Being financially secure for life is a dream for everyone, but fulfilling it may be a major challenge unless one doesn’t have at least the basic knowledge about financial management. Earning a steady salary is merely the first step; multiplying it is the main one. In that sense, investing in income funds which offer big dividends in return is a perfect choice. Even though many people are tempted to opt for funds that give the highest yields on a quarterly basis, there are other factors which must be considered before investing in them.

One of them is the expense ratio, which basically indicates the per annum amount an investment company charges for the sum invested by a consumer. The other factor is that dividends earned may be used to buy more shares, thereby reinvesting them in a process known as the Dividend Reinvestment Program (DRIP).

Here are two of the best dividend income funds which have been relied upon and consistently given benefits to the investors:

• Vanguard International High Dividend Yield Index Fund ( VIHIX )
  The specialty of VIHIX lies in the fact that it gives investors the much-needed exposure to nearly 800 stocks in companies both in and out of the country. They are estimated to deliver above-average yields at a cost of 0.42%, which is 64% less than an average expense ratio of funds of a similar type. It means that if a person invests the minimum amount set of $3000, he or she would have to pay only $12.6 to the investment firm for the same. The fund has large-cap value, which signifies that it is suited for those who have investment goals for the long-term and may persevere with the volatility of stock markets.

• Fidelity Capital and Income Fund (FAGIX)
  This is amongst the best dividend income funds that also gives an investor capital growth in the form of diversification. A minimum investment of $2500 is required and as of June 29, 2018, an investor will have to pay around $16.75 due to an expense ratio of 0.67%. The fund claims that each year, an investor gains 5.69% annual returns on an average and persisting for 10 years takes it to 8.55% and more. This fund ought to rank in the top dividend income funds as it consists mainly of high-yield bonds, involving maximum returns against average risks.