Fish around for better returns

The name of the game with income funds is to provide regular (monthly or quarterly) payments that meet or exceed a manager’s investment target. They are aimed at investors who require more income than what can be achieved through bank term deposits yet with minimal risk.

This is not easy to accomplish. For years the Reserve Bank cash rate has continued its creep towards zero, meaning interest rates are depressing for investors, and it’s left them constantly asking themselves what can be done to find better sources of income.

Increasing your portfolio allocation to shares or other higher-risk asset classes is one way, but what’s concerning is