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Depending on what the investor opts for, the type of fund, and organization behind the fund, income funds pay out returns on a monthly or quarterly basis.

Income funds are mutual funds or exchange-traded funds that focus on the current income on a monthly or quarterly basis, without capital appreciation.

Fixed income refers to any type of investment under which the borrower or issuer is obliged to make payments of a fixed amount on a fixed schedule. For example, the borrower may have to pay interest at a fixed rate once a year, and to repay the principal amount on maturity.

Jump to: navigation, search. Fixed income analysis is the valuation of fixed income or debt securities, and the analysis of their interest rate risk, credit risk, and likely price behavior in hedging portfolios. The analyst might conclude to buy, sell, hold, hedge or stay out of the particular security.

An income bond is a type of debt security in which only the face value of the bond is promised to be paid to the investor, with any coupon payments being paid only if the issuing company has enough earnings to pay for the coupon payment.

You should invest in income funds when you want to earn a passive income on your investments without any intention of selling the finds and are not very keen on capital gains.