What Is a Fixed Income Fund?
A fixed income fund is a mutual fund strategy that makes it possible for investors to generate an ongoing income from the investment. All securities selected for inclusion in the fund pay some sort of regular interest payment or dividend, resulting in residual income for the fund’s investors. The focus with a fixed income fund is not on the capital appreciation of the securities per se, but on their ability to consistently produce income. A number of different types of investments may be included in a fixed income fund. One of the more common investments that is secured for inclusion in this kind of managed fund is the corporate bond. It is not unusual for bonds issued by companies to provide monthly or quarterly interest payments to investors, making the investment an ideal fit for a mutual fund geared toward generating a steady flow of income for investors.
