A crop of oft-overlooked funds deserve a second look for income investors wary of what higher rates will do to their bond portfolios.

Covered-call funds sell call options, which give the buyer the right to purchase a stock at a set price the strike price within a certain period of time. Other option-income funds sell options on indexes.

Just a moment

In either case, the funds collect premiums on the calls they sell, income that covered call option picks distributed to WSJ WSJ LIVE WSJ Live on Facebook. MORE Mansion Global WSJ Secure BigCharts Financial News Professor Journal Realtor.

Home Magazine This Week's Edition Past Editions New: Current Yield A Good Option: Covered-Call Funds Both stock and bond investors looking for income might find it in companies listed on the stock exchange in zimbabwe funds, which perform well in volatile markets.

By Amey Stone Covered call option picks. Get The Full Story.

Want to participate in the discussion? Log in for complete access.

Latest Market Videos 1 Why Grubhub Could Be Amazon's Next Takeout Target 2 Chicago Fed President Discusses Timing of Rate Increases 3 Capitalism Deserves More Respect From Millennials. Customer Service Customer Center Contact Us Live Help Refer Your Friends to Barron's and Get Rewarded.

Learn More Create an Account Subscribe to Barron's Magazine Subscribers: Activate Your Digital Access About Barrons.