Insight UK Equity Income Booster - new launch
As interest rates approach zero and dividends are being cut across many sectors, it is becoming very challenging for investors to find attractive levels of income.The new Insight UK Equity Income Booster Fund, managed by Tim Rees and Richard Lloyd,
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Buy your fund from Hargreaves Lansdown and save up to 5.5% on the initial fund charges.
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aims to offer investors a high level of income in the region of 8% each year (variable and not guaranteed). The managers will do this using a two-pronged strategy. First, they will look to generate some of this income from a portfolio of 40 to 50 high yielding larger company shares, primarily from the UK market.The second strategy utilises alternative investment tools aiming to boost the income. The yield on the fund can be enhanced by the use of ‘covered call options’ on a portion of the fund’s holdings (see the fund factsheet for more information). Covered call options basically aim to provide an additional income in return for giving up some potential capital growth.This means that the fund’s capital return is likely to be lower than the market, particularly in a rapidly rising market. However, the aim of the fund is to provide investors with an income higher than the market. As it has exposure to the stock market, this fund should be considered higher risk and a long term horizon is necessary.The Insight UK Equity Income Booster Fund is not on the Wealth 150 list of our favourite funds in each sector.Meera Patel, Senior Analyst> Key Features of the Insight UK Equity Income Booster Fund
