This is a bit confusing! Income funds include all income-investing securities… which can be common stock, preferred, and bonds. But the first paragraph says that income funds ONLY consist of stock, not bonds.
Thanks for pointing this out - I agree, it’s a bit confusing. What we’re trying to say is growth & income funds (those two terms together, not separate) only invest in dividend-paying stock. It’s not saying growth, and separately income funds. Does that make sense? If it still doesn’t, here are the specifics:
Growth funds - invests only in common stock
Income funds - general name for a fund that invests in any income-producing security (stocks and bonds)
Growth & income funds - invests in income-producing stocks (no bonds)
Does that answer it? If not, please respond or DM me.