income fund

Definition

A mutual fund which emphasizes current income in the form ofdividends or coupon payments from bonds and/or preferred stocks, rather than emphasizing growth. Income funds are considered to be conservative investments, since they avoid volatile growth stocks. Income funds are popular with retirees and other investors who are looking for a steady cash flow without assuming too much risk.

Use income fund in a sentence

You should try and male sure that you are always following an income fund and get out before it drops.

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The parents set up an income fund for each of their children to help support them if something were ever to happen as they got older.

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His mother was set up with a swath of income funds with her retirement package, so that she had guaranteed income for the rest of her life.

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growth and income fund average weighted maturity