A portfolio or mutual fund in which the primary goal is the receipt of dividends on the securities represented therein. That is, the investor or shareholder expects dividends and is less concerned with capital appreciation. This involves investing in companies with lower risk than other portfolios. For example, an income-equity fund will likely invest in a blue-chip company with a reliable, but not exciting, outlook, and will be less interested in a promising start-up with a great outlook. See also: Income fund, Growth and income fund.
An investment company that invests primarily in the equities of companies with good records of paying dividends so as to produce a high level of current income for shareholders.