Bob Brinker's Marketimer

  Monday November 20, 2017

Next Marketimer © Mailing Date: November 6th


© 1997-2017
Privacy Policy

Hosted by:
@ ADPAD INC.




EXAMPLES OF INCOME FUNDS
Learn even more about this topic with the Encyclopedia of Personal Finance™

Income funds invest in securities that pay current income in the form of dividends or interest. For example, stocks pay dividends, and bonds and money market investments pay interest.

Equity income funds invest primarily in dividend-paying stocks (such as preferred stock or common stock).

They favor stocks of large, established companies because such stocks are not very volatile and have a good record of paying dividends. Stocks of companies representing the utilities and financial services industries are particularly used. Equity income funds may have a secondary objective of principal growth. A preferred stock is one that pays regular dividends.

Many income funds choose both stocks and bonds. These mixed-income funds have a higher percentage of bonds than the equity income funds do.

Bond income funds are made almost entirely of bonds.

There are several types of them:

• Municipal bond funds, which invest in bonds issued by state and local governments.

• U.S. Government bond funds, which choose bonds issued by the federal government.

• International bond funds, which invest in companies and governments of foreign nations.

• Corporate bond funds, which are made of bonds issued by private companies. One of the well-known types of corporate bonds is the high-yield bond.

• Convertible securities funds, which contain bonds that can be converted into stock.

Money market funds are also income-oriented.

In our next section, you learn about the performance of income funds.




LEARN EVEN MORE WITH THE ENCYCLOPEDIA OF PERSONAL FINANCE. CLICK HERE!

Powered by


Copyright ©1999-2017, Precision Information, LLC. All Rights Reserved