International income funds

Income funds are a type of investment that are designed to give you a regular income.

Unlike other international investments, income funds are focused on providing you with money on a regular basis, rather than on increasing the capital of your investment.

How do international income funds work?

In much the same way as an offshore fund pools your money with that of other investors, international income funds use this method to increase your purchasing power. The aim of these funds is to provide you with regular payments, meaning that your investment is providing you with money to live on, rather than increasing the amount you invested.

As a result, the money will be invested in a different way and your dividends are paid out on either a monthly or quarterly basis. Lloyds TSB Offshore Fund Managers Limited offer a range of income funds, allowing you to find the best option for your situation that will make your money do the hard work.

What are the different income fund options?

The kind of investment you want to make, as well as the level of risk you are prepared to take, will determine the kind of income fund that you should put your money into. For example, at Lloyds TSB Offshore Funds Managers Limited they offer a sterling deposit fund, a sterling denominated high income fund, an offshore gilt fund, a sterling bond fund and a euro denominated high income fund.

Each of these will utilise your money in different ways, providing varying different levels of return. The High Income Fund, for example, will provide you with a regular income by investing in corporate bonds; meanwhile, the Offshore Gilt Fund will place its money into low-risk government bonds, providing you with an income through them.

If you are looking for a good deal on cash investments, then the Sterling Deposit Fund could be your best option. Alternatively, if you are living in the eurozone, you may find that the Euro High Income fund is the most appropriate income fund from Lloyds TSB Offshore Fund Managers Limited as it will allow you to invest in and provide your income in euros, removing the need to worry about foreign exchange rates and losing money due to fluctuating currency markets.

Who are income funds useful for?

Income funds can benefit a wide range of people at various stages of their lives. Expatriates can find them a useful method of supplementing an income in a foreign country, while retirees may decide that an income fund can offer an attractive way to make the most of their money and enjoy retirement.

International income funds may prove to be a particularly effective investment when other options - such as property investment and deposit accounts - are performing badly.

How do I know what income fund is best for me?

Everyone has different personal circumstances and therefore it is important that you speak to a professional adviser before making a decision about the type of international income fund you want to invest in.

Lloyds TSB International has many experienced financial advisers who will be able to advise you about the best choice based on your personal financial circumstances.

As with all funds, you should remember that the value of shares and the income from them can go down as well as up and cannot be guaranteed. To find out more, visit Lloyds TSB International.