If you need income from your mutual funds’ portfolio, then an income fund will be a better choice. Income funds usually buy government bonds, corporate bonds and other debt securities that pay interest regularly. Government securities such as treasury bills and highly rated corporate bonds are two of the most common holdings in an income fund. Income funds. Income look to provide income to investors both in declining and rising interest rate scenarios. The fund manager will achieve this by active management of the portfolio. Income funds are often differentiated by maturities of the securities that they invest in, such as short term, medium term, or long term.
Best Mutual Funds to Invest in for the Long Term
December 4, 2020