Help ISA monthly income advice! ballpark figure!

lineman_uk

Hi, i recently just invested 5K in an invesco growth monthly income ISA, after much nagging from my father months ago, can any one tell me a ball park figure on how much i might be getting,
I only ask this because my dad is asking how much i'm getting because i told him I did it ages ago to get him off my back!! very sad i know at 31!! thats why i just need a ball park figure,

thanks,

deemy2004

Whats the exact name of the fund.

When did you exactly invest or at what price did you purchase the units.

lineman_uk

hi, thanks for the quick reply, the investment is called "invesco Perpetual Monthly Income Plus Fund" and the investment is 5000 pounds and it is an ISA,
and i have only JUST, done the paperwork and sent it off,

the main question is that i told my dad who was bothering me about it, I did it months ago, just to get him off my back,
he keeps asking me what my monthly income is, so I just want a ballpark figure to palm him off with really,
sorry if this seems convuluted this is a link to its pdf file http://investor1.invescoperpetual.co.uk/invesco/default/container/utility/ecdsfactsheetpdf/0,5668,401821_7711_691,00.pdf
or to invesco perpetual website http://investor1.invescoperpetual.co.uk

thanks, I am really desperate to get this info

cheers

deemy2004

The funds current yield is 5.57% which suggest an annual GROSS income of approx £278 on £5k. Therefore your mothly income would roughly be £23

It looks like a very safe low risk unit trust, thats shown capital growth of 9% over the last 12 months.

lineman_uk

thanks your the best!

dunstonh

It looks like a very safe low risk unit trust, thats shown capital growth of 9% over the last 12 months.

On a scale of 1-10 of risk (1 lowest, 10 highest), this fund would be 6. Making it above average for risk. Certainly not a very safe low risk OEIC. However, when compared to a FTSE100/250 tracker, it is lower than that.

£5000 all in one fund is not ideal if this is your only investment. Inv Perp have a very good range of funds and you could have picked 5 funds with them (all in the same investment/statement) or upto 10 funds if you used a fund supermarket. Having all your eggs in one basket with equities is where most people go wrong and suffer when there is a period of negative returns.

deemy2004

dunstonh wrote:

On a scale of 1-10 of risk (1 lowest, 10 highest), this fund would be 6. Making it above average for risk. Certainly not a very safe low risk OEIC. However, when compared to a FTSE100/250 tracker, it is lower than that.

On trustnet its got a riskgrade of 13.62
The range is 0 to 1000, where 100 is typical risk of global equity markets. Hence its a very low risk, i.e. Us Goverment bonds have a riskgrade of around 35.

Typical levels for RiskGrades for different asset classes


Out of 1947 Unit Trust and OECS's the Fund ranks 86th in risk. i.e. 4.4% - Thus by any definition it is very low risk. Offcourse not the lowest risk i.e. 1 out of 1947. But 86th is pretty low.

hobbesandco

dunstonh, where did you get your risk rating figures from? What constitutes a risk rating of 1 and what constitutes 10?

dunstonh

advice companies have to recommend funds based on the attitude to risk matching the risk profile of the client. Therefore all retail funds are risk graded. A lot of this is interpretation and not quite as simple as deemy suggests. You can get funds in the same sector which are lower risk than other funds in that same sector.

The risk grading used by IFA companies will vary a little around the different companies as it depends on their research and how they interpret that information. Often companies themselves will grade their own funds. The 1 to 10 scale is one of the common methods of doing it. It has the advantage of keeping things simple. i.e. 1 low risk, 10 high risk and where is the fund on that scale. However, at times it can be limiting as 1-10 isnt really enough numbers to risk all funds adequatly.

On "our" rating scale this particular fund is higher risk, in its own sector, than the other funds. Most of this sector seem to come out on 5.

One thing to be wary of is that one persons low risk, is another persons high risk. So, when someone comments it is a low risk fund, in the context of global emerging market funds, it certainly is.