Where to buy high interest and low risk income based funds

Voyager2002

jimjames said:

If you are determined to put money overseas then we probably won't be able to influence you but there are plenty of options paying reasonable levels of income that are UK based and paid in sterling. You appear to not be worried about risk so why not look at investment trusts? They're mainstream, traded on LSE and no currency or scam risks.

Many investment trusts hold securities in other countries and so movements in exchange rates can affect their NAVs, dividend amounts and hence the price of each unit. And no scam risk? One of my investments was in an IT set up by Neil Woodford: the loss of perhaps 70 per cent of what I paid certainly feels like a scam.

ratechaser

tedcharse said:

Linton said:

Sadly this does not mean that these investments are yielding around 6%.  They would have yielded around 6% when issued but since then their price will have risen so that the effective yield is much lower.

Thanks Linton for your clear explanation of the yield calculation.

My friend has bought the US treasury fund for the past 12 months. The fund paid him 0.5% to 0.6% of dividend per month and it also has the Morning Star rating of 3 Stars.

However, it can only be bought through an Asia bank e.g. HSBC (Singapore and Japan). Do you think the fund will go burst easily, like the Lehman Brother funds invested in FNMA bonds!!

I have tried unsuccessfully to find a good income based fund from Vanguard and Post office which pays more than 3% per annum, so I have to take the risk to open an overseas bank account!!

Oh alright I'll bite. I really shouldn't, but anyway...

I would dearly dearly love to see the detail of a US Treasury based fund that:

1) actually pays 6-7.2% PA net. And by that I mean yield rather than coupon
2) Can only be bought through a 'foreign' bank. 

I mean, if it was a little known bank in an exotic regulation-light location then maybe, but HSBC in Singapore...

Rather a lot of Chinese Whispers going on here I suspect, but I await clarification with baited breath...

csgohan4

Your friend isn't part of a ponzi scheme are they?

Alexland

jimjames said:

https://www.hl.co.uk/news/articles/archive/the-ten-investment-trusts-with-the-best-income-records

That article is about 5 years old now and some of those HL suggested trusts have done rather badly for example BAF has managed to turn £10k into £5k over the period. AIC have a more up to date list and with ITs like any actively managed investment it's worth doing some pretty deep research and reflection before buying.

https://www.theaic.co.uk/income-finder/dividend-heroes