2. Stock Income Funds

Most ordinary and frequent type of stock income fund mainly invests in utilities. These funds produce a monthly dividend income for investors seeking higher yields than possible in case of bond funds. Shares prices of utility funds are inclined to remain fairly stable, as most of their underlying holdings do. The funds which invest in preferred stock offerings also remain relatively constant in price and yields dividends at competitive rates.

Also Check Out - Tips to Make Money from Global Warming

3. Specialty Fixed-Income Funds

There are two crucial types of income funds which do not invest in bonds. One is Prime Rate Funds, which are also known as Floating Rate or Bank Loan Funds. These funds invest mainly in Senior Secured Loans which banks made to corporations and are usually fully guaranteed. These funds also tend to differ somewhat in terms of liquidity; many of them are easy to get only on a monthly or quarterly basis.

Also Check Out - How to Make the Most of Your ATMs?