Investment for income

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  • Audaxer
    Audaxer Posts: 3,506
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    Drp8713 wrote: »
    50% Murray International and 50% City of London would give you diversification, some long term capital growth, and yields nearly 4%.
    But if you mean the whole portfolio of £150k split between just these two ITs, I'm not sure that is diverse enough and probably too risky for many.
  • Thrugelmir
    Thrugelmir Posts: 89,546
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    firestone wrote: »
    The person who wrote the story earning royalties :)

    Or own the publishing house.......
  • Stirfry
    Stirfry Posts: 114
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    Drp8713 wrote: »
    50% Murray International and 50% City of London would give you diversification, some long term capital growth, and yields nearly 4%.

    I have just increased my portfolio with a lump sum and purchased Murray Int as part of my holdings. It was chosen for income, but since the latest buy it has continued to drop in price. Still time in the Market and all that.
  • Linton
    Linton Posts: 17,061
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    Murray Int's yield seems a bit low to me for an income portfolio. A couple of other IT suggestions from my portfolio for diversification outside the FTSE350 that provide a better income with asset growth:

    Princess (Private Equity)
    European Assets Trust - EAT . Interesting as it pays some of its dividend from investment growth.

    Also there are a number of direct property companies/REITs with a reasonable income

    Looking at OEICs/UTs, Schroder Asian Income Maximiser has a good dividend and some capital growth.
  • Drp8713
    Drp8713 Posts: 902
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    Audaxer wrote: »
    But if you mean the whole portfolio of £150k split between just these two ITs, I'm not sure that is diverse enough and probably too risky for many.

    20 shares is enough to reduce the standard deviation of your portfolio right down.

    These two IT's currently have 185 holdings between them.

    I consider them diversified enough.
  • Thrugelmir
    Thrugelmir Posts: 89,546
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    Linton wrote: »
    European Assets Trust - EAT . Interesting as it pays some of its dividend from investment growth.

    IT's are now allowed to pay dividends out of capital rather revenue reserves. To do so. Holdings are realised into cash. So great in a period of rising markets. Such as we've had in the past decade. I sold out of EAT once the discount narrowed and the €-£ exchange rate fell. Currently trading at a premium. Which suggests more challenging in the future to maintain dividend levels in £ terms.
  • chrisgg
    chrisgg Posts: 68 Forumite
    If you're after some high yielding bond funds look into Liontrust Monthly Income and Royal London Shirt Duration Global High Yield.
  • Audaxer
    Audaxer Posts: 3,506
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    Drp8713 wrote: »
    20 shares is enough to reduce the standard deviation of your portfolio right down.

    These two IT's currently have 185 holdings between them.

    I consider them diversified enough.
    That's fair comment, although another way of looking at it is that unlike two diverse funds, you would be a shareholder of just two companies - the two ITs. I like the two ITs and would have them as part of a portfolio, but I still think it would be a bit risky to put the whole £150k into just those two ITs.
  • Pobby
    Pobby Posts: 5,438 Forumite
    My worry is this. I have twice invested just before a crash. This was in the days when I was working. It might be sais we so much debt around and the length between the last crash, may be we are due a new crash soon?
  • OldMusicGuy
    OldMusicGuy Posts: 1,752
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    Pobby wrote: »
    My worry is this. I have twice invested just before a crash. This was in the days when I was working. It might be sais we so much debt around and the length between the last crash, may be we are due a new crash soon?
    Better you don't invest, it might have been your fault the last two times! ;)

    I can guarantee there will be another crash, the only things I can't say are a) when it will be or b) how bad it will be when it happens. It is pointless trying to time the market (plenty of threads on here about that). You need to decide if you want to lose out on what is left of this bull run or play it safe and stay conservative for now.

    You need to decide about your long term investment goals compared to your short term needs. For example, I am retiring next year so am holding about 30% of my investments in cash and near-cash investments. But I still have a big chunk invested that I plan to leave untouched for 10 to 15 years so it can ride out any short term downturns and provide a combination of income and capital growth.
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