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 ?
The introduction of the Kemper Ohio Tax-Free Income Fund comes at an opportune time as state and federal taxes are on the rise, and as the number of available shelters for individual investors remain few," said Bill Chapman, KFS executive vice president and director of mutual fund marketing.
The Kemper Ohio Tax-Free Income Fund is the fifth in the Kemper State Tax-Free Income Series, which also includes the Kemper California Tax-Free Income Fund (1983), Kemper New York Tax-Free Income Fund (1985), the Kemper Florida Tax-Free Income Fund (April 1991) and the Kemper Texas Tax-Free Income Fund (November 1991).
The minimum investment for the Kemper Ohio Tax-Free Income Fund is $1,000 with subsequent investments of at least $100.
At the time of its offering in April 1986, the First Australia Prime Income Fund was the largest-ever initial public offering on the American Stock Exchange.
CONTACT: Brian Sherman of First Australia Prime Income Fund, 011-612-258-8222, or Marissa Moretti or Corey Cutler of Dewe Rogerson, 212-688-6840, for First Australia Prime Income Fund/
FAX) CO: The First Australia Prime Income Fund, Inc.
AllianzGI Equity & Convertible Income Fund (NYSE:NIE)
AllianzGI Global Equity & Convertible Income Fund (NYSE:NGZ)

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