DWINDLING yields combined with improved offerings from deposit accounts may put the breaks on the flow of money into the Equity Income sector, according to Justin Modray at Bestinvest.
Typical yields in equity income funds are currently lower than the best savings funds (around 3.2pc against 5.5pc) so there is a real possibility that investors may start to look elsewhere. Modray accepts that some of the shine may have come off what has been in recent years an incredibly attractive sector for investors however he urges no knee jerk reaction to what may be a short term blip. “Cash is certainly looking more attractive given recent basic rate rises and cash ISAs are certainly going to be more appealing given the combination of more attractive rates and the tax-free benefi...
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