Best Investments For Monthly Income – 5 Top Picks In 2020
With UK interest rates at an all time low, we have selected our 5 top picks for income investment seekers where income is paid monthly.
1. Artemis High Income Fund
If you are looking for a high income yield and prepared to accept higher volatility then this fund may fit the bill. With a focus on high yield bonds and shares, the fund manager Alex Ralph is an experienced bond investor who has a flexible approach to seeking out the best income opportunities.
This fund features in Hargreaves Lansdowns Top 50 selected funds with a current distribution yield of 4.76% (As at 30/8/2020) with income paid monthly to investors. The fund has an annual management charge of 0.72%.
Invest From
£25 per month or £100 single
Fund
High Income
Income Yield
4.55%*
Income Paid Monthly
ISA, SIPP & Direct Investment
Why we like it: If you are looking for a high income yield and prepared to accept higher volatility then this fund may fit the bill. With a focus on high yield bonds and shares, the fund manager is an experienced bond investor who has a flexible approach to seeking out the best income opportunities. This fund is available via the Hargreaves Lansdown investment platform. Capital at risk.
*Distribution yield correct as at 28/2/2021
Important information: The value of investments can go down as well as up so you may get back less than you invested. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser. Tax treatment depends on individual circumstances and all tax rules may change in the future.
Income Paid Monthly
This fund is available via:
Hargreaves Lansdown investment platform (Offer – the annual management charge is discounted to 0.56%)
2. Invesco Monthly Income
This fund aims to deliver a high level of income with some potential for capital growth over the long term. The fund managers Paul Read and Paul Causer have a excellent long term track record in delivering returns. The fund invests in up to 70% to 80% in bonds and up to 20% of the fund can be invested in high yielding UK shares.
The current distribution yield of the fund is 5.80% (As at 30/4/2020) with income paid monthly to investors. The fund has an annual management charge of 0.72%.
Invest From
£25 per month or £100 single
Fund
Monthly Income Plus
Income Yield
5.12%*
Income Paid Monthly
ISA, SIPP & Direct Investment
Our view: For income seekers looking for monthly income this fund has an excellent long term track record. Managed by Paul Read and Paul Causer the fund invests in a mixture of corporate bonds and high yielding UK company shares. The fund objective is to deliver high income with the potential for some capital growth. This fund is available via the Hargreaves Lansdown investment platform.
*Distribution yield correct as at 31/8/2020
Important information: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.
Income Paid Monthly
This fund is available via:
Hargreaves Lansdown investment platform (Offer- the annual management charge is discounted to 0.67%)
3. HL Multi-Manager High Income Fund
In a world of ultra low interest rates the Hargreaves Multi Manager High Income fund aims to deliver a high monthly income to clients by blending different types of funds and moving between different areas of the market when more attractive opportunities emerge. HL also aim to grow this income payment over time and therefore may invest in higher risk smaller companies they believe offer great potential for long term capital growth.
The current distribution yield of the fund is 5.03% (As at 31/5/2020) with income paid monthly to investors. The fund has an annual management charge of 1.27%.
Invest From
£25 per month or £100 single
Fund
Multi Manager High Income
Income Yield
3.37%*
Income Paid Monthly
ISA, SIPP & Direct Investment
Why we like it: In a world of ultra low interest rates the Hargreaves Multi Manager High Income fund aims to deliver a high monthly income to clients by blending different types of funds and moving between different areas of the market when more attractive opportunities emerge. HL also aim to grow this income payment over time and therefore may invest in higher risk smaller companies they believe offer great potential for long term capital growth. Capital at risk.
*Historic yield correct as at March 31st 2021. Variable & not a reliable indicator of future performance.
Important information: The value of investments can go down as well as up so you may get back less than you invested. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser. Tax treatment depends on individual circumstances and all tax rules may change in the future.
Income Paid Monthly
The fund is available via:
Hargreaves Lansdown investment platform
4. Fidelity Moneybuilder Income Fund
This fund has a conservative approach to bond investing. The focus is on quality companies that are in good financial health and generate enough cash to keep paying bondholders. Aims to provide a relatively steady income and a small amount of growth, without taking excessive risks. It could help diversify a portfolio focused on shares, or be used as a way to limit volatility during tougher times for stock and bond markets.
The current distribution yield of the fund is 3.20% (As at 30/4/2020) with income paid monthly to investors. The fund has an annual management charge of 0.56%.
Invest From
£25 per month or £100 single
Fund
Money Builder
Income Yield
3.42%*
Income Paid Monthly
ISA, SIPP & Direct Investment
Why we like it: A fund with a conservative approach to bond investing. The focus is on quality companies that are in good financial health and generate enough cash to keep paying bondholders. Aims to provide a relatively steady income and a small amount of growth, without taking excessive risks. It could help diversify a portfolio focused on shares, or be used as a way to limit volatility during tougher times for stock and bond markets. Capital at risk. This fund is available via the Hargreaves Lansdown investment platform.
*Distribution yield correct as at 21/4/2021
Important information: The value of investments can go down as well as up so you may get back less than you invested. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser. Tax treatment depends on individual circumstances and all tax rules may change in the future.
Income Paid Monthly
The fund is available via:
Hargreaves Lansdown investment platform (Offer – the annual management charge is discounted to 0.36%)
5. Meteor FTSE Quarterly Contingent Income Plan
Ok this plan does not pay monthly income, but we have included it as it offers an attractive alternative option for income seekers offering a defined return. The Meteor Quarterly Contingent Income Plan offers investors a 1.55% income payment each quarter, provided the value of the FTSE 100 Index at the end of the quarter has not fallen by more than 20% below its level at the start of the plan – that’s a potential 6.20% income each year. If the Index closes below this level, no income will be paid for that quarter.
The plan has a maximum term of 10 years, but also offers the opportunity to receive your initial capital back in full before then. This will happen if the FTSE has risen 5% or more at the end of each quarter (from year 2 onwards), in which case you will receive your income payment for that quarter, along with a full return of your initial investment – this means your investment ends early.
With income high up on the agenda for many investors, the ability to receive up to 6.20% per year, even if the FTSE falls by up to 20%, might be worth a closer look.
Please note the current plan has an application deadline of 24th June 2020.
Important Risk Information:
This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall as well as rise and you may not get back the full amount invested. The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.
Different types of investment carry different levels of risk and may not be suitable for all investors. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you are in any doubt as to the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.
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