Business and Personal Finance Dictionary

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• INCOME FUND
  
  Income funds are mutual funds whose investment objective is to produce current income rather than long-term growth, typically by investing in bonds. The amount of income a fund may generate is related to the risk posed by the investments that the fund makes.A fund that buys lower-grade bonds will often pay more income than a fund buying investment-grade bonds. But under certain market conditions, the riskier fund may pay less or put your principal, or investment amount, at risk.
  
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