Income fund, also known as debt fund, invests in a basket of fixed income securities such as bonds, debentures & money market instruments like certificate of deposit, commercial paper. These schemes are devoid of equity exposure and ideally suited for risk averse investors. However, such instruments carry broadly three types of risks – credit or default risk, interest rate risk & reinvestment risk.
Read more at: http://www.moneycontrol.com/news/fixed-income/know-your-needs-before-you-pickdebt-mutual-fund_3930681.html?utm_source=ref_article
Read more at: http://www.moneycontrol.com/news/fixed-income/know-your-needs-before-you-pickdebt-mutual-fund_3930681.html?utm_source=ref_article
