Investment goals

Your investment goals for income

You’ve worked hard, hard enough to invest and build a portfolio for the future.

Let’s talk about risk

The value of your investments can go down as well as up, and you may not get back what you originally invested.

How investing for income could help you

You’ve worked hard, hard enough to invest and build a portfolio for the future. But as time passes by, you may now be beginning to think about taking things easier. As such it’s important to plan ahead.

  • Help with monthly bills
  • Help with school/university fees
  • Pay towards your dream holiday

 

Getting started

A range of asset classes offer income potential and it makes sense to spread (or diversify) your risk across these as their income generating abilities vary during different economic climates.

  • Equities – dividends from shares can generate an attractive level of income and provide scope for capital appreciation as well.
  • Commercial property – rental income means that investments in office, retail and industrial properties can provide investors with a reliable and attractive income.

 

Generating a regular income

Although savings accounts can provide an income, interest rates may remain unattractive. If you’re comfortable that stock market investments present a higher risk than savings accounts, it makes sense to see what opportunities are available.

Investing for income simply means that you’re interested in putting some of the potential returns that your investment generates throughout its life to good use. This could be to assist with day-to-day outgoings or it could be to support regular payments, such as school or university fees.

At BMO, we provide a number of options for those investors who are looking to generate income.
 

Investment trust income

It’s worth noting that in contrast to open-ended funds – which are obliged to pass on all the dividends they receive in any given year – some investment trusts are able to maintain payouts to investors as they operate a revenue reserve.

By keeping back some of the income they generate in the good years they can bolster dividend payments in the bad. Over the longer term, the income from shares has proven to be a significant component of overall total returns.

Before you invest, please be aware that the yield these options produce isn’t guaranteed and can fluctuate – sometimes significantly.

The value of shares and the income from them is not guaranteed and can fall as well as rise due to stock market movements. Yields are calculated on a historic basis using the actual dividends paid during a company’s last financial year and the closing share price as at the end of the relevant month. Past performance is not a guide to future performance. When you sell your shares, you might get back less than you originally invested. Change in rates of exchange may have an adverse effect on the value, price or income of investments.

Why invest for income?
  • Investing for income could benefit those who are looking for that extra bit of money now and in the future.
  • Investing for income can help supplement a pension during retirement or pay for school/university fees.
View our full range of Investment Trusts

Including latest fund manager updates, reports and accounts and latest performance. 8 of our 10 Investment Trusts are designed to deliver growth.

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Let’s talk about risk

The value of your investments can go down as well as up, and you may not get back what you originally invested.

Glossary

Confused? Our handy glossary can help explain investing terms.

This section of the website is directed at persons who are located in the UK. Please read our full terms and conditions and the relevant Key Information Documents (“KID”) before proceeding with any investment product referred to on this website. Nothing on this website is, or is intended to be, advice to buy or sell any investments. If you are at all unsure whether an investment product will meet your individual needs, please seek advice.