UK Equity Income Rated Funds

Equity income strategies focus on companies that pay a dividend to shareholders. Companies that prioritise dividend payouts tend to be more established and stable companies, with steady profits. Therefore an equity income strategy will often prove more resilient in falling markets, though it may lag a rapidly rising market.

Equity income investing brings its own valuation discipline. The income yield on any stock is expressed as a percentage of the share price. If the price rises, income falls if the dividends do not rise in tandem. So investors are unlikely to buy companies that are very expensive because the income would be low.

In general fund managers are striving to find those companies where the dividend is high, stable and secure. Some strategies will emphasise those companies paying a growing dividend that can keep pace with inflation; others will seek a high absolute dividend.

These are common themes among the 11 Rated Funds in our core selection. Income strategies also focus on small companies. Such funds can be found among our seven adventurous choices. Investors seeking income should ensure they have exposure to UK funds, because it limits the risk of adverse currency movements.

Five of our choices are investment trusts that can use reserves to smooth income payments. This can be reassuring for investors who withdraw income, but also for growth-oriented investors, because dividends reinvested over the years can have a powerful compounding effect.

UK EQUITY INCOMEBrowse other rated fund groups
Fund & Sector
Rated Funds Group
1 Month Perf.
1 Year Perf.
3 Year Perf.
5 Year Perf.
MI Chelverton UK Eq Inc
UT UK Equity Income
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UK EQUITY INCOME0.8%
45 / 99
24.7%
2 / 94
52.8%
2 / 85
116.6%
1 / 79
Montanaro UK Income
FO Equity - UK
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UK EQUITY INCOME1.1%
24 / 79
24.3%
5 / 74
52.7%
6 / 63
104.3%
3 / 48
Finsbury Growth & Inc Tst PLC
IT UK Equity Income
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UK EQUITY INCOME1.6%
4 / 24
23%
4 / 24
55.8%
2 / 24
117.4%
2 / 24
TB Evenlode Income
UT UK All Companies
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UK EQUITY INCOME1%
118 / 278
17.2%
52 / 273
48%
29 / 256
97%
22 / 243
The Divrs Inc Tst PLC
IT UK Equity Income
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UK EQUITY INCOME0.9%
9 / 24
14.6%
10 / 24
40.7%
4 / 24
105.3%
3 / 24
Slater Income
UT UK Equity Income
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UK EQUITY INCOME0.8%
43 / 99
13.8%
19 / 94
29.8%
43 / 85
87.6%
8 / 79
Royal London UK Equity Inc
UT UK Equity Income
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UK EQUITY INCOME0.9%
39 / 99
13.2%
26 / 94
33.7%
19 / 85
86.8%
9 / 79
The CtyofLdn IT
IT UK Equity Income
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UK EQUITY INCOME1.4%
5 / 24
12.7%
14 / 24
31.2%
8 / 24
66.3%
11 / 24
Franklin UK Equity Income
UT UK Equity Income
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UK EQUITY INCOME0.3%
66 / 99
12.4%
32 / 94
37.6%
7 / 85
75%
13 / 79
Janus Henderson GlCrUKInc
UT UK All Companies
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UK EQUITY INCOME1.4%
48 / 278
11.9%
172 / 273
29.6%
162 / 256
78.3%
65 / 243
Lowland Investment Company
IT UK Equity Income
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UK EQUITY INCOME-1.7%
21 / 24
10.8%
19 / 24
31.7%
7 / 24
74.3%
8 / 24
Jupiter Income Trust
UT UK Equity Income
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UK EQUITY INCOME1.8%
5 / 99
9.5%
63 / 94
36.9%
9 / 85
73.3%
18 / 79
Rathbone Income
UT UK Equity Income
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UK EQUITY INCOME-0.4%
87 / 99
9%
66 / 94
30.5%
38 / 85
68.1%
26 / 79
Threadneedle UK Eq Inc
UT UK Equity Income
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UK EQUITY INCOME-1.2%
96 / 99
8.7%
70 / 94
29.8%
44 / 85
72.4%
19 / 79
Troy Income & Growth Trust plc
IT UK Equity Income
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UK EQUITY INCOME0.5%
12 / 24
7.6%
22 / 24
30.9%
10 / 24
64.9%
15 / 24
Schroder Income Maximiser
UT UK Equity Income
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UK EQUITY INCOME1.4%
16 / 99
7.4%
82 / 94
23.6%
70 / 85
55.3%
58 / 79
Invesco Perp Income
UT UK All Companies
View Factsheet
UK EQUITY INCOME0.3%
220 / 278
6.8%
253 / 273
18.8%
250 / 256
60.7%
131 / 243
Fidelity Moneybuilder Div
UT UK Equity Income
View Factsheet
UK EQUITY INCOME0.8%
40 / 99
6%
86 / 94
22.3%
72 / 85
54.8%
59 / 79
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Rated Funds Update: Rated Funds 2017

View a full list of our Rated Funds 2017 here