investing income

Individuals seeking investment opportunities have many options from which to choose. In general, investors place their wealth with an investment company. There are three basic types of investment companies- mutual funds, closed-end funds, and unit investment trusts. Each provides opportunities for investing income. A mutual company is defined as a company the collects money from several investors and in turn invests the money in securities such as stocks and bonds. A closed-end fund is unique in that the company's shares are not continuously for sale, but sold to the public for an initial period and then later sold only on a secondary market. A unit investment trust is more commonly known as a UIT. A UIT generally has a static investment portfolio, which allows investors to know with certainty in what stocks and bonds they are investing.

Fast Facts

UITs, or unit investment trusts, have a predetermined termination date at which the UIT will dissolve. This can be a relatively short amount of time or as long as fifty or more years.
Mutual funds, closed-end funds, and UITs are subject to regulation by the SEC (Securities and Exchange Commission).

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Fixed Income Investing: A Stable Source of Income

Fixed income investments refer to any investment that has a fixed and stable return. This contrasts with equi...
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Mutual Fund Overview

This article is an overview of Mutual Funds, what they are, what they invest in, types of Mutual Funds and thi...
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Bond Fund

In dealing with bond fund or an income fund, the descriptions are identified as terms which describe company i...
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Best Money Market Funds

A money market fund is a mutual fund style of investing. Operators of money market funds invest in short-term...
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What Is a Bond?

A bond is a debt instrument--basically an IOU--where an investor is loaning money to the US government, a stat...
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