income fund

Income Fund

A mutual fund that seeks to provide stable current income by investing in securities that pay interest or dividends.

Investopedia Commentary

Income funds typically invest in utility stocks and blue chips.

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See also: Blue Chip, Dividend, Interest, Mutual fund

income fund

An investment company, the main objective of which is to achieve current income for its owners. Thus, it tends to select securities such as bonds, preferred stocks, and common stocks that pay relatively high current returns. This type of fund is most appropriate for someone seeking high current income rather than growth of principal. Also called income-mixed fund.