   
|
|
|
|
Income Fund
|
An income fund is a mutual fund structured to provide maximum income. To achieve this goal, an income fund selects investments that typically provide dividends or interest. These investments include bonds, especially high-yield bonds; and preferred stocks, which guarantee dividends. Blue-chip stocks often provide income as well, since they are the stocks of large companies that can afford to pay dividends. An income fund is popular among risk-averse investors, including the retired, who want to preserve as much of their assets as possible. An income fund does not grow in value as much as a growth fund; this is the trade-off for the current earnings of the income fund. An income fund typically invests in low-growth sectors of the economy.
Rate this income fund definition...
|
|
Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms: EBITDA, liquidity ratio, 401a, deferred tax, command economy, 144a, per diem, margin rate, deferred revenue, required rate of return, cancelled check, open position, stock split, ex-dividend, implied volatility, in escrow, irrevocable trust, limit order, quality assurance, risk management, 1035 exchange, Key Rate Duration, class C shares, current ratio, Zero Cost Collar, 1031 exchange, wholly-owned subsidiary, VIX, reverse mortgage, retained earnings, phantom income, option premium, minority interest, labor relations, ex-dividend date, covered put, real GDP, LIBOR, inflation, dividends payable, diluted share, debt service coverage, balance sheet, APR, equities, average price per share, FICO score, FTSE, stock market close
|
|
|
|
