Income Mutual Fund

A income mutual fund is a type of mutual fund or ETF that generates regular returns by investing in government securities, corporate bonds, debentures, certificates of deposits and money market funds.  

Best 5 Income Mutual Fund

Reliance Income Fund (G) - Direct

Mutual Fund 5 Star

Return 3Y: 8.90%

IDFC Bond Fund (G) - Income Plan

Return 3Y: 8.97%

LIC MF Bond Fund (G) - Direct Plan

Return 3Y: 7.49%

Franklin India Income Opportunities Fund

Return 3Y: 9.56%

Axis Strategic Bond Fund (G)

Return 3Y: 8.40%

  • Past Performance Is No Guarantee of Future Results. Rating & Returns are based on Crisil Ranking.

How does Income Fund Work? 

Income Fund basically generates returns based on declining and rising interest rate scenario. The fund manager aims to deliver high returns by shifting the portion of its debt and money market instrument with relatively low level of interest rate risk.  They provide greater flexibility of redemption and withdrawal compare to fixed deposits and bank account.  

Who Should Invest in Income Fund? 

Income Fund is best suited for those investors, who wish to have regular and stable Income. This type of fund carries less risk. Higher the degree of the equity, more will be the degree of risk and return. So, any investor who is willing to take the risk must invest in Income Fund.

How to invest in Income Fund?

To invest in Income Fund, an investor needs to follow these simple procedures: 

  • Sign in at Gulaq account. 
  • Enter all your credentials regarding the amount of investment and period of investment. 
  • Get your e-kyc done in less than 5 minutes. 
  • Further invest in any Income fund from the list of funds.

 What is the Benefit of Investing in Income Fund? 

The benefit of investing in Income Fund:   

  • Better returns than a Saving Account: Income fund generates better returns than fixed deposits or savings account. But they do carry risk due to the volatility in the interest rate. 
  • High Liquidity:  Income funds don’t have any lock-in period and allow investors to withdraw their investment. This is not the case for most of investment, especially fixed deposits. 
  • Tax benefits:  Income funds are tax efficient than fixed deposits, especially for those who fall in income tax bracket of 30%.  

What are The Things To Be Considered Before Making Any Investment Decision. 

Before making any investment decision, here are certain things to be considered: 

  • Last Year Returns: 

Income funds generate better returns than fixed deposit, if you stay invested for more than one year.  But it’s better to check the past few years returns before making any investment decision. 

  •  Investment duration:  

Like any other debt mutual fund, income fund offers short, medium- or long-term returns. As per your preference, you can choose any option. 

  • Tax Efficiency: 

Income funds are more tax efficient than fixed deposit. The income fund, which are held for more than 3 years comes under the bracket of Long-Term Capital Gain. The fund is taxable at 10% without indexation and 20% with indexation benefit. 

Frequently Asked Questions

What is an Income Mutual Fund?

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What is an Income Mutual Fund?

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Attention Investor
Investments in Mutual fund & Securities Market are subject to market risks. Please read the scheme information and other related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund or designing a portfolio that suits your needs. Terms and conditions of the website are applicable.

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Estee Financial Services Pvt. Ltd. (hereinafter referred to as “EFSPL”) Formerly Estee Commodities Pvt. Ltd ( hereinafter referred to as “ECPL”), 7th Floor, Block 1, Vatika Business Park, Sohna Road, Sector 49, Gurugram, Haryana 122001.
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Registration Detail 
Estee Advisors Pvt Limited (hereinafter referred to as “EAPL”) is registered with the Securities and Exchange Board of India as Stock Broker with registration number INZ000170130 and registered with BSE Star with code 24408 for mutual fund transaction facility. EFSPL and EAPL are group companies and EAPL is authorized to provide its services to the Users on the Gulaq website/app under a Sub-distribution agreement with EFSPL.

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In case of any grievances/ complaints please write to us [email protected]

Mutual fund investments are subject to market risks, read all scheme documents carefully.

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