Compare Income Fund ISAs

Income fund ISAs allow you to invest your ISA allowance into investment funds designed to provide a level of income. Income fund ISAs may also provide opportunities for capital growth as well as paying income at set intervals. The 2014/15 ISA limit is set at £11,880 for a stocks and shares ISA and up to half of this (£5,940) can be invested in a Cash ISA.  

If you are an income seeker there are a wide range of income fund options available for your ISA. See our table below for a range of our selected best income fund ISA options:

Select Income Funds
Fund ManagerFundFund Manager Initial Charge¹AMC³Income Yield*Select Fund°Fact SheetHow to Invest
Kames High Yield Bond0%0.75%4.99%yesFactsheetApply Now >
Income Paid Monthly. The primary investment objective is to maximise total return(income plus capital) by investing in a portfolio of predominately high yield bonds, selected investment grade bonds and cash. The fund may hold sterling and other currency denominated bonds hedged back to sterling. The fund may also invest in deposits, money market instruments, derivative instruments and forward transactions. See latest fund factsheet for details.
Newton Asian Income0%0.75%5.43%yesFactsheetApply Now >
Income Paid Quarterly.The objective of the Sub-Fund is to achieve income together with long-term capital growth predominantly through investments in securities in Asia Pacific ex Japan (including Australia & New Zealand) region. The Sub-Fund may also invest in collective investment schemes. See latest fund factsheet for details.
Invesco Perpetual Monthly Income Plus0%0.63%4.46%yesFactsheetApply Now >
Income Paid Monthly. Popular income fund that aims to achieve a high level of income whilst seeking to maximise total return through investing in high yielding corporate and Government bonds, together with UK equities. See latest fund factsheet for details.
Woodford Equity Income Fund0%0.75%3.50%yesFactsheetApply Now >
Our selected partner for investing in Neil Woodford's Equity Income fund is Barclays Stockbrokers, via their INVESTMENT ISA for new ISAs and ISA transfers, or their MARKETMASTER® ACCOUNT for non-ISA investments. Income Paid Quarterly.The fund’s investment objective is to provide investors with long-term appreciation through investing in stocks primarily listed on the UK stock exchanges. Up to 20% may be invested in international companies. The income objective is 10% higher than the FTSE All Share Index yield with an anticipated annual yield of 4.0%.
Artemis Income0%0.75%3.7%yesFactsheetApply Now >
Income Paid Twice Yearly. This fund aims to provide an increasing income and capital growth from investing mainly in ordinary shares, preference shares, convertible bonds and fixed-interest securities in the UK. We will not be restricted in our choice of investments, either by the size of the company, the industry it trades in, or the geographical split of the portfolio. See latest fund factsheet for details.
Jupiter Merlin Income Portfolio0%0.75%3.10%yesFactsheetApply Now >
To achieve a high and rising income with some potential for capital growth by investing predominantly in unit trusts, OEICs, Exchange Traded Funds and other collective investment schemes across several management groups. The underlying funds invest in equities, fixed interest stocks, commodities and property, principally in the UK. See latest fund factsheet for details.
M&G Global Dividend0%0.75%3.27%yesFactsheetApply Now >
Income Paid Quarterly. The Fund aims to deliver a dividend yield above the market average, by investing mainly in a range of global equities. The Fund aims to grow distributions over the long-term whilst also maximising total return (the combination of income and growth of capital). See latest fund factsheet for details.
M&G Optimal Income0%0.75%2.44%yesFactsheetApply Now >
Income Paid Twice Yearly.The fund aims to provide a total return to investors based on exposure to optimal income streams in investment markets. The fund invests across a broad range of fixed income assets according to where the fund manager identifies value. See latest fund factsheet for details.

*Current Income Yields are Gross, Variable and Not Guaranteed as at 17/10/13 - Yields are rounded down to one decimal place - See latest Fund Factsheet for details.

³AMC is the Annual Management Charge applied by the Fund Manager. 

°Select Fund - See how our funds are selected

 

Bonds: To provide the potential for overall returns these funds invest in bonds, also known as fixed interest securities. This is achieved by receiving regular interest on loans to companies or governments. There is a chance the bond issuer could fall into financial difficulty and will not be able to pay the interest or the loan back, which could result in a fall in your investment returns. Bonds can also be sensitive to trends in interest rate movements and if interest rates go up, the returns on your investment are likely to fall as bonds can become less attractive. On the other hand, if interest rates fall, bonds are likely to become more attractive and your investment returns increase.

