You can increase your ISA by four income funds

One of these four income funds could pay dividends if you add it to your stocks and shares ISA before the end of the tax year

As the tax year deadline approaches, you might be searching for a wise addition to your portfolio that will increase your income. ISA season is here.

Increasing income is the top investment objective for 39% of UK investors in the upcoming year, according to Fidelity International. However, which funds are best suited to increase this revenue?

Investment director at Fidelity International Tom Stevenson says, "The ISA allowance of 20,000 gives UK investors an opportunity to build a tax-free income portfolio." Your ISA can grow into a significant source of extra income with the correct investments, assisting you in reaching your financial objectives and safeguarding your financial future.

A lot of investors don't know that the annual reset of the ISA allowance occurs. Jason Hollands, managing director of investment platform Bestinvest by Evelyn Partners, states that "ISAs are a cornerstone of tax-efficient investing in the UK, but it is important to understand that they are a use it or lose it allowance." "This allowance doesn't roll over, so don't let it slip away," he continues.

Keep in mind that your 20,000 allotment can be divided among several ISAs; even if you have already made contributions to a cash ISA, you can still purchase stocks and shares if the total amount invested this tax year is less than 20,000.

If you're looking for ways to boost your income in the upcoming year, Stevenson has selected four funds that could help.

Bond funds with fixed income.

Bonds are among the first options that investors consider when looking to increase the income in their portfolios.

"The majority of income investors typically allocate a portion of their portfolio to fixed interest securities, which typically provide a consistent yield with less volatility than stocks," Stevenson says.

Though it can also invest in high-yield debt and government bonds (like gilts), the MandG Corporate Bond Fund keeps its investments reasonably safe by allocating at least 70% of its assets to investment-grade corporate bonds.

According to Stevenson, "the fund primarily invests in lower risk companies and hedges any foreign currency exposure back to sterling but would still be affected by changes in inflation and interest rate expectations, as well as other such factors." The team of analysts and funds manager who evaluate the creditworthiness of the issuers it holds are also favorites of his.

Dividend stocks are a type of global income fund.

Choosing the appropriate stocks can also result in dividend income.

According to Stevenson, dividend stocks "have a tendency to have a lower starting yield than fixed interest though offer the prospect of rising distributions and capital growth." For those investors looking for this kind of exposure, he recommends Fidelity's Global Dividend Fund.

Stevenson explains, "Longtime manager Dan Roberts has a conservative approach that focuses on stocks with simple, understandable business models and predictable, consistent cash flows with little or no debt on their balance sheets."

An infrastructure fund as a supplementary source of revenue.

Although infrastructure investing can be challenging, done correctly, it can provide both capital growth and consistent, inflation-linked income.

Nonetheless, the best way to invest in infrastructure is typically through a specialized vehicle like an investment trust because the majority of infrastructure companies aren't publicly traded and are rarely very liquid assets.

International Public Partnerships Ltd (LON:INPP) is Stevenson's choice. According to him, INPP "owns core, low-risk assets like hospitals, schools, transportation, and renewable energy that are typically held in collaboration with the government and subject to long-term contractual arrangements."

The Association of Investment Companies calls the trust one of the next-generation dividend heroes because of the annual increases in distributions since its inception in 2006.

A diversified income fund.

A simple method of diversifying your exposure and lowering your risk while keeping an eye on your income is the Ninety One Diversified Income Fund.

As determined by the FTSE All-Share Index, Stevenson states that the fund's goal is to limit risk to less than 50% of the UK stock market. It makes investments in real estate, infrastructure, dividend stocks, and bonds.

Its annualized volatility was only 5 points 6 percent over the five years ending in December.