Bonds are issued by corporations or government entities and generally pay investors a fixed amount of interest each year. A bond fund is typically comprised of debt instruments, such as bonds and mortgage-backed securities.
What Is an Income Fund?
- An income fund is a mutual fund or exchange-traded fund (ETF) that seeks to generate current income through dividends or interest payments.
- Some also provide an opportunity for capital appreciation.
Types of Income
There are a number of different types of income-producing funds, each with their own characteristics and level of risk.
Bond Funds
High-Yield Bond Funds
High-yield bonds are issued by corporations with lower credit quality ratings. They are riskier than bonds issued by higher rated investment-grade companies, so they often offer higher yields.
Municipal Bond Funds
Municipal bonds are issued by state and local governments in the US as well as other public authorities, such as school districts. Generally speaking, interest on municipal bonds is exempt from federal income taxes. In some states, interest on bonds issued by that state, and the municipalities within it, are also exempt from that state’s income taxes.
Global Bond Funds
Global bond funds invest in a wide variety of bonds issued by various public and private entities around the world, including sovereign governments, international agencies, state and local authorities, and private corporations.
Equity Income Funds
Equity income funds purchase equity, or stock ownership, in companies. These funds generally seek capital appreciation as the value of the stocks in the fund increases, and may also seek to generate income from stocks that pay dividends.
Hybrid or Multi-Asset Funds
Hybrid or multi-asset funds may invest in a number of traditional equity and fixed income strategies, index-tracking funds, financial derivatives as well as alternative investments, such as real estate investment trusts (REITs) and commodities.
Our Income Funds
We offer a wide range of mutual funds that can help investors generate income.
Franklin Income Fund
The fund seeks to maximize income, while maintaining prospects for capital appreciation, by investing in a diversified portfolio of stocks and bonds.
Broad Diversification.
Our fund has a diversified portfolio across several different asset classes, including dividend-paying stocks, bonds and convertible securities.
Experienced Management Team.
Managers Ed Perks, Matt Quinlan, Todd Brighton and Richard Hsu have managed the fund since 2002, 2012, 2017 and 2017, respectively.
Our Income Funds
We offer a wide range of mutual funds that can help investors generate income.
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What Makes Franklin Templeton Different?
Commitment to Active Management
Our belief in the value of active management has consistently guided our investment decisions and differentiates us from passive investors. Active asset management provides potential for outperformance and risk diversification relative to the broad market.
Decades of Specialized Expertise
Our seasoned investment teams, each providing their own unique style and perspective, build portfolios based on proprietary methodologies.
Global Integrated Platform
The around-the-clock support of our global investment platform allows our investment teams to focus on research and portfolio management.
How Do I Buy Income Funds from Franklin Templeton?
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