. I'm considering drip feeding chunks at a time ending up with between half to two thirds in a income fund and splitting the remainder between Premium Bonds mainly to keep Mrs JS sweet, trying a few £k on P2P lending with Assetz to see how that goes and keeping one Santander 123 for unexpected spends and somewhere to feed income to.
Critique, suggestions or comments? Apart from the essential cars, hookers and coke that is.
Cheers Chaps
I've got a cautious to medium attitude to risk, want a long term solution when I can park some cash and take a regular income from it without staying awake all night every time the market has a wobble. I definitely need a tracker or manged fund as there's no way I can pick individual investments myself.
Although keeping capital up with inflation would be a bonus I'm prioritizing income over growth and ideally it'll be invested as an ISA to keep tax simple as neither of us has used our allowances this FY and I CBA with faffing about with accounts and tax returns anymore.
Overall big picture is at the moment I'm split roughly 40% in Premium Bonds, 40% in two Santander 123 accounts and 20% in two cash ISAs. I'm considering drip feeding chunks at a time ending up with between half to two thirds in a income fund and splitting the remainder between Premium Bonds mainly to keep Mrs JS sweet, trying a few £k on P2P lending with Assetz to see how that goes and keeping one Santander 123 for unexpected spends and somewhere to feed income to.
Critique, suggestions or comments? Apart from the essential cars, hookers and coke that is.
Cheers Chaps
Something like Vanguard's high dividend yield ETF:
https://www.vanguardinvestor.co.uk/investments/van...
or a more traditional option like City of London Investment Trust?
Vanguard run their own ISA platform so really easy to implement, but it's not that hard to open an ISA and buy a couple of investment trusts.
https://www.vanguardinvestor.co.uk/investments/van...
or a more traditional option like City of London Investment Trust?
Vanguard run their own ISA platform so really easy to implement, but it's not that hard to open an ISA and buy a couple of investment trusts.
Artemis do a couple of good income.funds, one higher yielding.
If you think about it though a FTSE tracker will yield ~3.4%, I'm not sure that many "income" funds yield significantly higher and of course make higher charges and more concentration means more risk. Also, its my opinion, that investing for income in the hope that its some kind of hedge against a market crash is folly, the higher yielding stocks are some of the most over valued in the market and will not be immune to a correction.
If you think about it though a FTSE tracker will yield ~3.4%, I'm not sure that many "income" funds yield significantly higher and of course make higher charges and more concentration means more risk. Also, its my opinion, that investing for income in the hope that its some kind of hedge against a market crash is folly, the higher yielding stocks are some of the most over valued in the market and will not be immune to a correction.
FredClogs said:
Artemis do a couple of good income.funds, one higher yielding.
If you think about it though a FTSE tracker will yield ~3.4%, I'm not sure that many "income" funds yield significantly higher and of course make higher charges and more concentration means more risk. Also, its my opinion, that investing for income in the hope that its some kind of hedge against a market crash is folly, the higher yielding stocks are some of the most over valued in the market and will not be immune to a correction.
If you look at Artemis high income for example though, it's more bond focused than stocks. If you think about it though a FTSE tracker will yield ~3.4%, I'm not sure that many "income" funds yield significantly higher and of course make higher charges and more concentration means more risk. Also, its my opinion, that investing for income in the hope that its some kind of hedge against a market crash is folly, the higher yielding stocks are some of the most over valued in the market and will not be immune to a correction.
FredClogs said:
the higher yielding stocks are some of the most over valued in the market and will not be immune to a correction.
I agree. Even without a correction I expect many of the bond proxy stocks to underperform the broad market from here. Their prices have been pushed too high by yield hungry investors.If you want a single-fund, perhaps take a look at the modern multi-strategy risk targeted income funds run by the likes of Invesco Perpetual and Aviva Investors. They have access to wide range of income sources and are run with a hawk-eyed focus on diversification and volatility.
https://www.invescoperpetual.co.uk/uk/products/inv...
https://www.avivainvestors.com/en-gb/adviser/inves...
Edited by WindyCommon on Monday 18th December 11:19
xeny said:
or a more traditional option like City of London Investment Trust?
I'd second this suggestion. City of London has increased its dividend every year for 50 years. Hard to argue with from a steady income perspective. Check out the AIC website's dividend heroes:https://www.theaic.co.uk/aic/news/press-releases/a...
You can also use their "find and compare" tool to filter on specific sectors, to find other UK Equity Income trusts or look at different sectors.
1.65% is not a fortune but its certainly not cheap.
Go on the HL website and check out their wealth 150 list, probably the best research tools out there are TH hl website, morning star website, best invest website and monevator for passive investing.... That one above looks a bit shonky to me.
Go on the HL website and check out their wealth 150 list, probably the best research tools out there are TH hl website, morning star website, best invest website and monevator for passive investing.... That one above looks a bit shonky to me.
Thanks for all the replies Chaps. Much appreciated.
