Don't act on impulse

Selecting a UK equity income fund is a lot like choosing between a sports car and a family saloon - the important considerations are driven by the requirements, objectives and risk profile

Buying a car is rarely an impulse purchase - for most people, a great deal of grey matter is expended on selecting the right model. This is because of the number of different characteristics associated with cars, including its speed and powers of acceleration, reliability, safety, comfort, whether there is sufficient space for kids and luggage and its fuel efficiency. Investors are well advised to take equal care when selecting a UK equity income fund because of the different ways in which funds in the second-largest IMA sector are managed. Metaphorically, investors should kick the tyres...