One problem investors come up against when picking a portfolio in this area is working out what they are actually likely to get in cash from an investment.
The yield figures that are advertised on factsheets and on fund supermarkets can’t simply be taken at face value.
They are calculated as the percentage paid out in income of the share price over the previous year and are therefore only a snapshot in time.
Total return share price figures, which are usually those quoted when performance is discussed, include the accumulation of income and the share price appreciation.
This gives a useful idea of how much an investor can make overall, but it is useless when it comes to working out how much cash you are going to be left with in your pocket.
To find out how much the leading equity income funds stand to leave in your pocket, download the latest issue of FE Investazine here. It also contains a number of other useful articles aimed at helping you boost your investment income.
