To boot, the equity income fund owns 9 per cent of the trust, creating a share price overhang.

For investors who do not wish to select stocks themselves, an equity income fund can be a good way to tap into these stocks.

Say the grandparents invested 100,000 in an income fund yielding 4.9%.

It seems an indefensibly speculative choice for the mainstream income fund (where it makes up fully 2.59 per cent of the tattered portfolio).

Some investors may therefore prefer to invest in a lower-risk equity income fund with a defensive remit.