The Bank of England (BoE) recently raised interest rates for the first time in a decade, but this was only a modest increase from a very low base, meaning that investors still cannot rely on cash to get a decent income. If you have an investment horizon of at least five years and can go up the risk curve, then an equity income fund is likely to provide a better income. And JOHCM UK Equity Income (GB00B95FCK64), which has a good long-term performance record and an attractive yield of over 4 per cent, looks like a particularly good option.
Invests in companies growing dividends
Higher yield than FTSE All-Share
Value income approach
Small- and mid-cap tilt
Higher volatility than peers
Periods of underperformance
This fund beats the FTSE All-Share index over one, three and five years, and over 10 years has made almost double the return of the index and the Investment Association (IA) UK Equity Income sector average.