income fund

income fund definition - business

income fund

An investment company whose main objective 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.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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