Income shares are a feature of open-ended investment funds, such as the LF Woodford Equity Income Fund. Investors can choose between two main share class types: accumulation and income. In the income share class, any income that is received by the fund from its underlying portfolio holdings, is paid out to the investor in the form of a regular income distribution. Sometimes these payments are made annually, half-annually or monthly, but in the case of the LF Woodford Equity Income Fund, payments are made quarterly.
Income shares tend to be favoured by investors seeking a regular income source.