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Mutual Funds - Balanced/Equity Income Funds
What they invest in:

Equity income funds seek high current yield by investing primarily in equity securities of companies which pay high dividends. Unlike interest payments on bonds, dividends on equity securities can change as companies raise or lower their dividends. Since yield-oriented stocks are more volatile than comparably rated fixed-income securities, equity income funds offer less stability of principal than fixed-income funds. Balanced funds are more evenly invested in equities and income securities.

     
Suitable for: Balanced and equity income funds are suitable for conservative investors who want high current yield with some growth.

 

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