Mutual funds that invest primarily in instruments that generate fairly constant annual cash flows such as bonds and preferred stocks are ____.
A) income funds
B) growth funds
C) value funds
D) money market funds
E) social funds

Question

Quizplus · Accepted Answer

Mutual funds that invest primarily in instruments that generate fairly constant annual cash flows are known as income funds. These funds are attractive to investors who are seeking a regular income stream from their investments. Examples of instruments that income funds might invest in include bonds and preferred stocks.

Mutual Funds That Invest Primarily in Instruments That Generate Fairly