Which asset classes to consider for an income-producing portfolio

WHILE working people invest to accumulate savings, a large group of people – mostly over the age of 65 – have invested their accumulated savings to provide an income. The second type of investment is very different from the first.

The return on an investment is made up of its income yield and its capital growth. The distinction between the two is often downplayed by asset managers, and you rarely see a breakdown on fund fact sheets.

Yield is interest in the case of bonds and cash,