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The definition of an income fund is a mutual or other fund that has it's core investments in established dividend paying stocks and fixed income. These funds and the stocks within it pay regular dividends. They are more predicatble, but offer less of a chance for high capital gains later on.
These funds normally perform within a range in up and down years for the stock market. An income fund can fit into any portfolio, but it is best for people who would like or need income and who do not want to take on too much risk in the future.
Copyright  2006 American Investment Training, Inc.
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