Aditya Birla Sun Life AMC Limited

Income Solutions Fund - Aditya Birla Sun Life Mutual Fund

Income Solution

Debt Mutual Funds

Income Solution could be an ideal investment opportunity for investors seeking regular income with low risk. If you need supplemental income to elevate your lifestyle or meet the financial requirements of your family post retirement, our Income solution will seek to provide consistent income by investing your capital in investments with moderate level of risk.

Since the primary intent of our Income Solution is to create a consistent income source of you, the scheme under this solution seek to invest primarily in fixed income instruments with a limited exposure to equity markets


Why our Income Solution makes sense for you?

  • • Stability of debt with growth potential of equity
  • • Inflation adjusted returns
  • • Provide Diversification
  • • Protection against Market volatility
  • • Tax-efficient

Who should invest in Income Solution?

  • • Retired individuals seeking consistent income
  • • Professionals looking for alternate income sources
  • • Individuals with a low to moderate risk profile
  • • Investors with an investment horizon of at least 4-5 years
Fund Categories

    Short term Fund: Schemes whose average maturity over the last 6 months is between one year and 4-5 years.

    Ultra short term: Schemes whose average maturity is less than one year, but which are not liquid schemes.

    Liquid: Schemes which do not invest in securities with a residual maturity of more than 91 days.

    Gilt(medium and long term): Schemes which invest in government securities and can vary their average maturity.

    Gilt(short term): Schemes which invest in government securities whose average maturity over the last six months is between one year and 4.5 years.

    Arbitrage: Schemes which seek returns from arbitrage opportunities between equity and derivatives and invest in debt when no arbitrage is possible.

    Income: Schemes which can vary their average maturity widely as per the declared objectives; these invest in government securities, money markets, bonds etc.

  • What kind of mutual funds are included in income solutions?

    Income solutions comprise of debt-oriented hybrid funds. These are funds which invest in a mix of equity and debt instruments, with a larger proportion towards debt funds. This is towards the objective of the fund to earn regular income for its investors along with a proportion of capital growth.

  • Are conservative hybrid funds suitable for you as an investor?

    These funds are ideal for you if you are looking for alternative investment means to earn regular periodic income along with a potential for capital appreciation, at a moderate risk level.

  • Can these funds help you beat inflation?

    Conservative hybrid funds have a dual objective of earning regular income as well earing capital growth. It is this wealth creation potential that can help you earn extra as an investor to potentially beat inflation over time.

  • What kind of time period should I look to stay invested in these funds for?

    Conservative Hybrid funds are suitable for investing over the medium to long term – in excess of 3 years. These funds can be invested in over the long term if you are looking for regular returns but have relatively low risk appetite.

  • What risk level do these funds carry?

    These funds have a lower risk level than equity funds, yet a higher risk level than pure debt funds due to the proportion invested in equity funds.

  • Do these funds guarantee periodic returns?

    Even though these funds invest a larger proportion in debt funds and carry a lower risk level than equity-oriented funds, however they cannot guarantee periodic returns. The ability of the fund to distribute periodic returns is dependant on its available distributable surplus. This is subject to interest rate and credit risk.

  • How are Conservative hybrid funds taxed on redemption?

    The taxation of these funds on redemption are akin to the taxation of debt funds. Funds held for 36 months or more are taxed as long-term capital gains – at 20% tax rate after indexation. Funds held for period shorter than this are taxed as short-term capital gains, added to your income and taxed at slab rates

Funds Under Regular Income

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*Annualized returns are displayed for 1 year and above.
Annual return for 2017 will be added shortly.