India model portfolio - growing income, medium risk

Income: Growing
Risk: Medium
Last updated: June 2, 2020

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.

Portfolio breakdown

Artemis Global Income

Invests in strong companies globally for income, has low UK content.

Man GLG UK Income

Solid UK equity income performer.

Bankers

Although classified as a global growth trust, it has a long record of annual dividend increases.

Henderson International Income Trust

Excludes the UK and aims to grow its dividends over the long term.

Royal London Sterling Extra Yield

Highly diverse fund with almost 200 holdings. 

Fidelity Asian Dividend

Unconstrained concentrated portfolio of high-quality cash-generative businesses.

Troy Income & Growth

Steadily outperformed its peer group

Why these funds were selected

Read our latest
Model Portfolio
Quarterly Review

The majority of this portfolio is invested in equities in order to achieve an increasing income and capital growth. Core holdings are the middle-of-the-road UK equity income funds, Man GLG UK Income and Threadneedle UK Equity Income, both steady past performers. Global equity income funds Artemis Global Income and Henderson International Income both have solid track records, while global growth investment trust 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. 

In autumn 2018, big changes were made to the portfolio to make room for Asian equity income exposure with the entry of Guinness Asian Equity Income. However, in January 2020 we replaced the Guinness fund with rival Fidelity Asian Dividend which boasts better returns. The portfolio now has exposure to UK equities, which is a little lower than we would like at just over 16%, so we are trimming the holding in Artemis Global by 5% to 12%. The bond pick is Royal London Sterling Extra Yield, which further diversifies the portfolio and keeps a lid on overall risk after the Asian equity addition.

Model Portfolio India performance 2 June 2020

  Total return (%) over:          
  1 mth 6 mths 1 year 3 yrs 5 yrs Inception  
  % % % % % %
India 3.0 -10.2 -3.4 2.4 26.5 115.3
FTSE All Share 3.4 -16.0 -11.1 -8.3 6.9 62.7
FTSE UK Private Investor Income 2.8 0.3 5.2 11.9 31.4 76.7

 

Timeline

2020

  • Sell
    GUINNESS ASIAN EQUITY INCOME
    January 2020

    Good returns but replaced by Fidelity Asian Dividend which has performed even better.

  • Buy
    FIDELITY ASIAN DIVIDEND
    January 2020

    Takes the place of Guinness Asian Equity Income

2019

  • Buy
    TROY INCOME & GROWTH
    January 2019

    Outperformed peer group over one, three, five and 10 years.

  • Sell
    THREADNEEDLE UK EQUITY INCOME
    January 2019

    Replaced by Troy Income & Growth.

2018

  • Sell
    Seneca Global Income & Growth Trust
    October 2018

    Swapped for a defensive asset in the form of a bond fund.

  • Buy
    Royal London Sterling Extra Yield
    October 2018

    A consistently good performer. The bond exposure further diversifies the portfolio.

  • Sell
    Foreign & Colonial IT
    October 2018

    Removed to boost the portfolio's yield and make room for Asian equity income exposure.

  • Buy
    Guinness Asian Equity Income
    October 2018

    To add Asian equity exposure.

  • Sell
    INVESCO PERPETUAL INCOME
    January 2018
  • Buy
    MAN GLG UK INCOME
    January 2018

    Adds more potential exposure to income shares.

  • Sell
    PREMIER MULTI ASSET MONTHLY INCOME
    January 2018
  • Buy
    SENECA GLOBAL INCOME & GROWTH TRUST
    January 2018

    Will help the portfolio to grow its income over time.

  • Sell
    NEWTON GLOBAL INCOME
    January 2018
  • Buy
    HENDERSON INTERNATIONAL INCOME
    January 2018

    Aims to grow its dividends over the long term, tallying with the aims of the portfolio.

2016

  • Sell
    SCOTTISH MORTGAGE
    July 2016

    A relatively high risk global choice with a low yield.

  • Buy
    FOREIGN & COLONIAL
    July 2016

    Greater diversification helps reduce risk, while the trust also has a higher yield and history of dividend growth.

  • Sell
    FIDELITY STRATEGIC BOND
    January 2016
  • Buy
    PREMIER MULTI ASSET MONTHLY INCOME
    January 2016

    More scope for growing income across a range of asset classes.

2015

  • Sell
    M&G OPTIMAL INCOME
    April 2015

    Falling yield has made fund less attractive for income seekers.

  • Buy
    FIDELITY STRATEGIC BOND
    April 2015

    Provides greater flexibility to invest in different types of bonds.

  • Sell
    LIONTRUST INCOME
    January 2015

    Change of objective from UK to global income and disappointing returns.

  • Buy
    ARTEMIS GLOBAL INCOME
    January 2015

    Good international diversification with low exposure to the UK.

2013

  • Sell
    TROJAN INCOME
    April 2013

    Soft closed to new investors.

  • Buy
    LIONTRUST INCOME
    April 2013

    Appears well suited to benefit from rising equity markets.

2012

  • Buy
    BANKERS
    January 2012

    Classified as global growth trust but has long history of dividend increases. Aims for dividend growth above inflation.

  • Buy
    INVESCO PERPETUAL INCOME
    January 2012

    Solid UK equity income performer.

  • Buy
    M&G OPTIMAL INCOME
    January 2012

    Strategic, go-anywhere bond fund.

  • Buy
    NEWTON GLOBAL INCOME
    January 2012

    Provides international diversification and benefits from solid past performance record.

  • Buy
    SCOTTISH MORTGAGE
    January 2012

    A high conviction global trust to provide growth and diversity.

  • Buy
    THREADNEEDLE UK EQUITY INCOME
    January 2012

    Solid UK equity income performer.

  • Buy
    TROJAN INCOME
    January 2012

    Aims to provide steady growth and income by investing in reliable companies.