What do income funds invest in

If this happens, the investor may not receive the full value of their principal investment. You can manage these risks by diversifying investments within your fixed income portfolio. How can I invest in fixed income? Customize your strategy with SMAs. Through direct ownership of securities, investors can customize their portfolio to meet their needs. Explore model portfolios. Our tool allows financial advisors to build personalized model portfolios for any risk profile.

Explore the tool Explore the tool. Free up time to grow your business. Managed portfolios are a cost-effective way to help clients across risk profiles meet their objectives.

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Turn your investment into income. For individuals who rely on their investments for income, a diversified approach to stock and bond investing can help. Generate income Generate income. Stay prepared for interest rate changes. Certain bond funds can help provide positive returns regardless of whether rates are rising, falling or flat.

Navigate changing interest rates Navigate changing interest rates. Explore more. Keep exploring. Total Return Fund. Strategic Income Opportunities Fund. Low Duration Bond Fund. Core Bond Fund. CoreAlpha Bond Fund.

Impact Bond Fund. High Yield Bond Fund. Income Fund. Floating Rate Income Fund. High-Yield Bond Funds High-yield bonds are issued by corporations with lower credit quality ratings. Municipal Bond Funds Municipal bonds are issued by state and local governments in the US as well as other public authorities, such as school districts.

Global Bond Funds Global bond funds invest in a wide variety of bonds issued by various public and private entities around the world, including sovereign governments, international agencies, state and local authorities, and private corporations. Equity Income Funds Equity income funds purchase equity, or stock ownership, in companies. Hybrid or Multi-Asset Funds Hybrid or multi-asset funds may invest in a number of traditional equity and fixed income strategies, index-tracking funds, financial derivatives as well as alternative investments, such as real estate investment trusts REITs and commodities.

Our Income Funds We offer a wide range of mutual funds that can help investors generate income. Franklin Income Fund The fund seeks to maximize income, while maintaining prospects for capital appreciation, by investing in a diversified portfolio of stocks and bonds. Our Income Funds. We offer a wide range of mutual funds that can help investors generate income. Franklin Income Fund - Advisor Class. Session Timeout You have been inactive for 0 mins.

Stay logged in or you will be logged off in 60 seconds. Stay logged in! Show menu Hide menu 1. Why invest? Investing video 3. Learn about investing 4. Learn about accounts 5. Plan and review 6. Getting started. Investing for income or growth Investing for income If you require regular income you can invest in a fund that pays out dividends from equities or interest from bonds, rather than have your returns invested back into the fund. This is a measure of income as a percentage of the value of the fund, but the amount is not guaranteed and you should take care when comparing the yields of different funds: Equity funds quote a historic yield figure usually covering the previous 12 months up to the last dividend declaration date and based on the fund price at that date Bond funds, on the other hand, quote a distribution yield which reflects the amount that the fund may distribute over the next twelve months although these figures are not guaranteed and may change as a percentage of the share price of the fund on the last working day of the previous month Investing for growth Investors looking to grow their capital over time should think about equity funds which adopt a growth style.

The two types of funds most often associated with capital growth are: Equity funds that invest in company shares Multi-asset funds — investing in a range of asset classes Income, growth or both? Active or passive investing Learn about the differences between passive and active investing as well as which approach might be right for you here. Ethical investing There are different ways to approach ethical investing; we look at what these are and what these funds invest in. Multi-asset investing There are different approaches you can have with multi-asset investing.

Equity Investment An introduction to shares, investment trusts and exchange traded funds. Morningstar ratings Learn the different ways investments are rated by our research partner Morningstar, so you can choose the most suitable ones when building your portfolio. Place a trade Log In Required Quickly and easily enter your order. Analyze your bond portfolio Monitor risk, interest rate sensitivity, and more. Bond special report Learn how to navigate bond market fluctuations.

Fidelity does not provide legal or tax advice, and the information provided is general in nature and should not be considered legal or tax advice. Consult an attorney, tax professional, or other advisor regarding your specific legal or tax situation. Foreign investments involve greater risks than U. In general, the bond market is volatile, and fixed income securities carry interest rate risk. As interest rates rise, bond prices usually fall, and vice versa.

This effect is usually more pronounced for longer-term securities. Fixed income securities also carry inflation risk, liquidity risk, call risk, and credit and default risks for both issuers and counterparties.

Unlike individual bonds, most bond funds do not have a maturity date, so holding them until maturity to avoid losses caused by price volatility is not possible. Skip to Main Content. Search fidelity. Investment Products.