Invest in Best Income Funds in India 2024
Discover the best Income Funds to invest in India for 2024. Learn who should invest, key benefits, risks, and find the top performing Income Funds in the market.
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What is Income Mutual Funds?
Income mutual funds are a type of investment fund that primarily invests in fixed-income securities, like government bonds, corporate bonds, and money market instruments. The portfolio is managed based on the interest rate movements
Who Should Invest in Income Mutual Funds?
- Investors who prefer income over capital preservation
- Conservative investors with low risk appetite
- Investors who seek low volatility and stability
- Investors with a shorter investment horizon typically 1-3 years
Best performing Income Mutual funds
| Fund name | Category | Risk | 1 year returns | 3 year returns | Rating | Fund Size in crores |
| Aditya Birla Sun Life Regular Savings Fund | Income Funds | Moderately High | 10.68% | 7.70% | 3 | 1393 |
| DSP Regular Savings Fund | Income Funds | Moderately High | 13.63% | 9.18% | 4 | 172 |
| HDFC Hybrid Debt fund | Income Funds | Moderately High | 15.99% | 10.95% | 4 | 3231 |
| UTI Conservative Hybrid Fund | Income Funds | Moderately High | 15.32% | 10.46% | 3 | 1617 |
Factors to Consider While Investing in Income Mutual Funds
- Fund Manager’s Expertise: Look for funds whose fund manager that has a good track record of managing this type of funds
- Credit quality: Assess the credit quality of underlying securities in the fund’s portfolio
- Interest rate movements: It is heavily reliant on interest rate movements as it has a impact of fund’s performance
- Expense Ratio: The expense ratio represents the fund’s annual operating costs. Pick the one with reasonable rate to ensure good returns
Major Benefits of Income Mutual Funds
- Potential for High Returns: They provide regular income through interest payments and dividends
- Lower volatility: They have lower volatility compared to equity-based funds
- Diversification: Investing in income funds can help you diversify your portfolio and reduce the overall investment risk
- Professional Management: Fund managers handle the investment decisions using their expertise
Risks Involved in Income Mutual Funds
- Interest risk: Change in interest rates can impact the value of underlying securities which affect your returns
- Credit risk: The risk of default by issuers of fixed-income securities
- Reinvestment risk: The risk that cash flow from the fund has to be reinvested at a lower interest rate due to market movements
Frequently Asked Questions about Income Mutual Funds (FAQs):
1. Are income mutual funds suitable for retirement planning?
Income Mutual funds provide stable returns, so, it is ideal for conservative investors with a low risk appetite
2. How do income mutual funds differ from equity mutual funds?
Income funds invest in fixed income securities, while equity mutual funds invest in stocks seeking capital appreciation
3. What are the risks with income mutual funds?
Interest rate risks, credit defaults are some of the reasons that may negatively impact your returns
4. Are there any fees associated with investing in income mutual funds?
Yes, like all funds they too have expense ratio which cover administrative costs
- Tata Mutual Fund
- Canara Robeco Mutual Fund
- PPFAS Mutual Fund
- Nippon India Mutual Fund
- HSBC Mutual Fund
- SBI Mutual Fund
- Edelweiss Mutual Fund
- PGIM India Mutual Fund
- LIC Mutual Fund
- Bandhan Mutual Fund
- Quantum Mutual Fund
- HDFC Mutual Fund
- Axis Mutual Fund
- ITI Mutual Fund
- Kotak Mutual Fund
- ICICI Prudential MF
- Aditya Birla Sunlife MF
- DSP Mutual Funds
- Mirae Asset Mutual Fund
- Motilal Oswal Mutual Fund
- Sundaram Mutual Fund
- Invesco Mutual Fund
- Taurus Mutual Fund
- Whiteoak Capital MF
- Quant Mutual Fund
- JM Financial MF
- UTI Mutual Fund
- Baroda BNP Paribas MF
- Franklin Templeton MF
- Union Mutual Fund
