Safest income fund at HL

sebtomato

Hi,

I have an account with HL and I have been trying to identify which income fund would be the safest for my money, while still delivering a 2% interest/yield (net of fees).

HL doesn't provide the ability to search the available funds by risk ratings...

Linton

https://www.trustnet.com/ allows you to sort by Yield and “Risk Score”. Most funds on Trustnet should be available on HL.

george4064

If your goal is to achieve a yield of 2% pa net of fees return, then have you considered any of the fixed rate accounts available?

More info here: https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/?utm_expid=.LvfWtwTKSr6V7RyAFVS-Dw.0&utm_referrer=#fixedsavings

From a quick glance I can see you can get your target and more with 3 year fixes and beyond.

Reaper

Are you wanting to safeguard the capital? There are few investments that do that, savings would be better.

However you can go for some lower risk options where the income has been reliable over a long period of time, particularly via Investment Trusts. However if you are not familiar with them you should read up as they are a bit different to OIEC funds and have differing risks.

For example Bankers Investment Trust currently pays 2.07% and has increased that every year without fail for 52 years. More importantly they increased it by more than inflation for the last two decades.

The capital value of the fund also grew. Of course the dividend is not guaranteed to keep going up and the fund value could fall rather than rise.

They count as a share rather than a fund if you want to check the HL charges. I'm not familiar with them.

BTW I don't currently hold the fund and it was only an example anyway. A list of investment trusts with a good long term dividend payment record can be found here:
https://www.theaic.co.uk/aic/news/press-releases/investment-company-dividend-heroes