Income Option
Definition
What is Income Option?
A fund option designed to pay eligible income to the investorA person or organisation that commits capital with the expectation of a financial return. rather than retain all of it.
Example in practice
How This Looks in Practice
A retiree selects quarterly distributions from an income-oriented bond fundA fund that invests mainly in bonds with the aim of earning interest income and possible capital gains..
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Related Terms
Accumulation Option
A fund option that retains or reinvests income so it contributes to unit-value growth.
Plans & OptionsGrowth Option
An option focused on long-term capital appreciation rather than regular cash distributions.
Plans & OptionsDividend Option
An option under which a fund may distribute declared income or gains to unitholders.
Fund Structure & RegulationCollective Investment Scheme
A regulated arrangement that pools investors' money for investment according to a common objective.