WHAT KINDS OF INVESTMENTS ARE INCLUDED
IN INCOME FUNDS?
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Generally, income funds choose investments that are
likely to pay interest or dividends. The more interest and
dividends received by income funds, the more they can pay in
dividends to shareholders.
Income funds whose secondary objective is
conservation of principal tend to favor conservative securities in
their portfolios. They are likely to invest heavily in high-grade
bonds and blue chip preferred stocks.
Income funds may also invest in cash and money
Some income-fund specifics are on the next