The ability of investment funds and trusts to provide investors with a regular and growing income is often underrated. Many investors still regard them as a way of accumulating capital, rather than as a means by which they can use capital to supplement their income. Yet for many of the 2019 Money Observer Rated Funds, income generation is one of the primary objectives; and historically they have proved they can deliver.
What a stinker 2018 proved to be. After making a number of record highs during the first half of the year, stocks turned tail late summer and conspired to deliver the fourth quarter from hell. The new calendar year has started brightly for interactive investor's pair of winter portfolios, but that won't be reflected in December's ghastly figures.
Even long-term investors occasionally take advantage of a short-term opportunity in the stock market. Mike Deverell at Equilibrium, manager of our long-term growth portfolio, sprang into action in February when the FTSE 100 index slipped.
It’s said that there are three things a wise man has to fear: the sea in a storm, a night with no moon and the anger of a gentle man. I would like to add a fourth: the uncontrolled interference and meddling of politicians, bureaucrats and bankers in the world’s economies.
Inflation, standing at 2.5 per cent for March, may be on the wane after peaking in November at 3.1 per cent – but it has not gone away, and it is potentially very damaging for investors. It will gradually erode the value of your capital and income, so anyone investing for the long term who needs a regular income really needs to look for investments with the potential to maintain the value of their capital and preferably grow their income payments as well. This is where some of the Money Observer Rated Funds can help.
Interactive Investor editor Lee Wild reports on the two share portfolios with the strongest historical track records through the winter months.
A damaging market correction is looking a distinct possibility; rather than suffer losses building up your cash pile may be better.