It happened two years ago in short-term world income funds.

Neither of his funds, though, has been a typical growth and income fund.

However, investors now have the option of global income funds, which can help.

Therefore, income funds with millions of dollars in hand can drive good bargains.

Anyone who can readily figure that out deserves a job managing a foreign income fund.

Yields on world income funds range, by and large, from 6 percent to 8 percent.

Many moved their money into short-term global income funds.

Included in these are 36 state and federal tax free income funds, an area of investment pioneered by Franklin.

More conservative growth and income funds, he said, have picked up some money from people adding to their individual retirement accounts.

Also posting an increase was the Growth and Income fund, up 6.2 percent.

Value Line Inc. classified it as an income fund at the time.

The income fund category is a grab bag for funds that do not really fit elsewhere.

Some oil and gas income funds, for example, suggest that first-year distributions may be 15 percent, or higher.

Of the two, income funds lead this list because their top performers have large concentrations in junk bonds.

However, many advisers suggest that investors might consider overseas equity income funds.

Today, the Equity Income fund is the company's largest, with $23 billion in assets.

By contrast, the income funds offer investors direct ownership of proven reserves.

Can income funds truly buy reserves today at prices that will yield attractive returns?

But managing the income fund is not easy.

Not to worry, say the sponsors of the new wave of oil and gas income funds.

Some strategic income funds, though, are not new.

The short world income funds were built on complicated currency hedging techniques that did not work.

That's not to say that the short-term global income funds haven't produced returns worth boasting about.

But they put 35 percent more money into growth and income funds, the most conservative of the diversified stock funds.

Income funds invest in stocks that pay regular dividends.