Finding options to create additional income is always a challenge for many, but more so for business owners who need to pay for operational expenses while also saving up for the future.

One convenient way to address this is by investing in income-paying funds.

Income-paying funds are designed to generate regular income, usually in cash, for investors. These funds typically invest in a range of income-generating assets, such as bonds, dividend-paying stocks, and real estate investment trusts (REITs).

If you are a business owner, here are three ways that income paying funds can boost your cash flow and help your business grow.

1. Income-paying funds can help cover operational expenses. With an income-paying fund increasing your cash flow, you will be in a better position to cover operational expenses. On top of that, you will also be able to cope with inflation while saving up for your company’s expansion plans. Frequency of cash payouts can also vary from monthly to quarterly.
   
   
2. Income-paying funds provide tax-free benefits. Many income-paying funds offer tax-free provisions. In the Philippines, dividends received by a domestic or resident foreign corporation from a domestic corporation are not subject to tax. With this, you can maximize your earnings.
   
   
3. Income-paying funds promote better risk management. These funds often invest in less volatile assets, which suit a business owner’s risk tolerance vis-à-vis the need for a regular stream of income. For example, a retail company facing seasonal sales fluctuations might choose to invest in a balanced income-paying fund to stabilize its income during off-peak periods.

Investing in income-paying funds can be a valuable financial tool for businesses looking to secure consistent income while managing risk and diversifying their investment portfolio. That said, it is also important to understand the varied factors you should consider when investing.

At the top of the list are your investment objectives. Know your financial goals and cash flow needs. This will guide the selection of the most suitable investment.

Your risk appetite must also be considered. While many income-paying funds are considered low risk, it’s best to understand the underlying assets and market conditions.

Once you determine your objectives and risk appetite, it’s now time to find the right investment partner. Take a close look at your potential fund manager’s reputation and background. A reputable manager with a history of consistent performance can significantly impact the success of your investment.

Finally, ask about the fees and charges. These can erode your potential returns over time, so it would be best to look for funds with low expense ratios and transparent fee structures.

With all these considered, the Sun Life Prosperity World Income Fund is a bright investment option for business owners like you.

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The World Income Fund offers potential cash payouts, which allow businesses to have an additional source of income. Businesses can access a wide variety of assets worldwide while also enjoying tax-free monthly cash payout

Sun Life offers Sun Life Prosperity World Income Fund, a multi-asset feeder fund that invests at least 90% of its assets in a Target Fund* managed by BlackRock®, one of the world’s largest asset management companies.

For as low as P10,000, businesses can begin investing, and then make additional investments of P1,000 anytime on their way towards long-term growth. So not only may you earn from its monthly cash payout, but you also earn from the Fund’s potential long-term capital appreciation.

Whether you’re a startup or an established corporation, integrating these investments into your financial strategy can pave the way for sustained growth and stability in an ever-evolving marketplace.

Ready to know more about the Sun Life Prosperity World Income Fund? Talk to your Sun Life Advisor today or connect with one through www.sunlife.co/InvestmentsAdvisor.

*BlackRock® Dynamic High-Income Fund (D6)

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Sun Life Asset Management Company, Inc. is regulated by the Securities and Exchange Commission (SEC). For client assistance, know about our process at https://www.sunlife.com.ph/en/about-us/corporate-governance/Your-FCPA/ or contact: +632-8849-9888 |   sunlink@sunlife.com | Sun Life Centre, 5th Ave. cor Rizal Drive, BGC Taguig.  For consumer concerns, contact SEC at +632-8818-5952 | email CGFD@sec.gov.ph