Income fund

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Income fund

A mutual fund that seeks to provide current income from investments.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

income fund

An investment company, the main objective of which is to achieve current income for its owners. Thus, it tends to select securities such as bonds, preferred stocks, and common stocks that pay relatively high current returns. This type of fund is most appropriate for someone seeking high current income rather than growth of principal. Also called income-mixed fund.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Income fund.

Income funds are mutual funds whose investment objective is to produce current income rather than long-term growth, typically by investing in bonds or sometimes a combination of bonds and preferred stock.

Investors, especially those who have retired or are about to retire, may prefer income funds to potentially more volatile growth funds.

The amount of income a fund may generate is related to the risk posed by the investments that the fund makes and the return they generate.

A fund that buys lower-grade bonds may provide substantially more income than a fund buying investment-grade bonds. But the same fund may also put your principal, or investment amount, at substantial risk.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
Three municipal income funds, Delaware Investments Colorado Municipal Income Fund Inc (NYSE American:VCF); Delaware Investments National Municipal Income Fund (NYSE American:VFL); and Delaware Investments Minnesota Municipal Income Fund II Inc (NYSE American:VMM) (together, the funds) on Tuesday declared distributions for August 2019.
Federated Premier Municipal Income Fund (NYSE: FMN) and Federated Premier Intermediate Municipal Income Fund (NYSE: FPT), closed-end funds of Federate Investors, have declared monthly dividends.
The Makaseb Income Fund returned 31% in three years as at Dec 31, 2014 and the Mashreq Al Islami Income fund returned 6.17% in 2014 and 54% since its inception in June 2009.
The most popular fund among Share Centre investors is the Legal & General UK Index Trust fund, followed by the Invesco Perpetual High Income fund, Newton Global Higher Income fund, Legg Mason Japan Equity fund and AXA Framlington Biotech fund.
The suite of fixed income funds includes an Islamic money market fund that has taken advantage of the higher profit rates in the region and returned nearly three per cent in the past year.
Deon Vernooy, Senior Executive Officer at Emirates NBD Asset Management, said: "The first anniversary results of our fixed income funds is marked by excellent performance by our team.
Equity Income Funds by their demeanour will invest in companies which must yield 110% of the yield on the FTSE All-Share which is currently around 3%.
Some of the unusual restrictions on pooled income funds include a ban on investing in tax-exempt securities, a requirement that they be maintained by the charity receiving the remainder interest and a ban on donors or income beneficiaries from serving as trustees of the fund.
Pooled income funds and charitable remainder trusts function similarly to gift annuities.
Municipal income funds, Delaware Investments Colorado Municipal Income Fund Inc (NYSE American:VCF); Delaware Investments National Municipal Income Fund (NYSE American:VFL); and Delaware Investments Minnesota Municipal Income Fund II Inc (NYSE American:VMM) (together, the funds) disclosed on Wednesday their monthly income dividends of USD0.05000, USD0.05000 and USD0.03750 per share, respectively for May 2019.
Global Banking News-May 8, 2019-Three Delaware Funds by Macquarie Municipal Income Funds declare dividends for May 2019

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