Even if you love your job, it might not give you the financial stability that you want. Increasing household income can be done in several ways, but one of the most popular methods is by investing in income funds. By investing in mutual funds, individuals receive quarterly, monthly, or annual income, with the possibility of high-yield bond funds increasing that income even further.
Investing in income funds is a way of reaping awards with minimum effort, as all is required of the investor to see gains is to invest in the right fund. With that said, investments come with a sustainable amount of risk, which is why it’s essential to do your homework on the different income funds available before committing to the prospect.
1. Vanguard Dividend Growth Fund
If you’re looking for an income fund that offers a low expense ration and lots of promise for returns, then the Vanguard Dividend Growth Fund is for you. With this income fund, investors can see a return of up 3.6% after just one year. Even better: in three years, these same individuals will see a return of roughly 9.99%. Two years after that, individuals will see a return of 11.6% with the Vanguard Dividend Growth Fund.
Promise for return aside, the Vanguard Dividend Growth Fund stands out from the rest mainly because it offers one of the lowest expense rates (.33%). With an expense rate as low as this, individuals will be able to secure more of that money for themselves.
2. The Schwab Monthly Income Fund
The Schwab Monthly Income Fund is another income fund available, and it’s ideal for those looking for a minimum investment with the guarantee of higher income. Investing in income funds isn’t always a cheap venture, but with the Schwab Monthly Fund, your bank account won’t run dry as it requires a low expense ration (.65%) and a minimum investment of $100.
This income fund is ideal for those in it for the long-run, as with the Schwab Monthly Income Fund, individuals can earn as much as 60% on their investment in 10 years.
3. The Fidelity Strategic Income Fund
Despite having the highest expense ration on this list (.7%), the Fidelity Strategic Income Fund is another option for investors as it comes with the potential for the highest return. Over ten years, the Fidelity Strategic Income Fund has earned as high as 5.8% annually and requires a minimum investment of $2,500.
Takeaway
Investing in income funds is a great way to increase household income, and some funds are better suited for that end goal than others. Funds mentioned in this article are among those suited to growing your bank balance. Just remember, however, that with any investment comes some risk, so know everything there is to know about your chosen income fund before 100% committing.
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