Fixed- Income Funds

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Abstract:



Fixed- Income Funds in India are a kind of mutual fund which makes investment in debt securities that have been issued either by the companies, banks, or government. Fixed- Income Funds in India are also known as debt funds and income funds.

An overview of Mutual fund in India:



Mutual fund in India is a kind of instrument for investment of money. In Mutual fund in India, a large number of investors function through a fund manager who buys bonds or stocks.

By collecting money in Mutual fund in India, the investors are able to buy bonds or stocks at a much low costs than if they did on an individual basis. The advantages of Mutual fund in India are that they are easy to make investments in and are also very cost efficient.

A glance at Fixed- Income Funds in India:



Fixed - Income Funds in India are also known as debt funds or income funds. Fixed- Income Funds in India make investments in debt securities that have been issued either by the banks, government or companies. The debt securities in which Fixed- Income Funds in India makes investments are also known as commercial papers of deposit or treasury bills if the duration is less than one year and in case the duration is more than one year then the debt securities are known as bonds or debentures. The issuer of the debt securities has the obligation to pay the interest and principal on the time schedule that has been fixed.

Fixed - Income Funds in India have a face value and it is on this that the calculation of interest takes place. Investors who are investing in Fixed- Income Funds in India are mainly concerned with the time period, maturity value, rate of interest payment, rate of interest, and face value. Fixed- Income Funds in India are usually held till maturity.

Major fund houses that have launched Fixed- Income Funds in India are:



  • Sundaram BNP Paribas Mutual Fund
  • Franklin Templeton India Mutual Fund
  • Fidelity Fund Management
  • Reliance Mutual Fund

To knoe more about Classification of Mutual Funds click on the following links:





Last Updated 06/30/2011

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