Some reputable mutual funds that focus on income include Vanguard Dividend Growth, T Rowe Price Real Estate Fund, Fidelity Freedom Index Income Fund and T Rowe Price Equity Income Fund, notes Forbes. Mutual funds are professionally managed investments that pool funds from shareholders to trade in various holdings.
The Vanguard Dividend Growth is designed to offer investors dividend income and capital appreciation. This fund invests in large companies that show potential to generate a dividend, thus offering exposure to investors seeking to invest in dividend-focused companies.
T Rowe Price Equity Income Fund is a suitable fund for young investors planning to boost income and take some risk. The fund places most of its holding in stocks and has a history of paying high dividends. T Rowe Price Real Estate Fund offers people exposure to real estate and good income. The investment seeks long-term growth by combining current income and capital appreciation.
Real Estate Investment Trusts has seen consistent annual growth in recent years as of 2015 and offers higher than average dividend pay. Fidelity Freedom Index Income Fund has the lowest fees, making the return from this fund better or on par with most competitors. Additionally, the fund promotes a mix of the domestic equity fund, international equity fund, bond fund and short-term funds, according to Kiplinger.