Passive Income investing should be more than just high yield

In a recent survey conducted by Endowus with 902 respondents, 83% would like to have an income portfolio. It is surprising that while 75% of them want to preserve their capital through their income funds, more than half the respondents want a high yield of 5% and above. In this article, we would like to share with you how Endowus selects best-in-class income funds, and how you can make use of the same principles and thought process when choosing your own funds — either through Endowus Fund Smart or even with ETFs such as Lion-Phillip S-REIT ETF.

What is an income fund?

An income fund is an investment vehicle (typically a unit trust or an ETF) with an investment mandate prioritising returns in the form of cash payments from its underlying investments. This will be in the form of coupons for fixed income funds or dividends from equities funds....