Beware the high yield chasers

Income has never been so important as it is today, now that interest rates are only 0.5% and gilt yields are falling. Equity income is returning to favour in this environment, but the key is in picking the right manager. The focus should be on fund managers that aim to grow income over time rather than those that chase high yields at any cost. Investors looking for income and are willing to take the equity risk should consider funds like the Newton Higher Income Fund. This is a traditional equity income fund which adopts a strict yield discipline. Companies in the portfolio must yield mor...