Fund Types

Income Fund

Definition

What is Income Fund?

A fund designed primarily to generate regular income from interest, dividends, or rent.

Example in practice

A retiree invests in an income fund that pays quarterly distributions.

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A mutual fund that invests mainly in short-term, relatively liquid instruments such as treasury bills and deposits.

A fund that invests primarily in shares and seeks long-term capital growth.

A fund focused on income-producing debt securities such as government and corporate bonds.

A single, relatively large investment made at one time instead of through repeated contributions.

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