What does income investing involve?

Investor writing

Income investing is an investment strategy that is dedicated to constructing a portfolio that is geared towards generating a regular income. The main goal of an income investment portfolio is to produce a continuous stream of income. This regular income flow can take multiple forms with common examples including dividends, bond yields and interest payments.

A basic portfolio might contain stocks and shares, government bonds, mutual funds and high-interest accounts.

Stocks and property

Stocks that pay out regular dividends to those who hold them can help generate regular returns over an extended period. Real estate is another popular area of incoming investing. This investment type can generate a reliable stream of revenue from rental income. Furthermore, real estate investments deliver certain tax benefits and possibilities for growing capital stock long-term.

Bonds

Many investors feel that government bonds are one of the less risky ways of investing money and generating income. Low risk, they can be attractive options for investors. While corporate bonds work similarly, they carry greater risks, but this is balanced by the potentially greater yields that they can offer.

Mutual funds and savings accounts

Mutual funds generate an income stream via dividends and interest payments. Personal savings accounts also accrue interest and are known for being the safest type of income investments. However, they offer the lowest and slowest rate of returns.

If you need experts in wealth management in Shropshire, we can help. Contact our team at Hartey Wealth Management today to explore income investing further, along with other types of portfolios and asset classes.

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