An investment objective of many fixed income funds. Capital appreciation is not a consideration for these funds. In general, income funds seek to provide current income rather than growth of capital. For fixed-income funds it is the Lehman Brothers Aggregate Bond Index. In general, index funds seek the same or a slightly better return that the index they mirror.
Index funds tend to charge low administrative expenses.
A personal savings plan that offers tax advantages to save and invest for retirement. Contributions are often tax deductible in whole or in part, depending upon individual cirumstances, including compensation levels and participation in an employer sponsored qualified retirement plan. Income derived from investments in a traditional deductible or nondeductible IRA are tax deferred until withdrawn. Under certain circumstances, withdrawals from a Roth IRA are tax free. Inflation risk is often mentioned in relation to conservative fixed income funds.