INVESTING TIPS: Fund and trust ideas for income investors

INVESTING TIPS: Fund and trust ideas for income investors
News from This is Money:

By This Is Money

Income investing is not just for those who wish to draw a cash return on their portfolio, reinvested dividends are also a great way to build solid growth over time.

If you had invested £100 in the UK stock market 1945 it would have been worth £4,027 at the end of 2011 with dividends reinvested, or £227 without, according to the oft-cited Barclays Equity Gilt study.

Funds and investment trusts are an ideal method for income investing, as by holding a basket of equities or assets they spread risk.

Stacking up: Reinvesting dividends gives investments a turbo boost over time – alternatively income from investing can be drawn by those who need it

The huge number of funds and investment trusts on offer can be confusing though. Fortunately, This is Money’s experts have some ideas to get you started.

They have picked funds and trusts to use as starting points for what will hopefully be a successful income investing career.

Of co…………… continues on This is Money

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Investors, Prepare for Inflation –
News from and Deflation –

Neither an inflationist nor a deflationist be. That, to mangle one well-known quote, sums up the view of some investment professionals who are struggling to make sense of current market conditions.

“We are not currently forecasting a global deflationary environment, but rather an environment where subdued economic growth results in contained inflationary pressure,” said Jeff Witt, director of research at Private Asset Management, Inc. “This view is somewhat contrary to the markets bipolar assessment that we are either going into an inflationary or deflationary spiral.”

According to Witt, the extreme views on inflation stem from the push and pull of various economic conditions prevalent in the global economy. “First, central banks around the world, most notably the Federal Reserve and the European Central Bank, have dramatically increased their balance sheets and the money supply in their respective economies — which is traditionally inflationary.”

The counter balance to this inflationary pressure, however, is the deleveraging in these economies, which Witt said, “results in excess liquidity not being circulated back into the economy and thus having relatively little inflationary impact.”

Another factor pointing to…………… continues on and Deflation –

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