These funds invest in utilities, industrials, and other seasoned stocks. They work to maximize dividend income while also generating capital gains. These funds are suitable as a substitute for conservative investment in the stock market. Income funds focus on dividend income, while also enjoying the capital gains that usually accompany investment in common and preferred stocks. These funds are particularly favored by conservative investors.
International funds hold primarily foreign securities.
These funds are an vital aspect of many portfolios, but any individual fund may prove too volatile for the average investor as their sole investment. When you buy one of these funds, you are betting on a single part of the foreign markets. Asset allocation funds don't invest in just stocks. Instead, they focus on stocks, bonds, gold, real estate, and money market funds. This portfolio approach decreases the reliance on any one segment of the marketplace.