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Fixed income funds provide investors with important features like monthly income, portfolio diversification, professional money management, and daily liquidity. But how do you know which combination of funds may be best suited to your investing goals?
Some money managers believe you should think of the income portion of your portfolio in terms of three categories:
The first category includes extremely stable and liquid investments, such as taxable or municipal money market funds.
The second category includes relatively stable investments that offer moderate yields and some principal protection (e.g., longer duration Treasury securities and high-quality municipal or corporate bonds).
The third category includes high yield investments, for potentially higher but more volatile returns from assets to be invested over a period of two or more years.

This information was copied from fidelity.com
Bond are consider fixed income.
A balance fund that has both bond and stock are some times called growth and income funds.

2007-09-15 11:55:33 · answer #1 · answered by S D 2 · 0 0

Growth and income funds generally hold dividend paying common stocks, Preferred stocks which pay dividends before the common stocks. Convertible stocks that pay dividends but can be exchanged for common stock at certain price points. They also have a portfolio of bonds as the major source of income. They are a good fund in 401K's as the income, actually dividends are not taxable till you withdraw proceeds when retired. They are a little less volatile than a pure growth funds of all stocks.

2007-09-15 07:30:54 · answer #2 · answered by redd headd 7 · 0 0

Too add to the previous answer. G & I funds are typically all equities (stocks). A bond fund as the name would states is pretty much all bonds. Bond funds can provide some growth, but not much. They are typically used for income. Equity funds are typically used for growth.

2007-09-15 08:58:07 · answer #3 · answered by bushmaster19772002 2 · 0 0

maximum mutual funds require a minimum of $2000 to commence, even nevertheless you will get in with$a hundred in case you place up an automated deposit of $50/month. while making an investment in those, do your homework, only as you're able to as in case you have been procuring a vehicle or person inventory. look on the shifting averages, see how they have peformed over the final a million, 3, and 5 years. look on the expenditures. attempt to no longer get one with an in improve or back end load. there is hundreds of spectacular no load funds available. ---

2016-11-14 12:37:15 · answer #4 · answered by ? 4 · 0 0

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