INCOME FUNDS

Income funds are structured to provide regular income dividends to their investors. They focus on paying dividends as their top priority while de-emphasizing the growth in value of their portfolios.

Income funds place a large percentage of their funds into preferred stocks and bonds because these investments yield relatively stable current income. They may also invest in cash and money market securities.

Income funds are popular with investors who want stable income from their mutual funds.

There are also funds that involve paying income and seeking growth all in one. You will learn about them next.