Income Investing

by Wilshire Finance Partners

Income Investing targets the growth in an individual´s income rather than the Profit that results when the price of a security held by a mutual fund rises above its purchase price and the security is sold (realized gain).Traditionally, this form of investing is aimed at a regular (or fixed) return, such as stocks, bonds and/or preferred stock.

Income can also be achieved as a pension created by an employer for the benefit of an employee, which is commonly referred to as an occupational or employer pension. Trust deeds are another example of an income investment vehicle. A trust deed is often used when mutual funds are set up as a trust. Information that may be documented includes the powers of the trustee and any restrictions on investment vehicles.