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 ?
Global Banking News-August 7, 2019-Three Delaware Funds by Macquarie Municipal Income Funds declare dividends for August 2019
Western Asset Income Fund (NYSE:PAI) has announced that the board of directors of the Fund has approved a change to the Fund's name, the company said.
The Nuveen NWQ Global Equity Income Fund is an opportunistic, income-focused strategy that, through a bottom-up research process, seeks to provide growth and income by investing in undervalued US and non-US companies that produce income and have an identifiable catalyst for improving financials.
Dubai - UAE, 12th February 2015: Mashreq said earlier this week it has been recognized for the performance of its Fixed Income funds either conventional or Islamic.
The Sukuk Income Fund was voted the best by the readers of CPI financials.
NBAD Sukuk Income Fund achieved a profit equivalent to $942,773.25 from 30 May 2013 till 28 November 2013, and a net asset value (NAV) of $5.1831 during the period.
At sixth position is the Jupiter Global Managed fund, followed by the Schroder Asian Income Maximiser fund, BlackRock Gold & General fund, Fidelity Enhanced Income fund and Threadneedle American Smaller Companies fund.
For further information on how Alok Dhanda can help you choose your income fund, contact Dhanda Financial, 52 Dean Street, Newcastle upon Tyne, NE1 1PG, tel: (0191) 255 8960, email or visit
IGI Islamic Income Fund: The board declared final payout for the year in the form of bonus units to growth unit holders and cash dividends to income unit holders.
Jazz Air Income Fund said ACE Aviation Holdings Inc has exchanged its 47,226,920 units of Jazz Air LP for an equivalent number of units of Jazz Air Income Fund, under terms of the investor liquidity agreement entered into at the time of the initial public offering of Jazz Air Income Fund.
The tax-efficient structure of the Canadian income fund enables U.S.
By laddering between one and 10 years, "effectively, what you end up with is the risk characteristics of a five-year bond," says Steve Bohlin, manager of the Thornburg Limited Term Income Fund in Santa Fe, New Mexico, which uses a laddered approach.

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