Investment Management Association

Income

If you want to earn a regular income from your fund and are willing to take some risk with your money, you have a choice of fund types.

You could invest in a bond fund, which typically provides a higher rate of interest than what you’d get from a cash deposit account.

Alternatively, you could invest in an equity income fund. These funds invest money in company shares. They aim to pay out a higher than average income to investors. The income is paid out in the form of dividends, usually twice a year.

Mixed asset funds - typically a mixture of bonds and equity - can also be used to give you a regular income.

Read our guide Using funds funds to get an income for more information