What is an Income Fund?

Sep 25, 2006 2 Replies
G

The fund statistics I find all seem to show the percentage growth of the fund over, say, the last 5 years no matter whether they are called "Growth" funds or "Income" funds. Whilst I agree with this presentation for Growth funds, surely an Income fund should emphasize the percentage income returned over the previous years not the growth. If the fund is producing high income I would expect very little growth. Or is it that Income funds are really Growth funds where excess units have been sold to produce income.



Thanks



Mike



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T

Can't you find the distributions in money terms (i.e. pence per unit) for the past few years? The annual reports give them for the current year and the previous year. Usually they have the past 5 years records at the back.

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G

To the extent that these statistics are any use at all, I would have thought that total return including income and capital growth/loss would be the best measure. After all, it would be possible to produce a fund with magnificent income but declining capital.

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