Total Return = Capital Gain + Investment Income
Similarly, from a more global perspective Baillie Gifford International seeks out companies which are able to generate above average earnings growth, while Artemis Global Income aim to achieve a combination of capital growth and rising income via a global equity portfolio.
Furthermore, McGrade goes on to note that re-investing of dividends, as Thrupny is planning to do, is also a very effective way of growing capital: “You can see from the chart below the difference between the returns you would have gotten from a £10,000 investment in the FTSE All Share index over the last 20 years without dividend reinvestment (£19,235), illustrated in the chart as price return. By comparison, reinvesting the dividends would have delivered a much higher return of £36,769.”
The other great advantage of income investing from a crypto point of view is it gets rid of instability, erratic price change nature that has kept people away for so long. Our Improvement of Stable Coins – The Income Coin Income Coins give all the advantages of a stable coin with profits on top. As with Unit Trusts based on income stocks and shares, we aim to seek high income generating assets to both pay dividends and increase the value of the fund. Income focused investment produces more stable growth of value as it has two sources of growth, the value of assets and their dividends or revenues. In the case of Thrupny, the revenue portion will be mainly from property rental but may include other elements such as property operation or business revenues. Therefore… Income investing for the millenial, should be our tagline! So an Income Coin using these principles in a well governed and diversified manner can give more stability and potentially significant returns over the medium term. If you are interested in our project, have a look at the white paper https://www.thrupny.com