Four investment funds worth considering for your Individual Savings Account (ISA):

I'm here to help you boost your income this tax season!

gosh, who doesn't need a little extra cash, right? Turns out, 39% of UK investors have their sights set on generating more income as their primary investment goal for the next year. So, you're not alone! But how can you achieve it?

"The ISA allowance of £20,000 presents a golden opportunity for UK investors to build a dang tax-free income portfolio," says Tom Stevenson, investment director at Fidelity International. "You better believe it, with the right investments, your ISA can become a powerhouse of additional income. Helping you meet your financial goals and securing your financial future, big time!"

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Let's not forget - use it or lose it

Many investors aren’t even aware that the ISA allowance resets every blasted year! That's right, peeps, ISAs are a cornerstone of tax-efficient investing in the UK, but if you play it reckless, that allowance is not a guarantee for next year! Jason Hollands, managing director at Bestinvest, highlights the importance of investing the full £20,000, as "it doesn't roll over."

Now that we've got that sorted, what are some top-notch funds to get your investment engine revving?

Fixed income - a bonding experience

For starters, investors usually flock to bonds when they're hankering for a way to boost their income. According to Stevenson, bonds are the go-to for a predictable yield with a lowered risk level compared to equities.

One such winning fund is the M&G Corporate Bond Fund. This fund honors low-risk companies with a focus on investment-grade corporate bonds and even dabbles in some government bonds, like gilts. Just be aware, it's vulnerable to shifts in inflation and interest rate expectations, and other such factors. But, don't sweat it! This fund's team of analysts (they're the cats' pyjamas) assess the creditworthiness of the issuers they hold, giving you peace of mind.

Dividend stocks - cashing in on the global economy

Next up, picking the right equities can put a smiley face on your bank account via dividends. Dividend stocks "tend to have a lower starting yield than fixed interest but offer the prospect of rising distributions and capital growth," says Stevenson. So, how about some global income exposure? Fidelity's Global Dividend Fund holds the key.

Longstanding manager Dan Roberts focuses on stocks with predictable, consistent cash flows, simple business models, and minimal debt on their balance sheets. Sounds just about right, doesn't it?

An infrastructure fund - alternative income

Navigating infrastructure investing can be challenging, but if you do it right, you might land a steady, inflation-linked income and capital growth. But remember, as infrastructure companies are seldom publicly listed, a specialist vehicle like an investment trust is usually the go-to for purchasing infrastructure assets.

Stevenson's pick is the International Public Partnerships Ltd (LON:INPP). INPP owns essential, low-risk assets such as schools and hospitals, transport and renewables that are typically held in partnership with the government and subject to long-term contractual agreements. And the cherry on top? Distributions have blossomed every year since the trust's launch in 2006, making it one of the next-generation dividend heroes according to the Association of Investment Companies.

A fund for diversified income

Lastly, the Ninety One Diversified Income Fund offers a one-stop solution to diversify your exposure, thereby reducing risk, while maintaining a focus on income. It invests in bonds, dividend stocks, infrastructure, and property. Over the past five years, its annualized volatility stood at a mere 5.6%. Not too shabby!

So, there you have it - four funds to get you started on your income-generating journey within your stocks and shares ISA. Good luck, and let the dough roll in!

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Remember to make use of the ISA allowance of £20,000 before it resets each year to build a tax-efficient income portfolio.
If you're looking to boost your income, bonds such as the M&G Corporate Bond Fund can provide a predictable yield with relative safety compared to equities.
Dividend stocks, like those in Fidelity's Global Dividend Fund, can offer not only potentially high yields but also the prospect of long-term capital growth.
For alternative income, the International Public Partnerships Ltd (LON:INPP) invests in essential infrastructure assets such as schools, hospitals, renewables, and transport with long-term agreements.
To further diversify your income, the Ninety One Dividend Income Fund invests in a mix of bonds, dividend stocks, infrastructure, and property, with a lower volatility of 5.6% over the past five years.