Investor Glossary-income fundInvestor Glossary-income fundInvestor Glossary-income fundInvestor Glossary-income fundInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Income Fund

The HTML to link to this page
 

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...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: Key Rate Duration, margin rate, stock split, irrevocable trust, required rate of return, 1031 exchange, debt service coverage, ex-dividend, ex-dividend date, covered put, 401a, average price per share, Zero Cost Collar, deferred tax, liquidity ratio, phantom income, reverse mortgage, current ratio, 1035 exchange, inflation, class C shares, balance sheet, per diem, diluted share, wholly-owned subsidiary, annual return, VIX, option premium, limit order, EBITDA, deferred revenue, stock market close, APR, in escrow, FICO score, command economy, implied volatility, open position, risk management, dividends payable, real GDP, 144a, FTSE, minority interest, LIBOR, cancelled check, labor relations, retained earnings, quality assurance


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use