Looking for income funds to invest in? Income funds for retirees can be found in the form of multi asset funds. Multi-Asset funds are a great way to build a diversified portfolio of income producing assets. You can invest across multiple asset classes such as equities, bonds and real estate using a single fund. These funds often give you a strategic edge on the markets. Which is needed to maintain a consistent income stream in retirement. As a result, they make great income funds for retirees.
Investing into different asset classes can give you a healthy mixture of growth and income in retirement. Multi-asset income funds invest in a mixture of government and cooperate bonds. Which provide a stable and reliable coupon (interest) payment.
Multi-Asset income funds may also enhance your income with High Yield Bonds, Real estate and Dividend paying stocks. If you are looking for the best performing fixed income funds from the likes of Fidelity then look no further. Here is my personal shortlist of income funds.
Why Invest In Multi-Asset Income Funds?
This allows your to build attractive returns whilst managing the volatility of the market. You don’t want to see wild swings in your portfolio value, but you do need your portfolio to have longevity. Below are 6 multi-asset income funds that make my personal shortlist. These are the multi-asset income funds that I would consider investing in to maintain a consistent income.
You’ll see why I have hand-selected them when you compare their performance to the MSCI World Index over the last year. Over 2022, the bear market took hold over global markets. Pushing asset prices down. These funds outperformed these global equity markets and continued to provide an income to investors.
Disclaimer: This is not financial advice and you are responsible for your own investing decisions. When investing, capital is at risk. This article may also contain affiliate links.
MyMap 3 Fund D GBP Income Fund
BlackRock’s MyMap range invests through lower-cost exchange-traded funds (ETF) and index-tracking funds, as well as making some smaller investments in exchange-traded commodity (ETC) funds.
The MyMap3 funds is a volatility managed fund. This means it uses the asset classes above (i.e., bonds, property), to manage returns within specified volatility parameters. Whilst this is an actively managed fund it has an ongoing fee of just 0.17%!
The aim of the Fund is to provide a 3% to 6% return on investment over a period of five consecutive years from an increase on investment from either the value of assets held or the income received from those assets. In seeking to achieve its investment objective, the Fund will seek to invest in a variety of asset classes globally, including equity securities (i.e. shares), which will range between 20% and 40%.
The fund may also invest in Equity -related securities (i.e. other investments whose value is related to equities), fixed income securities (such as corporate bonds and government bonds), fixed income-related securities (i.e. other investments whose value is related to debt), cash and assets that can be turned into cash quickly. According to the fund factsheet (November 2022) 70.48% of the fund is invested in fixed income assets primarily based in North America and Europe.
Conclusion: What Income Funds To Invest In?
Everyone can make money in a bull market. Bears, on the other hand can certainly sort the wheat from the chaff. Whilst portfolio values of many multi-asset income funds have fallen, they have aimed to deliver a consistent income (yield) of 3% to 6%. They’ve outperformed global equity benchmarks indicating that there is a strong investment strategy.
The historical yields of these income funds from Fidelity, Blackrock etc., indicate that there is substance behind these income funds. These are the funds that definitely make my personal shortlist in terms of the best performing fixed income funds. They offer a mixture of robust growth and income which is a key fundamental of income funds for retirees.
These funds are not a direct suggestion for what you should invest in. They do however, offer a perspective on the different type of low cost income funds to invest in for retirees. This is in the sense that they are low cost income funds and offer an alternative to global equity income funds or specialist bond funds. They are a highly strategic and diversified method of investing in fixed income assets from around the world. They are therefore a highly diversified approach to investing in retirement.
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