#3 - Monthly Dividend Unit Trust which Gives you Income Reliably - Pimco Income Fund Class E - SGD-H

The following write up is NOT an inducement to buy. The following is factually based on research on material which the fund managers have made available to public. All investors are advised to always perform their own research before committing to any investment. All investments which we discuss are approved by the relevant authorities and readers are advised to only invest in instruments which have been granted the legal licence to operate in the region. Investing in non-regulated investments may expose Investors the risk of an unregulated product. No one is allowed by law to solicit investment without relevant permits and licences and any suspicious soliciting of investments online should be treated cautiously. Any investors who have doubts about shady investments should approach their relevant authorities for advice or seek advice from a financially "Trained" person.

Income seekers who love to have a stream of monthly income would be pleased to know that many of these mutual funds we write about have be thoroughly researched by our team. We tend to avoid mutual funds which pays income from its own capital thus eroding the Net Asset Value of the fund as dividends are Paid.  To meet our criteria NOT only must the fund have paid out consistent dividends over time but the fund must have retained or appreciated in value thus giving Investors a safe heaven of Passive income that can last time for decades or a lifetime.

When an Investor discovers a Dividend Gem, its like a man who discovered a magic wallet which gives you a stable income every month for life.

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Pimco Income Fund Class E - SGD-H ($10.13 Per Unit as of April 28, 2019)

This fund was started in 2013. For 6 Years running it has paid out consistent Dividends. Based on the current market price, the fund has paid out a consistent dividend of 3.4033 Cents each month without fail. The dividend has NOT changed Since 28 June, 2013. This signals consistence with its performance.

It started trading at $10 a unit back in 2013 and has since appreciated to its current value today.

Dividend yield based on the current price is approximately 4.03%. More yield can be squeezed out of the fund if you choose to reinvest the cash proceeds instead of spending it.

The fund has very low volatility levels and has the lowest price of $9.60 as can be seen above in its historical pricing and a high of $10.50. At the present value, it has potential for more capital gains.

For those concerned with the true yields, as can be seen in the image above, the fund has performed commendably well over the years with the reflected yields. More details about the fund can be found in Fund Super mart where investors can buy unit trust with zero commissions.

Conclusion

Certainly a fund that an investors can choose to use to park a portion of their cash reserve. Do note to always choose to diversify even "Safe" funds such as these. A millionaire who parks $1,000,000 into a fund which pays 4% dividend yield a year receives around $40,000 a year in cash returns. However in the unlikely event that he loses the investment due to whatever reasons, the entire $1,000,000 is gone.

Now a Millionaire who Parks his money by putting $10,000 into 100 different unit trust which he deems "safe" and which assuming ALL pay 4% each in dividend yield a year would still receive $40,000 a year in dividends. Now assuming one or two of the funds fail due to whatever reasons....all he would have lost was $20,000 of his capital. The other 98 funds with $10,000 each would still go on paying him his 4% Yield which means he will receive $980,000 X 4% = $39,200 in dividends. After deducting the loss of $20,000 he would still have $19,200 in cash returns for the year.

Diversification is the investors best friend. Its better to have $1000 in 1000 different instruments than $10,000 in 100 different instruments.

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