Generating passive income can help investors cover everyday expenses and achieve their retirement goals. Accumulating assets like stocks and real estate can lead to gains, but some funds aim to reward investors with steady cash distributions.
These funds have relatively high yields and can be a reliable source of income. Income funds tend to be less volatile than funds that focus on growth stocks. The trade-off is that during a bull market, income funds may underperform growth-oriented funds. But the flip side is that income funds tend to have more resilience during bearish markets.
This post originally appeared at U.S. News & World Report.