Select Income Funds - High Yield Bonds
Fund ManagerFundFund Manager Initial Charge¹AMC³Income Yield*Select Fund°Fact SheetHow to Invest
Aberdeen High Yield Bond0%0.50%6.77%yesFactsheetApply Now >
Income Paid Monthly. Attractive level of income with the opportunity for some long-term capital return by investing in non-investment grade debt and debt related securities issued by companies, governments, government related bodies and supranational institutions domiciled or active in the UK or Europe. See latest fund factsheet for details.
Threadneedle High Yield Bond 0%0.60%5.70%yesFactsheetApply Now >
Income Paid Monthly. Principally invests in higher risk UK and international fixed interest securities to achieve a high level of income which is paid on a monthly basis. See latest fund factsheet for details.
Kames High Yield Bond0%0.75%4.99%yesFactsheetApply Now >
Income Paid Monthly. The primary investment objective is to maximise total return(income plus capital) by investing in a portfolio of predominately high yield bonds, selected investment grade bonds and cash. The fund may hold sterling and other currency denominated bonds hedged back to sterling. The fund may also invest in deposits, money market instruments, derivative instruments and forward transactions. See latest fund factsheet for details.

*Current Income Yields are Gross, Variable and Not Guaranteed as at 28/2/14 - See Fund Factsheet for latest details.

³AMC is the Annual Management Charge applied by the Fund Manager. 

°Select Fund - See how our funds are selected 

 

High Yield Bonds: These funds invests in riskier bonds, known as sub-investment grade bonds. These bonds pay higher interest rates, to try to provide more attractive income returns. To achieve this, greater risk is taken as the companies are more likely to miss payments or not repay the loan, resulting in the returns on your investment falling.

Select Income Funds - Strategic Bonds
Fund ManagerFundFund Manager Initial Charge¹AMC³Income Yield*Select Fund°Fact SheetHow to Invest
Henderson Preference and Bond 0%0.60%5.00%yesFactsheetApply Now >
Income Paid Quarterly To provide a return by investing primarily in sterling denominated preference shares, Government securities, corporate bonds, Eurobonds and other bonds. See latest fund factsheet for details.
Legal & General Dynamic Bond Trust0%0.60%4.90%yesFactsheetApply Now >
Income Paid Quarterly. The fund aims to generate an attractive return from fixed income markets investing in investment grade bonds, high yield, gilts and cash and uses derivatives extensively to manage the fund's position and risk profile. See latest fund factsheet for details.
Invesco Perpetual Monthly Income Plus0%0.63%4.46%yesFactsheetApply Now >
Income Paid Monthly. Popular income fund that aims to achieve a high level of income whilst seeking to maximise total return through investing in high yielding corporate and Government bonds, together with UK equities. See latest fund factsheet for details.
JP Morgan Strategic Bond0%0.50%3.31%yesFactsheetApply Now >
Income Paid Quarterly. To maximise returns by investing primarily in a global portfolio of fixed and floating rate debt securities. The fund manager aims to outperform cash by an average of 3% pa (net) over the market cycle by investing dynamically across the fixed income sector. See latest fund factsheet for details.
M&G Optimal Income0%0.75%2.44%yesFactsheetApply Now >
Income Paid Twice Yearly.The fund aims to provide a total return to investors based on exposure to optimal income streams in investment markets. The fund invests across a broad range of fixed income assets according to where the fund manager identifies value. See latest fund factsheet for details.

*Current Income Yields are Gross, Variable and Not Guaranteed as at 28/2/14 - See latest Fund Factsheet for details.

³AMC is the Annual Management Charge applied by the Fund Manager. 

°Select Fund - See how our funds are selected 

 

Bonds: To provide the potential for overall returns these funds invest in bonds, also known as fixed interest securities. This is achieved by receiving regular interest on loans to companies or governments. There is a chance the bond issuer could fall into financial difficulty and will not be able to pay the interest or the loan back, which could result in a fall in your investment returns. Bonds can also be sensitive to trends in interest rate movements and if interest rates go up, the returns on your investment are likely to fall as bonds can become less attractive. On the other hand, if interest rates fall, bonds are likely to become more attractive and your investment returns increase.

 Important Risk Information:

This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall as well as rise and you may not get back the full amount invested. The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.

Different types of investment carry different levels of risk and may not be suitable for all investors. Please ensure that you read the Important Risk Information for further details. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you are in any doubt as to the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.