Income investment company


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Income investment company

A management company focused on managing a mutual fund whose primary purpose is income generation, typically investing in bonds and high dividend yielding stocks.

Income Fund

A portfolio or mutual fund in which the primary goal is the provision of income to shareholders from the securities represented in the fund. That is, the investor or shareholder makes money from the dividends and coupons from the securities in fund, not from higher bond or share prices. This involves investing in securities with lower risk than other portfolios. For example, an income fund will more likely invest in a blue chip with a reliable, but not exciting, outlook instead of a promising start-up. An income fund is most popular with those nearing or in retirement who prefer steady investment income rather than the possibility of becoming rich. See also: Growth fund, Growth and income fund.