Current Income

AAA

DEFINITION of 'Current Income'

The investment objective for a moderately conservative portfolio of securities or mutual funds that provides high dividend and annuity payments to satisfy an investor's steady income requirements.

INVESTOPEDIA EXPLAINS 'Current Income'

Current income portfolios are often created for individuals in their retirement years because steady income is needed for living expenses. Income garnered from a current income fund is derived from bond interest payments, dividends and annuity payments.

A current income portfolio is moderately conservative, as it often contains a large percentage of fixed-income securities, in addition to other assets such as blue-chip stocks and annuities. A current income portfolio can also include mutual funds within the same asset categories and strategies, such as a government bond fund and a dividend fund.

RELATED TERMS
  1. Strategic Asset Allocation

    A portfolio strategy that involves setting target allocations ...
  2. Annuity

    A financial product sold by financial institutions that is designed ...
  3. Asset Allocation

    An investment strategy that aims to balance risk and reward by ...
  4. Blue Chip

    A nationally recognized, well-established and financially sound ...
  5. Bond

    A debt investment in which an investor loans money to an entity ...
  6. Portfolio

    A grouping of financial assets such as stocks, bonds and cash ...
Related Articles
  1. Bonds & Fixed Income

    Investing For Safety and Income Tutorial

  2. Options & Futures

    6 Asset Allocation Strategies That Work

  3. Investing Basics

    How And Why Do Companies Pay Dividends?

  4. Investing Basics

    5 Things To Know About Asset Allocation

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center