Holdings may be from domestic or foreign issuers, depending on the investment objective of the fund. Income is a secondary objective. Rising income is often a key objective. Income may be exempt from federal or state tax. Portfolios may contain bonds of varying quality ratings according to the objective of the fund.
Bond funds are suitable for income-oriented investors.
Dollar Cost Averaging with Mutual Funds Dollar cost averaging is a method of steadily increasing the amount of mutual fund shares you own by investing a fixed dollar amount at regular intervals. By investing a fixed amount on a set schedule, you are able to even out market ups and downs. Although dollar cost averaging cannot guarantee a profit or prevent a loss, it does allow investors to buy more shares of a mutual fund when the price is low and fewer shares when the price is high. This typically results in a lower average cost per share than if a constant number of shares of a mutual fund are purchased at set intervals. Dollar cost averaging is suitable for investors who wish to invest in mutual funds gradually, over time, in order to average out the price.