What are Income / Debt Oriented Scheme?
The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures, Government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. However, opportunities of capital appreciation are also limited in such funds. The NAVs of such funds are affected because of change in interest rates in the country. If the interest rates fall, NAVs of such funds are likely to increase in the short run and vice versa. However, long term investors may not bother about these fluctuations.
Related Questions
- How should an investor choose his/her investment portfolio from among so many types of products equity oriented, debt oriented, balanced fund, ULIPs, pension plan and child plans?
- What are the overall projections on income that the council believes it will receive from the amended scheme?
- What are Income / Debt Oriented Scheme?
