jupiter/invesco/fidelity help

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
8 replies 1.3K views
riz1riz1 Forumite
39 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
i have 1 tracker isa. L&G uk index

and am looking to spread out options

invesco perpetual income fun

jupiter high income fund(what is an income fund over a growth fund?)

fidelity special situations

any views or other reccomendations,

Replies

  • SeanWSeanW Forumite
    322 Posts
    An fund aiming for income aims to invest in investments which will provide an income, perhaps also with the potential for capital growth, such investments may include equities with high dividend yields. A growth fund would aim to invest in investments which will provide potential for capital growth.

    In terms of funds which have INCome units or ACCumulation units, Income will have a dividend, which you could take or reinvest into more units, whereas Accumulation units will increase to reflect such income into the fund.

    The Invesco Perpetual Income fund has both types of units available.

    The only comment about your selection there is you're almost entirely invested within the UK.
  • ReportInvestorReportInvestor Forumite
    3.6K Posts
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    A growth fund will tend to invest in shares where profits are expected to rise more steeply.

    As a result these companies will tend to have lower yields (pay lower dividends) because the City thinks decent dividends will come further down the line once the company has established itself further.

    Income funds tend to invest in companies where the dividends are higher. (The average on the FTSE100 is about 3%).

    Confusingly, income funds have tended to "grow" more recently and historically and should not be avoided by investors who want overall growth.

    There are various reasons for this that it's not worth going into at length, but I'm a great believer that having to pay out a decent dividend is a great way to concentrate the mind of the management.

    The key to long term stock market performance is reinvested dividends.
  • dunstonhdunstonh Forumite
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    Confusingly, income funds have tended to "grow" more recently and historically and should not be avoided by investors who want overall growth.

    Athough in a diversified portfolio, having the income reinvested to buy more units can be beneficial. Having a bit of both does no harm as different periods will see income funds perform better than growth and vice versa.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • riz1riz1 Forumite
    39 Posts
    so betweek invesco and jupiter what wuoldu lot go for?

    and what other good fund is there outside u.k? worht investing in?
  • tom188tom188 Forumite
    2.3K Posts
    SeanW wrote:

    Not that past performance should be seen as a guide to future performance.

    Different funds in a sector can often have quite different returns dependent on how the fund managers investment processes react to differing economic climates.
  • dunstonhdunstonh Forumite
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    different funds in the same sector can have different investment aims as well. One may be more volatile than the other giving it better performance during growth periods but suffer more when going down. The more volatile one would appear in the top 10 during the good days but the other during the bad days.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • SeanWSeanW Forumite
    322 Posts
    :T
    Yes of course, but on little information, its about the best I could suggest, rather than flip a coin.
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