AS WAY Income Cash Trust

Advantages: Well managed, easy withdrawl, easy to understand, good up to date web site
Disadvantages: 1% penalty for withdrawl

...I can reccomend the Murray Extra return Investment Trust 10p income shares. Murray Johnstone are a financial institution specialising in ISA's, Unit Trusts, stocks and shares. I chose to use them as they have an excellent reputation and have consistently returned good dividends for members. I currently have two types of shares with them. This opinion is about their Extra return Investment Trust 10p income shares. Since taking out this option with them in March I have already seen an increase in my investment of 4.5% in just 6 months and it continues to grow. I am very pleased with the way Murray Johnstone manages its funds and they regularly supply reports and updates to members.... Read review

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Advantages: The fund tends to outperform in flat and falling markets, high dividend yield of around 3%, good long term performance and good manager
Disadvantages: Large £2.6 billion in size makes fund less flexible, 5% initial charge, underperforms when growth stocks are fashionable

...is to provide an above average dividend and above average dividend growth because it is in the UK Equity Income sector. The yield on this trust is around 3.16% at the time of writing. I decided to opt to re-invest the dividends because I had seen studies that by doing this returns could be enhanced over the long-term due to a compounding effect. Re-investing dividends over the long-term can also help to reduce the volatility of an investment. INVESCO-Perpetual High Income has been managed by Neil Woodford for around 13 years since its launch in 1988. Neil Woodford is a highly influential fund manager who was involved in releasing the truth about the Biotech stock market disaster British Biotech. I admire the way Neil Woodford has managed this trust by sticking to what he believes in an not going with the crowd. This was apparent when the fund... Read review

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Advantages: A relatively low risk fund, high income yield of almost 6%, below average initial charge, one of the top funds in its sector, low interest rates make bonds attractive
Disadvantages: Bonds underperform when equities outperform, long term performance is modest compared to equity funds

...at a discount from a website like iii or Fidelity Funds network, or you could go through a discount broker that is not online such as Allenbridge group plc. The average charge you pay on a unit trust or OEIC is around 5%. The unit price of the fund has fluctuated in the range of 57p to 63p in the 3 years since its purchase. Rather than opting to take the 6% income paid out by the fund as cash we decided to re-invest the income and buy more units. The idea behind this tactic was to achieve a compounding effect. Because this is a bond fund the income paid out is not classed as a dividend but interest, the drawback of this is that 20% tax is paid rather than the 10% tax you would pay on an equity fund. During the first two years of holding this fund I received complaints about how this fund was going nowhere and not generating any profit. But during... Read review

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