Income fund

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Income fund

A mutual fund that seeks to provide current income from investments.

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.

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.

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.

References in periodicals archive ?
A fixed income mutual fund collects money from a group of investors and then places the fund into a shared pool.
Pioneer Diversified High Income Trust is a closed ended fixed income mutual fund launched and managed by Pioneer Investment.
A US-based closed ended fixed income mutual fund launched and managed by Pacific Investment Management Company LLC, Montgomery Street Income Securities was formed on 31 January 1973 and primarily invests to seek a high a level of current income from a diversified portfolio, consistent with prudent investment risks.
21 February 2011 -- Indonesia's PEFINDO affirmed Danareksa Melati Premium Dollar's idAAAf credit quality rating reflecting the high portion of Indonesian government debt instruments in the portfolio of the fixed income mutual fund.
AMF is an open-end investment management company that offers six actively managed high quality fixed income mutual fund portfolios.
The company is a close ended fixed income mutual fund launched by Neuberger Berman LLC and is co-managed by Neuberger Berman Fixed Income LLC and Neuberger Berman Management LLC.
21 February 2011 -- Indonesian credit rating agency PEFINDO has upheld the idAAAf credit quality rating on fixed income mutual fund Danareksa Melati Dollar Amerika Serikat.
Established in 1999 by CRAFund Advisors as a vehicle to aid banks looking to satisfy the investment test portion of the Community Reinvestment Act, the no-load, fixed income mutual fund has since grown to become one of the nation's largest investment vehicles dedicated to community investment.
Aberdeen Asia-Pacific is a close ended fixed income mutual fund launched by Aberdeen Asset Management Inc and co-managed by Aberdeen Asset Management Asia Limited, Aberdeen Asset Management Limited and Aberdeen Asset Managers Limited.
13 January 2011 -- Indonesia's PEFINDO affirmed Danareksa Melati Premium Dollar's idAAAf credit quality rating reflecting the high portion of Indonesian government debt instruments in the portfolio of the fixed income mutual fund.
A closed-ended fixed income mutual fund, the company launched by Aberdeen Asset Management Asia Limited is co-managed by Aberdeen Asset Management Limited and Aberdeen Asset Managers Limited.
13 January 2011 -- Indonesian credit rating agency PEFINDO has affirmed fixed income mutual fund Danareksa Gebyar Indonesia II's idAAAf credit quality rating.