The search for better income from investments will continue to be important as the bank base rate remains low and interest rates on deposit accounts have dropped drastically in recent months. This is particularly important to people who rely on income from capital. With deposit accounts paying paltry interest, investors have to look for alternative avenues.

It is possible to get higher return from good quality corporate bond or equity income funds. It is advisable to go through collective  investment funds. Investing under ISA wrapper will give tax free income. Now it is possible to transfer cash ISA to stock & share ISA. A huge array of investments can be held in stocks and shares ISA, so investors can manage the risk that they want to take according to their personal circumstances.

Investors who are looking for capital growth will have better opportunities of higher return. In this current climate, equity valuations are low and in the medium and long term can provide better return on investments. It is advisable to invest in good quality growth funds.

This has added advantage for higher rate tax payers, because they can get tax free gain up to a limit and any excess gain will be taxed at 18%.

There is always a risk in equities but by diversification and good selection of collective funds the risk can be mitigated.

As independent financial advisers we hunt for the best opportunities to give better return on investment. The fact that equity valuations having fallen so far give more opportunities to select good funds with reduced risk.

This is just general overview. Investors should take professional advice.

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