Growth And Income Funds
Growth and income mutual funds invest in both equity and debt securities, mainly for the purpose of producing current income. These funds typically invest no more than half their assets in stocks. Income can come from a variety of sources, with widely differing risks, and so to achieve their goal of providing current income, funds use a wide variety of investment styles and asset mixes. The volatility of individual funds will vary depending on the source of their income. For example, Oppenheimer Strategic Fund has at times had almost 90 percent of its assets in bonds, while Value Line Income Fund has held as much as 75 percent of its assets in stocks.
If you are looking for income, think twice before simply choosing the highest payer. Consider whether a given fund will not only add income to your portfolio, but will also have the potential for growth. Within the income funds group are funds to suit almost every investor. Look for the fund with the asset mix, return and risk level that meets your particular needs. Subscribers to Microsoft Investor can use the stock screening capabilities in Finder to get a listing of the current top-performing growth and income funds.