Income Fund

A type of fund that focuses on gaining income via investing for dividends and interest instead of capital appreciation.  Suitable for certain investors interested in capital preservation. However, the securities invested it may vary in terms of creditworthiness and their prices may fluctuate in accordance with movements in interest rates.  Dividend-paying stocks may also experience large shifts in price, which may pose additional risks for the investor. Also see, “Bond Fund, debt fund.”

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