AJ Bell Income funds

Earn an income from investing. The 4% yield isn’t guaranteed and could fluctuate.

The AJ Bell Income funds are designed to make investing pay. They invest in high-yield holdings to maintain, or grow, their capital value while generating an income. The target yield is 4% a year – but keep in mind this could fluctuate, and isn't guaranteed.

If you want, you can choose to have the income paid to you in cash. Payment is monthly, to give you a regular income stream, but the amount will vary depending on the dividends the fund has generated that month. Or instead, you can choose to automatically reinvest all income back into the fund. This could be the right option for you if you’re investing for the longer term and want to focus on dividend-paying companies.

Whichever you choose, there’s no tax to pay as long as you hold the fund in a SIPP or ISA.

  • Target 4% annual income – paid monthly
  • Aims to hold, or grow, capital value over time
  • Managed by our investment experts
  • Designed to be held for the longer term - over 5 years

Ryan Hughes, Head of Active Portfolios introduces the AJ Bell Income funds.

In making the AJ Bell Income funds available to you we are not giving you personal advice. Before you invest you need to make sure that you understand all the risks and are comfortable that this investment is right for you. The value of your investments and the income from them could go down as well as up. Make sure you read the KIID before investing to understand the full picture.

Choose your fund

There are two AJ Bell Income funds. Take a look below to help you decide which is right for you.

  • AJ Bell Income fund



    Invest now

    Is this fund right for me?

    The Income fund is right for you if you want to keep the market’s ups and downs to a minimum, while targeting a consistent income. The fund invests in steady assets such as bonds (to earn interest payments) and aggressive assets such as shares (to earn dividends). The aim is to deliver an income of around 4% a year, while holding its capital value.

    If you’d like this income paid to you in cash every month, choose ‘income’ units. Or if you’d like the income reinvested into the fund automatically, choose ‘accumulation’ units instead.

    Projected fund performance

    Likely high, medium and low returns for £10,000 invested in the Income fund for 20 years. The graph shows the capital return for the accumulation shares - the capital return for the income shares will be lower.

     

    This chart shows the range of returns we would normally expect the fund to make. Whilst we have been careful in the assumptions used in this forecast, it is only a forecast and cannot be relied on as a true indicator of future performance. Read more about the charts and assumptions made.

    Fund charges

    There are no dealing charges for buying any of the AJ Bell Income funds. The fee paid to AJ Bell Investments for running the funds is 0.15%. Other charges such as the costs paid to the ETF and fund manager, and fund admin costs are added to this to make up the total fund costs - the OCF (or ongoing charges figure) which is capped at 1.0%.

    Our normal custody charges apply. Read more on our charges and rates.

    Start investing now – open an account with AJ Bell Youinvest and add this fund to your or set up a regular investment.

  • AJ Bell Income and Growth fund



    Invest now

    Is this fund right for me?

    The Income & Growth fund is right for you if you want to protect your investment from the effects of inflation, while targeting a consistent income. The fund invests mostly in aggressive assets such as shares (to earn dividends), and sparingly in steady assets such as bonds (to earn interest payments). The aim is to deliver an income of around 4% a year, as well as modest growth in line with inflation – with some ups and downs along the way.

    If you’d like this income paid to you in cash every month, choose ‘income’ units. Or if you’d like the income reinvested into the fund automatically, choose ‘accumulation’ units instead.

    Projected fund performance

    Likely high, medium and low returns for £10,000 invested in the Income fund for 20 years. The graph shows the capital return for the accumulation shares - the capital return for the income shares will be lower.

     

    This chart shows the range of returns we would normally expect the fund to make. Whilst we have been careful in the assumptions used in this forecast, it is only a forecast and cannot be relied on as a true indicator of future performance. Read more about the charts and assumptions made.

    Fund charges

    There are no dealing charges for buying any of the AJ Bell Income funds. The fee paid to AJ Bell Investments for running the funds is 0.15%. Other charges such as the costs paid to the ETF and fund manager, and fund admin costs are added to this to make up the total fund costs - the OCF (or ongoing charges figure) which is capped at 1.0%.

    Our normal custody charges apply. Read more on our charges and rates.

    Start investing now – open an account with AJ Bell Youinvest and add this fund to your or set up a regular investment.