Fixed-income fund
A collective investment scheme that invests in bonds, CDs, preferred stock, or other fixed-income instruments.
Fixed-income funds generally have far more bonds than stocks. These funds are a good idea if you want to invest in a mutual fund, but you do not think that you can afford to take much of a risk.
For fixed-income funds, it is the T-bill. The R-squared number ranges from zero to 100. A score of 100 means a perfect correlation with the benchmark. A score of 85 means an 85% correlation.
At the fundamental level, there are three varieties of mutual funds: Equity funds (stocks), Fixed-income funds (bonds) and Money market funds. All mutual funds are variations of these three asset classes.
The goal of the manager depends upon the type of fund; a fixed-income fund manager, for example, would strive to provide the highest yield at the lowest risk.
Fixed-Income Securities: Another term for bonds, which pay a fixed rate of interest until they mature. Bond mutual funds are called fixed-income funds, ...
While there are a variety of styles, there are nine basic investing styles for both equity and fixed-income funds. For stock funds, company size and value/growth characteristics determine the style.
One way around this problem is to allocate a portion of assets to a fixed-income fund or funds, then rotate money in and out of equity holdings as dictated by the monthly targeted return.
Benchmark Index
Indicators used to compare and evaluating a fund's performance. The most common benchmark for equity-oriented funds is the S&P 500 Index. For fixed-income funds it is the Barclays Capital Aggregate Bond Index.
The net asset value of the fund is reduced by the amount of the distribution. For equity funds, these amounts are usually paid out once a year, in December. Fixed-income funds may include capital gains in their monthly distributions.
At the same time, an individual hoping to pad the income portion of his or her portfolio may find the healthy dividends paid by a high-yield fixed-income fund or a utility-heavy equity fund quite appealing.
 See also: Income, Market, Return, Income fund, Investment
  
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