3 income fund ideas to put your cash to work
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Looking for a place for your cash? Here are three income fund ideas.
This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.
Published on 14 November 2023
It was correct at the time of publishing. Our views and any references to tax, investment and pension rules may have changed since then.
We recently looked at cash versus investing in the stock market over the long term, and where to look for opportunities if interest rates start to fall.
The takeaway? With the interest rate cycle seemingly on the turn, cash is no longer king.
Don’t believe it? The top of the rate environment is difficult to call exactly, but it’s likely we’re not far from it.
Some top paying savings accounts have been pulled or closed, and while the central bankers are chanting higher for longer, the market is predicting cuts in 2024.
In a falling rate environment, you want bond funds in your portfolio – witness the near 30-year bond bull run in recent history.
A good active manager can take advantage of market ups and downs. While yields are high, you’re rewarded with income. When rates fall, you get capital growth – though there are no guarantees.
Falling rates also benefit companies as cheaper debt
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