Our Investment Basics mini-series is back with more information about the investment options you might consider when developing your personal financial plan.

So far, the series has covered investment funds and growth funds - this time, we’ll turn our attention to income funds.

What are Income Funds?

Income funds are a type of investment fund which aim to pay out a reliable sum of money. Fund Managers target investment towards companies with a track record of paying generous, dependable dividends at more than the rate of inflation, thereby providing a return on investment. There is also the potential for capital growth to complement the income, however this is not guaranteed.

Often, income funds will be set up to re-invest the income generated rather than paying it out directly, which should potentially lead to an increase in the value of your investment over time.

When designing client portfolios, it is important that different strategies are considered that can complement each other which can help to manage risk. With over £300 million under management, McCrea’s team of investment professionals have helped countless clients identify the investment strategy that’s right for them. Why not contact us today for a free no-obligation consultation on how investments might contribute to your financial future?

Next Up: Tracker Funds