India model portfolio for growing income with medium risk

Who is it for: 
  • 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.
What it looks like: 
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
Why were these funds selected: 

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.

Where to get it: 

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Timeline: 

2016

  • 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.

2015

  • 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.

2014

2013

  • Sell Trojan Income

    Soft closed to new investors.

  • Buy Liontrust Income

    Appears well suited to benefit from rising equity markets.

2012

  • Buy Bankers

    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.

Last updated: 
16 January 2017