Tuesday, December 28, 2010

Dividends and Interest

Mutual funds and other managed investment funds will generate income from their investments through the course of a year in the form of dividends and/or interest. Even funds with long term capital appreciation goals will tend to generate this income. In the case of mutual funds this income will be distributed to investors after covering fund expenses. Some investment funds are established solely for the purpose of maximizing income generation and distribution, and are targeted at investors who seek to generate income from their investments e.g. investors that are retired.

Synonyms: Dividends, Interest, Investment Income, Income fund, Distributions

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