Income fund
Stock Investing Definition

The definition of Income fund is:

A type of mutual fund designed to provide current income, either on a monthly or quarterly basis. Share prices of income funds are not fixed; they tend to fall when interest rates are rising and to increase when interest rates are falling. These funds invest in corporate, government, or municipal bonds, as well as pools of mortgage-backed securities (such as Government National Mortgage Association (Ginnie Maes)) and occasionally, high-yielding stocks.

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