Equity Income funds

artha

What views do people have on holding UK equity income or UK equity income and growth funds (as ACC option) within a pure capital gain portfolio? Do they offer anything that funds selected from the UK all companies sector don't

RayWolfe

Companies that pay decent dividends are generally larger and more stable than ones that don't. The pure growth play can be very rewarding but with more risk. So, my two pen'th says, have some equity income funds in a growth portfolio to offset some of the riskier plays. I read recently (where? Gawd knows!) that UK equity income has beaten All Companies over the past ten years.
Anyway, I like companies that have to think about cash flow and rewarding it's investors!

artha

RayWolfe wrote: »

Companies that pay decent dividends are generally larger and more stable than ones that don't. The pure growth play can be very rewarding but with more risk. So, my two pen'th says, have some equity income funds in a growth portfolio to offset some of the riskier plays. I read recently (where? Gawd knows!) that UK equity income has beaten All Companies over the past ten years.
Anyway, I like companies that have to think about cash flow and rewarding it's investors!

When I was putting together a portfolio over the first half of 2009 I had no real experience or guidance to rely on, apart from here of course and the H-L site.
I "learnt?" that names like Neil Woodford were as important in fund selection as the sector or asset. I therefore included things like IP High Income, but this was the first to go in my clear out in favour of much higher risk overseas funds with my reading of where things were going and my targets.

Having achieved my target in 12 months, instead of the 3 years I originally postulated was possible ,I'm now undergoing a major overhaul and was wondering if I should revisit the equity income/income@growth space for defensive growth.

Like you I've read somewhere recently that the sector funds(as ACC) can outperform more aggressive growth funds and are projected to do in the expected 2010 climate.

jep49

I also have a quite large portfolio that i have built up since last year when intrest rates dropped. I find it a whole new world now i am actually doing something with my money. I tend to spread out too much and then get rid of the underperformers. Its been a rocky ride and i have panicked sometimes and sold , only to regret it. I have an isa which i tend not to touch, and an F&S account i play with. All with H&L. I am hoping i dont get burnt.

artha

jep49 wrote: »

I also have a quite large portfolio that i have built up since last year when intrest rates dropped. I find it a whole new world now i am actually doing something with my money. I tend to spread out too much and then get rid of the underperformers. Its been a rocky ride and i have panicked sometimes and sold , only to regret it. I have an isa which i tend not to touch, and an F&S account i play with. All with H&L. I am hoping i dont get burnt.

I can empathise with your situation. I'm a lot wiser than 12 months ago and hopefully a better investor,having made some mistakes, but still have some way to go and a lot to learn. Fortunately, against a background of rising markets, I've so far been sheltered from those mistakes costing me very much.

jep49

So where do you think we go from here. Will things carry on up, especially emerging and resources? Where do you think is the place to be now?

jep49

What do you think of ETFs . i am tempted to get into some. Been considering natural gas as its low now. Gold and oil are another, but who knows.