Still finding all the terms and facts and figures and options way too much of a headfull and even if I was confident with my choice of fund I'm nervous about attempting to do stuff online like transferring cash and opening and monitoring accounts so have a bit reluctantly decided to dump the lot in a IFAs lap in the new year for them to sort.
I know that's gonna cost but at least I'll get some sleep...
Still finding all the terms and facts and figures and options way too much of a headfull and even if I was confident with my choice of fund I'm nervous about attempting to do stuff online like transferring cash and opening and monitoring accounts so have a bit reluctantly decided to dump the lot in a IFAs lap in the new year for them to sort.
I know that's gonna cost but at least I'll get some sleep...
You could go for the Hargreaves Lansdown High Income Fund:-
http://www.hl.co.uk/funds/fund-discounts,-prices--...
It’s like a ‘fund of funds’ so the risk is spread. `I’ve held them for some time and have done very well.
http://www.hl.co.uk/funds/fund-discounts,-prices--...
It’s like a ‘fund of funds’ so the risk is spread. `I’ve held them for some time and have done very well.
It's not altogether impossible that will cost you more than any conceivable ineptitude on your part achieves, especially if you're talking about an amount that will fit in an individual premium bond allowance.
You've had a range of suggestions in this discussion.
I'd suggest writing them out in a table, look at the "expected" income, the fee structure, and look on google finance, morningstar or similar to see how volatile they are over time (i.e. can you sleep at night). Anything that has a decent return will fall in value during a panic like 2008, that's the nature of the beast - if you can't accept that, investing is probably a bad choice for you.
Remember that overall return is higher where risk is higher, and assess overall return by adding the fee to the expected or historic customer return. If you're going to take risk, it makes more sense that you're much more highly rewarded for it than the company running the investment - it's your money on the line after all.
You're looking at maybe 4 hours work, and if you count the overall return on that work, they may be the best rewarded 4 hours work of your life.
You've had a range of suggestions in this discussion.
I'd suggest writing them out in a table, look at the "expected" income, the fee structure, and look on google finance, morningstar or similar to see how volatile they are over time (i.e. can you sleep at night). Anything that has a decent return will fall in value during a panic like 2008, that's the nature of the beast - if you can't accept that, investing is probably a bad choice for you.
Remember that overall return is higher where risk is higher, and assess overall return by adding the fee to the expected or historic customer return. If you're going to take risk, it makes more sense that you're much more highly rewarded for it than the company running the investment - it's your money on the line after all.
You're looking at maybe 4 hours work, and if you count the overall return on that work, they may be the best rewarded 4 hours work of your life.
bad company said:
It’s like a ‘fund of funds’ so the risk is spread. `I’ve held them for some time and have done very well.
It's only been going 20 months? At the most, you'll have made 12% plus a 2.5% divi - does this sound familiar?
By my reckoning that's significantly worse than a FTSE all share tracker would have achieved.
Looking at http://www.hl.co.uk/funds/fund-discounts,-prices--...
says 10.31% over the past year, with ~4% dividends.
says 10.31% over the past year, with ~4% dividends.
xeny said:
Looking at http://www.hl.co.uk/funds/fund-discounts,-prices--...
says 10.31% over the past year, with ~4% dividends.
You've made the mistake of looking at it as a total return rather than on price alone. Also the 1.29% charge is taken from those divis...plus the portfolio charge (if I'm not mistaken). says 10.31% over the past year, with ~4% dividends.
All is not as it seems...so interested to hear bad company's experience as he seems very happy.
I don't think so - if I look at http://www.hl.co.uk/funds/fund-discounts,-prices--... and specify 1 year as the graph time span it eyeballs at just over 10%, so I think the quoted total return excludes dividends.
Yes, I agree that in a sane world "total return" for a fund would be reported as change in total of price + dividends, but that doesn't appear to be the case here.
In my very limited experience dividends are by convention quoted after fees (which in this case I think are stupidly high), although I admit I don't see a specific statement either way.
Yes, I agree that in a sane world "total return" for a fund would be reported as change in total of price + dividends, but that doesn't appear to be the case here.
In my very limited experience dividends are by convention quoted after fees (which in this case I think are stupidly high), although I admit I don't see a specific statement either way.
xeny said:
I don't think so - if I look at http://www.hl.co.uk/funds/fund-discounts,-prices--... and specify 1 year as the graph time span it eyeballs at just over 10%, so I think the quoted total return excludes dividends.
Yes, I agree that in a sane world "total return" for a fund would be reported as change in total of price + dividends, but that doesn't appear to be the case here.
In my very limited experience dividends are by convention quoted after fees (which in this case I think are stupidly high), although I admit I don't see a specific statement either way.
Now go and select 'price' rather than 'total return. Yes, I agree that in a sane world "total return" for a fund would be reported as change in total of price + dividends, but that doesn't appear to be the case here.
In my very limited experience dividends are by convention quoted after fees (which in this case I think are stupidly high), although I admit I don't see a specific statement either way.
Fees are taken from divi.
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