The rest is invested in bonds as the modifier suggests. Income funds seek large dividends from the companies that they select. Thus usually their portfolios consists of middle to large-sized firms. In addition, portfolio activity is low. As long as the companies make a profit, you can anticipate a steady income from your investment.
Income funds are normally better than bond funds in the long run.
This is normally indicated by the rising value, or capital appreciation, of the stock. Should the fund manager decide to sell the shares of a stock, you are entitled to any profits made from the sale as a result of the appreciation in value. These returns are called capital gains. Since the portfolio depends upon the shrewdness of the manager, these funds tend to be risky. Lastly, the most dangerous and volatile type of mutual fund is the aggressive growth fund.