India model portfolio for growing income with medium risk
- Investors looking for a growing income from their capital over the long term, and the prospect of capital growth.
- However, investors must be able to afford for their income to fall and to lose some of their capital under a worst case scenario.
- May be suitable for retired investors looking for long term income and capital growth during their retirement.
- May also appeal to investors approaching retirement who can opt to reinvest their dividends until required.
|Fund||Role in portfolio|
|Artemis Global Income||Invests in strong companies globally for income, has low UK content.||View Factsheet|
|Invesco Perpetual Income||Solid UK equity income performer.||View Factsheet|
|Bankers||Although classified as a global growth trust, it has a long record of annual dividend increases.||View Factsheet|
|Newton Global Income||Good long term record of investing for income using company’s global thematic approach.||View Factsheet|
|Premier Multi Asset Monthly Income||Fund of funds invested across a broad range of asset classes.||View Factsheet|
|Foreign & Colonial||A broadly diversified global trust with a long history of dividend growth.||View Factsheet|
|Threadneedle UK Equity Income||A stalwart UK equity income fund.||View Factsheet|
The vast majority of this portfolio is invested in equities in order to achieve an increasing income and capital growth. However, some asset diversification is provided by Premier Multi Asset Monthly Income which also pays a regular monthly income. Its fund of funds approach is another source of diversification. Other core holdings in the portfolio are the middle-of-the-road UK equity income funds, Invesco Perpetual Income and Threadneedle UK Equity Income, both steady past performers. The remainder of the portfolio is invested in global funds. There are two global equity income funds - Artemis Global Income and Newton Global Income - with solid track records, and two global growth investment trusts – Bankers and Foreign & Colonial. Bankers pays a quarterly income. Although its yield is modest at below 3 per cent, it has a long record of growing its annual dividend. Foreign & Colonial also aims to grow its dividend year on year, and offers broad diversification.
* Charts show bid-to-bid performance with income reinvested.
Please note that past performance is not a guide to future performance. Fund performance data does not take into account fees and expenses which are specific to individual plans.
Please be aware of the risks involved. Money Observer does not provide investment advice. You should choose investments to suit your personal circumstances and attitude to risk. If you are at all unsure you should seek advice.
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Sell Fidelity Strategic Bond
Buy Premier Multi Asset Monthly Income
More scope for growing income across a range of asset classes.
Sell Scottish Mortgage
A relatively high risk global choice with a low yield.
Buy Foreign & Colonial
Greater diversification helps reduce risk, while the trust also has a higher yield and history of dividend growth.
Sell M&G Optimal Income
Falling yield has made fund less attractive for income seekers.
Buy Fidelity Strategic Bond
Provides greater flexibility to invest in different types of bonds.
Sell Liontrust Income
Change of objective from UK to global income and disappointing returns.
Buy Artemis Global Income
Good international diversification with low exposure to the UK.
Sell Trojan Income
Soft closed to new investors.
Buy Liontrust Income
Appears well suited to benefit from rising equity markets.
Classified as global growth trust but has long history of dividend increases. Aims for dividend growth above inflation.
Buy Invesco Perpetual Income
Solid UK equity income performer.
Buy M&G Optimal Income
Strategic, go-anywhere bond fund.
Buy Newton Global Income
Provides international diversification and benefits from solid past performance record.
Buy Scottish Mortgage
A high conviction global trust to provide growth and diversity.
Buy Threadneedle UK Equity Income
Solid UK equity income performer.
Buy Trojan Income
Aims to provide steady growth and income by investing in reliable companies.