Investment funds paying monthly income are uncommon but treasured by savers wanting frequent payments to supplement pensions or other income.
Of the 2,000 unit trusts or equivalent funds available to private investors, just 20 pay income on a monthly basis. Those which do are an eclectic mix of portfolios holding shares and bonds, or often both. By investing in these most savers are aiming to derive a high, frequently paid income, but because several of these funds have delivered strong returns in recent years, their appeal is spreading to a wider audience.

But unlike the cash Isa accounts which pay income monthly - see the table below for the current top payers - savers' capital is at risk.
Darius McDermott of Chelsea Financial Services, the broker, is a fan. He said: "Investor demand for these funds is picking up and I expect it to continue as investors gain greater control over their pensions. But it is hard to get high levels of income at the moment, so the higher yields often indicate more risk is being taken."

Premier Monthly Income, managed by Chris White, is unusual among monthly payers in that it only invests in shares. Mr White invests in high-yielding British firms, comprising mainly blue chips such as BP and GlaxoSmithKline. The fund yields 4.7pc and over the past three years has returned 55pc (capital growth and income payments combined).

Jupiter Monthly Income holds 85pc in shares with the rest in cash and bonds. It yields 5.1pc, and has returned 39pc over three years. A newer fund with a similar investment mix is Schroder Managed Monthly High Income, yielding 5.9pc.
Threadneedle Monthly Extra Income, which also invests around 80pc in shares, yields a lower 3.9pc - which is still considerably higher than the wider UK stock market yield of 3.3pc. This monthly payer is favoured by Lee Robertson of Investment Quorum, the wealth manager, who said: "For me the important thing is that the yield is growing as the fund's portfolio is positioned to benefit from the steady increase in companies' earnings as the recovery continues."

Mr McDermott tipped the recently launched Kames Diversified Income fund. The fund is only six months old but it is targeting a 5pc annual distribution, derived from a portfolio invested 40pc shares and 60pc in bonds.

Jupiter Monthly Income always has great funds. I've been invested with their monthly for 10 years now. I use the cash for beers.