I am trying to understand ISA's and yields - and I am not sure if this is the correct place to ask these question -- if not perhaps someone mighjt be kind enough to tell where I might get the answers - I find IFA confusing and somehow I feel uncomfortable if i don't understand some basic rules.
i often see quoted performance figures for example Invesco Perpetual Monthly Income + that telle me that the performance over the last year has been 108.8 and a yield of 4.9% Does this mean that if I had invested £7,000 a year ago the investment is now worth £7616 and I would have received £343 income.
What would be the income in the second year 4.9% of £7000 or 4.9% of £7616? And what would the income be in the second year if instead of taking the income in the first year I had re-invested it.
Would it be 4.9% of £7,000 or 4.9% of £7343 or 4.9% of £7617 or 4.9% of £7959
I hope someone can explain?
regards
J