Listed below are types of mutual funds that have income as a primary objective:
1. Income funds: These usually include a combination of bonds, dividend-paying stocks, and utility stocks to produce steady income and lower investment risk.
2. Municipal bond funds: These funds invest in tax-exempt municipal bonds issued by state and local governments.
3. Corporate bond funds: These are funds that invest in debt instruments issued by for-profit companies. They may invest in either investment-grade or high-yield bonds.
4. Government bond funds: These funds invest in safe U.S. government-backed bonds such as Treasury notes.
5. Ginny Mae (GNMA) funds: These funds hold securities backed by a pool of government-insured mortgages.
6. Global bond funds: These funds invest in bonds of overseas companies.
For additional information about mutual funds and the types of funds appropriate for different types of financial goals, read Unit 6 of "Investing for Your Future," an eXtension lesson, at www.extension.org/pages/Investing_for_Your_Future.
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