Income-oriented funds aim to obtain the maximum income in the current period and pursue the current income of the fund as the investment goal. Its investment targets are mainly those securities with relatively stable returns, such as blue chips, bonds and negotiable certificates of deposit.

Income-based funds usually distribute the interest and dividends they earn to investors. Although the growth of this kind of fund is weak, the risk is correspondingly low, which is suitable for conservative investors and retirees.

The advantage is that the risk of investor's principal loss is reduced; The disadvantage is that the fund lost the opportunity to invest in high-risk securities with growth potential, and the development of the fund was limited.

Income-oriented funds are generally suitable for conservative investors, who often have low risk tolerance and want to invest quickly and get quick results, and hope to protect their capital.

There are basically two types of income-based funds:

(1) Under low risk, the income is constant and its income is relatively fixed, so some people call this income a fixed income fund.

(2) Strive to maximize the possible benefits, and at the same time use financial leverage. Because it mainly invests in common stock, it is called stock income fund.

Organized from Baidu Encyclopedia.

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