Income Funds

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Abstract:

Income Funds in India provide to the investors regular income and also stability of capital. Income Funds in India usually invest their principal in securities of fixed income such as government securities, bonds, and corporate debentures. There are many mutual funds houses that have launched Income Funds in India.

Mutual fund in India:

Mutual fund in India is a kind of method for investment in which people collect their money and then make investments in different securities such as cash investments, stock, or bonds.

Each mutual fund in India has a fund advisor and this is the reason that it is also known as managed funds. The various kinds of mutual fund in India are Income Funds, Balanced Funds, Tax Saving Funds, Mid- Cap Funds, and Growth Funds.

Meaning of Income Funds in India:

Income Funds in India usually invest their principal in companies that give high payouts of dividends and also in securities of fixed income such as corporate debentures, government securities, and bonds. The advantage of Income Funds in India is that it provides regular income to the investor either on a monthly or quarterly basis. Further the advantage of Income Funds in India is that it also provides stability of capital to the investor. Income Funds share prices are not fixed for they have a tendency to grow with the fall in interest rates and fall with the rise of the interest rates. The bonds that are there in Income Funds are usually of the investment grade. The other bonds are of such credit quality that they assure the protection of the capital.

Mutual fund companies that have launched Income Funds in India are:

  • Prudential ICICI Mutual Fund
  • HDFC Mutual Fund
  • Reliance Mutual Fund
  • Birla Sun Life Mutual Fund
  • Franklin Templeton India Mutual Fund
  • Tata Mutual Fund

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



Last Updated 06/30/2011

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