Comprehensive Guide to Top Income Investment Funds for 2017
This comprehensive guide explores top income investment funds of 2017, highlighting their performance, types, and strategic value for income-focused investors. From leveraged ETFs to stable mutual funds, discover key options to diversify your portfolio, understand risk factors, and seize opportunities in the evolving financial landscape of 2017 for steady income and growth.
Income investment funds are a category of mutual funds designed to provide investors with a steady stream of income rather than focusing solely on capital appreciation. These funds typically allocate their assets into dividend-paying stocks, bonds, and real estate investments, aiming to generate consistent cash flow that can serve as a reliable income source, especially for retirees or income-focused investors. The strategic selection of assets within these funds makes them an essential component of a diversified investment portfolio, balancing risk and reward effectively. Understanding the different types of income funds and their performance trends in 2017 can help investors make informed decisions when selecting the right investment vehicles.
Throughout mid-2017, several income funds stood out due to their impressive performance and steady returns. Notably, the Boost NASDAQ 100 3x Leverage Exchange-Traded Product (ETP) delivered a remarkable 85.14% return, capturing the aggressive growth potentials of leveraged derivatives tied to the NASDAQ 100 index. Such leveraged funds, while offering higher returns, also come with increased risks, making them suitable for seasoned investors with a high risk tolerance.
Another top performer was the VT Morningstar Informed Smartfund Growth Strategy Z Inc, which achieved nearly 79.49% returns. This fund focuses on a balanced approach, investing in growth-oriented assets while maintaining a level of risk management. Similarly, the Boost EURO STOXX 50 3x Leverage ETP posted a 70.16% return, providing investors with exposure to European blue-chip stocks amplified through leverage. These funds exemplify the broader trend of leverage-enhanced products aiming to maximize short-term gains for sophisticated investors.
In addition to these, several other notable income funds have gained attention. Neptune European Opportunities GBP and VT Morningstar Informed Smartfund Cautious Strategy Z Inc offer promising performance metrics, catering to investors seeking moderate risk exposure while capturing growth within European markets. The evaluation of these funds relies heavily on specific methodologies, such as performance consistency, risk-adjusted returns, and management quality, as employed by financial analytics firms like TheStreet.
Beyond mutual funds, exchange-traded funds (ETFs) play a vital role in the income-focused investment landscape. Funds such as VictoryShares US Discovery Enhanced Volatility, the PowerShares S&P 500 High Dividend Low Volatility ETF, and WisdomTree US High Yield Corporate Bond ETF are some of the most popular income-oriented ETFs. These funds emphasize current income through dividend yields and bond coupons while also maintaining a keen eye on volatility and risk mitigation, appealing to income-seeking investors who prioritize stability alongside returns.
While these funds primarily aim to provide dependable current income, their growth potential should not be overlooked. For instance, the New Economy Fund launched in 2015 invests in foreign equities with high growth prospects, including technology giants like Netflix, Amazon, and healthcare firms. This fund is designed to achieve long-term capital appreciation while providing income through dividends received from these stocks, making it suitable for investors with a longer-term perspective seeking both income and growth.
Established and historically proven funds also hold significant appeal for income-focused investors. The AMCAP fund, managing assets worth approximately $45 billion, has delivered an impressive long-term annual return of 11.6%. Its investment focus is on technology and healthcare stocks, sectors known for their growth potential and dividend offerings. Similarly, the Growth Fund of America and Washington Mutual Investors Funds have built reputations for consistency and diversification, holding investments in large-cap companies such as Amazon, Google (Alphabet), and Coca-Cola. These funds are often preferred for their stability and proven track record of generating steady income over the years.
Financial publications like Forbes have pointed out that 2017 presented unique opportunities for income-focused investors. Funds such as Driehaus Emerging Markets Small Cap Growth and Ridgeworth Seix Floating Rate High Income offered appealing prospects, especially given the evolving interest rate environment. Rising interest rates can enhance dividend yields on certain stocks and bonds, making preferred shares and floating-rate instruments particularly attractive. These investments can serve as valuable components of an income-generating portfolio, providing both security and growth potential as part of a broader financial strategy.
In conclusion, 2017 was a dynamic year for income investment funds, marked by innovative leveraged products, stable ETFs, and long-standing mutual funds offering reliable performance. Investors seeking regular income and growth opportunities should consider the diverse options outlined, aligning their risk tolerance and investment horizons with the appropriate funds. Whether via equities, bonds, or hybrid vehicles, the varied landscape of income funds provides numerous pathways to achieve financial stability and growth, emphasizing the importance of diligent research and strategic asset allocation.
