How to Invest for Income

Income is a key component of many investment portfolios, but how to get it when interest rates are at rock bottom? Here are some ideas

Fernando Luque 21 January, 2021 | 8:59AM

Income investing

For many investors, their main financial objective is to build a portfolio that will pay an income. Traditionally, this was achieved by holding a mix of fairly safe bond investments, but ultra-low interest rates mean that these days investors need to be a bit more creative. Here are some investments that might fit the bill: 

Bonds

Bonds are often considered the linchpin for investors seeking steady income because they regularly return money to their holders in the form of coupons. Historically, investing in developed market sovereign bonds has been a way to save while avoiding risk, but many of these bonds now offer negative returns.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

About Author

Fernando Luque

Fernando Luque  is Senior Financial Editor at Morningstar Spain 

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