Bond funds
Bonds are loans taken out by governments (gilts) and companies (corporate bonds) when they need to raise money. In return for these loans, they pay investors interest, and it is this interest that makes up the income.
Bond funds can offer investors monthly income, portfolio diversification, and liquidity, and provide a lower risk element to to a diversified portfolio. Each fund is categorised by the type of bonds in which it invests, so there should be one that suits your investment needs.
MoneyBuilder Income Fund
Income bond funds tend to be lower risk compared with some equity funds. This fund aims to invest mainly in sterling fixed-interest securities to help keep risk under control.
Sterling Bond
This fund aims to produce attractive returns with lower risk, mainly by investing in investment grade bonds. There is some exposure to high-yielding bonds.
Extra Income
This fund incorporates high-yield bonds as well as investment-grade bonds. High-yield bonds can potentially add 'extra' income to this fund but they are higher risk compared to other types of bonds.
