Could 10,000 Shares of This FTSE 250 Fund Grow to £12k a Year of Passive Income?

Introduction

Investing in dividend-paying stocks is a great way to generate passive income. And with the FTSE 250 index offering a number of high-yield stocks, it's possible to build a portfolio that generates a substantial income stream.

One such stock is the FTSE 250 fund, which has a 9.5% yield. This means that for every £1,000 invested, you could receive £95 in dividends each year.

Could 10,000 Shares of This Fund Grow to £12k a Year of Passive Income?

If you were to invest £10,000 in this fund, you could receive £950 in dividends each year. This would be enough to generate £12k of passive income over 10 years.

Of course, it's important to remember that the value of investments can go down as well as up. So there's no guarantee that you will receive this level of income.

Why Invest in This Fund?

There are several reasons why you might consider investing in this fund:

• High yield: The fund has a 9.5% yield, which is higher than many other FTSE 250 stocks.
• Diversification: The fund invests in a range of FTSE 250 stocks, which means that your investment is diversified.
• Long-term growth potential: The FTSE 250 index has a long history of delivering strong returns, so there's the potential for your investment to grow over the long term.

Risks to Consider

As with any investment, there are some risks to consider before investing in this fund:

• Market volatility: The value of the fund can fluctuate in line with the FTSE 250 index, so your investment could be worth less than you paid for it.
• Dividend cuts: Companies can cut their dividends at any time, so there's no guarantee that you will receive the same level of income in the future.

Conclusion

Investing in dividend-paying stocks is a great way to generate passive income. And with the FTSE 250 fund offering a 9.5% yield, it's possible to build a portfolio that generates a substantial income stream.

However, it's important to remember that all investments come with some risk. So before investing, it's important to do your research and understand the risks involved.