Income fund - A mutual fund providing for liberal current income from investments.
A unit or investment trust, or other collective fund, which aims to pay a high dividend to its shareholders by investing in bonds or shares which themselves produce good income, either through high rates of interest or high dividend yields.The focus of such a fund is resolutely on income and it does not seek capital appreciation. Of course, really high income can sometimes only come from accepting more risk in investments. Junk bonds, now referred to as high yield bonds, pay high levels of interest precisely because the companies that issue them have soft credit ratings.
Income fund : a mutual fund providing for liberal current income from investments.
a unit or investment trust, or other collective fund, which aims to pay a high dividend to its shareholders by investing in bonds or shares which themselves produce good income, either through high rates of interest or high dividend yields.the focus of such a fund is resolutely on income and it does not seek capital appreciation. of course, really high income can sometimes only come from accepting more risk in investments. junk bonds, now referred to as high yield bonds, pay high levels of interest precisely because the companies that issue them have soft credit ratings.
Income fund