Best Fixed Income Funds
Compare Best Fixed Income Funds
"The income fund selection at Fair Investment Company is based on extensive research from independent research company OBSR. They use a diversified research approach, which includes strength of investment process, clearly defined investment objectives and past performance. All of the funds are available at 0.00% initial charge, via our Fair Investment Fund Supermarket."
Oliver Roylance-Smith , Head of Investments and Savings
|Fund Manager||Fund||Fund Manager Initial Charge¹||AMC³||Income Yield*||Select Fund°||Fact Sheet||How to Invest|
|Kames High Yield Bond||0%||0.75%||4.99%||Factsheet||Apply 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 Income||0%||0.75%||5.43%||Factsheet||Apply 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 Plus||0%||0.63%||4.46%||Factsheet||Apply 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 Fund||0%||0.75%||3.50%||Factsheet||Apply 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 Income||0%||0.75%||3.7%||Factsheet||Apply 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 Portfolio||0%||0.75%||3.10%||Factsheet||Apply 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 Dividend||0%||0.75%||3.27%||Factsheet||Apply 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 Income||0%||0.75%||2.44%||Factsheet||Apply 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.
What is a fixed income fund?
Regardless of what is happening in the UK economy, one of the most frequent demands put on our capital is to provide us with income. Fixed income funds are funds that invest in fixed interest securities such as corporate bonds and gilts. The funds themselves invest in a diversified portfolio of corporate bonds or gilts, issued by different companies and with a wide range of interest rates and redemption dates. Income investment funds range from a lower risk fund investing in government bonds, through to strategic bond funds, which invest across a range of different government and corporate bonds, and equity funds. Fair Investment Company can help you find the best fixed income funds for your situation – just take a look at the table above.
How do fixed income funds work?
The fund managers of fixed income funds may acquire corporate bonds and gilts when they are first issued or alternatively buy them on the second hand market. In addition, the bonds can be held to redemption at which time the original capital is repaid to the fund or alternatively, the bonds can be sold on the second hand market. As a result of this ever changing portfolio, the capital value and interest receivable from fixed interest funds is not actually fixed. The “fixed income” relates to the fact that the fund will hold fixed income assets. Interest payments can be received monthly, quarterly, half yearly or annually depending upon the individual fund, so the frequency of income payment if something to take into account when choosing the best fixed income fund for you.
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.