Popular income funds of 2017 you should know
An income fund is a mutual fund that focuses more on current income than the growth of the money invested. It targets stocks and bonds as investment opportunities because of the high levels of dividend and interest they give. It is an asset allocation fund and may be in the form of bond funds, stock funds or even real estate funds. They are often the destination of target date funds.
As of July 2017, the 10 best income funds based on their performance are: Boost NASDAQ 100 3x Leverage Daily ETP with a performance percentage of 85.14%, VT Morningstar Informed Smartfund Growth Strategy Z Inc with a percentage of 79.49, Boost EURO STOXX 50 3x Leverage Daily ETP with a 70.16% of performance, Neptune European Opportunities B Inc GBP with a 58.59 percentage of performance, Neptune European Opportunities B Accumulation GBP with a 58.58% of performance, VT Morningstar Informed Smartfund Cautious Strategy Z Inc with a 53.96% of performance, Aptus Global Financials B Inc GBP with a 52.99% of performance, Aptus Global Financials B Accumulation GBP with a 52.99% of performance, VT Morningstar Informed Smartfund Balanced Strategy Z Inc with a 51.04% of performance and Baillie Gifford Greater China B Accumulation with a 47.38% of performance.
TheStreet, an American finance news and service website has its methodology to arrive at the 10 best income funds. These funds include VictoryShares US Discovery Enh Vol (CSF), PowerShares S&P 500 Hi Dividend Low Vol (SPHD), WisdomTree Fundamental US HY Corp Bond (WFHY), UBS AG FI Enhanced Global HY ETN (FIHD), First Trust Pref Sec and Inc (FPE), Guggenheim BulletShares 2023 Hi Yield Co Bond (BSJN), First Trust Managed Municipal (FMB), PowerShares Natl AMT-Free Muni Bond (PZA), WisdomTree Fundamental US Short Term High Yield CB (SFHY), and PowerShares Preferred Port (PGX).
As much as it is understood that income funds are more about current incomes than growth, investors don’t necessarily have to sacrifice the capital growth for steady income.
According to Forbes, the top mutual funds to invest in this year would be Driehaus Emerging Markets Small Cap Growth Fund (DRESX which employs a growth equity investment concept. It has assets worth $319 million but is often overlooked by investors causing it to be lower in efficiency; Ridgeworth Seix Floating Rate High Income Fund (SAMBX) which focuses on floating rate bond funds. This primarily began when the U.S. Federal Reserve focused on maintaining low interest rates which led to inflation in the value of investment grade bonds. Because this could spell disaster if someone invests, central bankers targeted extremely low rates to improve job opportunities and higher wages. However, once interest rates started to rise, bond investors found themselves; losing out on bond exchange-traded funds. That is when the solution of floating rate bond firms was given. Now, should interest rates rise, investments that hold paper are exactly what investors require to surf the bond market meltdown; Vanguard FTSE All-World ex-US Index Fund (VFWIX) which as expensive stocks and compares valuations to determine current stock prices. Forbes also contends that 2017 will pay significant dividends of 6-7% to income investors mainly because rate hikes will be a letdown. To boost your dividends, trade in your common shares for the preferred variety. Your dividends will go up by 100 to 150%.