Welcome to the new my.morningstar.com! Learn more about the changes and how our new features help your investing success.

5 Tips for Avoiding Income-Investing Pitfalls

When investing for income, follow these tips to ensure you stay on the straight and narrow

Holly Cook 27.09.2013

When investing for income, follow these tips to ensure you stay on the straight and narrow.

Seeking Income vs. Needing Income
Investors often mistake seeking income as an investment strategy (i.e. a value strategy rather than a growth strategy, or seeking income for the purpose of diversification) with investing to fill a particular income gap in their household balance sheets. The appropriate investment strategy will depend on the results of personal due diligence. As with all investment strategies, there will be a trade-off between the level of income desired and the level of investment risk one is willing to take to achieve it.

When it comes to investing to generate regular income contributions, relying on yield-generating assets such as dividend-paying equities, bonds or funds isn’t the only option available. Investors can also gain exposure to capital growth investments, from which regular capital withdrawals can be taken as ‘income’.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Member.

Register For Free

About Author

Holly Cook

Holly Cook  is Manager, Morningstar EMEA Websites

Audience Confirmation


By clicking "accept" I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See "Cookie Consent" for more detail.

  • Other Morningstar Websites
© Copyright 2021 Morningstar, Inc. All Rights Reserved.      Terms of Useund      Privacy Policy.
© Copyright 2021 Morningstar Asia Ltd. All rights reserved.

Terms of Use        Privacy Policy        Cookies