Retirees often seek the income from dividend distributions to augment their income. With reinvestment of dividends and capital gains distributions, your money increase at an even greater rate. When you redeem your shares, what you receive is the value of the shares. Income Funds Seek income through the dividends and income provided by stocks and bonds at regular intervals. Income may be reinvested automatically to increase capital appreciation Balanced Funds Capital gains and income earned from a mix of investments from bonds and stocks.
Bonds add stability during down and volatile periods, while stocks provide growth.
Stock Funds Includes a wide variety of funds seeking capital gains from small portfolios of 50 stocks to large portfolios of hundreds of stocks. Aggressive Growth Great for longer term investors who do not need their money within the next five years. Small-Cap funds invest in the stock of small and new businesses which have greater potential for growth, yet have higher risk of short term volatility. Growth Seek high returns, yet have less volatility than aggressive growth. Investment portfolios consist of large, medium and small sized companies.