Investment Income


DEFINITION of 'Investment Income'

Income coming from interest payments, dividends, capital gains collected upon the sale of a security or other assets, and any other profit that is made through an investment vehicle of any kind.

BREAKING DOWN 'Investment Income'

Generally, most people earn a large portion of their total net income through employment income. However, disciplined saving and investment in the financial markets can grow moderate savings into large investment portfolios, yielding an investor a large annual investment income.

In income statements of publicly traded companies, you will commonly see an item called investment income (or losses); this is where the company reports the portion of the net income that was obtained through investments made with surplus cash as opposed to being earned with the company's usual line of business.

  1. Disqualifying Income

    A type of income that can disqualify an otherwise eligible taxpayer ...
  2. Portfolio Income

    Income from investments, dividends, interest, royalties and capital ...
  3. Investment Vehicle

    A product used by investors with the intention of having positive ...
  4. Capital Gain

    1. An increase in the value of a capital asset (investment or ...
  5. Investment

    An asset or item that is purchased with the hope that it will ...
  6. Taxable Income

    The amount of income that is used to calculate an individual's ...
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  1. What are the differences between a bond's yield to maturity and the spot rate?

    One should expect income when buying stocks in the consumer packaged goods sector. This sector is considered a defensive ... Read Full Answer >>
  2. What is the difference between underwriting and investment income for an insurance ...

    Underwriting and investing are two different methods an insurance company uses to generate income. The underwriting income ... Read Full Answer >>
  3. What is the difference between capital gains and investment income?

    The difference between capital gains and other types of investment income is the source of the profit. Capital refers to ... Read Full Answer >>
  4. Do mutual funds pay dividends?

    Depending on the specific assets in its portfolio, a mutual fund may generate income for shareholders in the form of capital ... Read Full Answer >>
  5. How often do mutual funds pay capital gains?

    The frequency with which mutual funds pay capital gains varies. However, funds that generate a profit within a given year ... Read Full Answer >>
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    Tax-exempt mutual funds can be found at many prominent investment firms. Most mutual funds offer a variety of investment ... Read Full Answer >>

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