Aditya Birla Sun Life Mutual Fund

Solution Funds - Invest in Solution Based Mutual Funds - Aditya Birla Sun Life Mutual Funds

Debt Mutual Funds

Our Regular Income Solutions seeks to invest your money so as to provide regular income and tax efficient returns.

While debt funds invest in debt securities of different maturities, but each security has a fixed maturity date and interest rate. This makes debt mutual fund a lower risk investment compared to other mutual funds like equity funds. Debt funds manage this risk generally by investing in debt securities rated by reputed credit rating agencies. Income for debt funds arise due to interest income and capital appreciation of debt securities.

Who can benefit from Regular Income Solutions?

This is an ideal solutions for investors who are interested in alternative modes of regular income, either in present of after retirement stage, and have low propensity for risk. (Regular income in not assured and is subject to availability of distributable surplus.)

They aim to preserve your money and provide regular income
These schemes generally invest in instruments like bonds of reputed companies and securities (bonds) issued by Government of India which are considered relatively safe in order to generate regular income for you.
They aim to fight inflation
A small part is invested in equity i.e. stocks of Indian companies to help you stay ahead of inflation.
Tax-efficient returns
You may opt for a monthly dividend option where, in addition to the growth of your invested amount, a portion of the same comes to you as monthly income which is given in the form of dividends. These dividends are completely tax-free in your hands!A dividend distribution tax of 28.325% as applicable and is deducted by the fund house.The DDT rate of 28.325% is effective June 01, 2013 and further, upto May 31, 2013 DDT rate is applicable shall be 14.1625% as amended by Finance Bill/Act 2013.Investors are required to note that fiscal laws may change from time to time and there can be no guarantee that the current tax position may continue in the future.Investors are advised to consult their tax advisors in view of individual nature of tax benefits.Wherever mentioned, Regular Income / Second Income / Monthly Dividend is not assured and is subject to availability of distributable surplus. The Financial Solutions (Regular Income Solution) stated above is ONLY for highlighting the many advantages perceived from investments in Mutual Funds but does not in any manner, indicate or imply, either the quality or any particular Scheme or guarantee any specific performance/ returns.
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 are Income Funds?

    Income funds are a class of debt mutual funds that invest in a combination of government securities, certificates of deposits, corporate bonds and money market instruments. They seek to generate returns, both in declining and rising interest rate scenarios by managing their portfolio actively.

  • What are the types of Income Funds?

    • Fixed Income Funds • Equity Income Funds • Diversified Income Funds etc.

  • Why invest in Income Funds?

    One of the greatest advantages of income funds is instant diversification. Income funds usually offer an added hedge against market risk and make it easy for investors to invest in a diversified pool of dividend or interest paying securities.

  • What are Fixed Income Funds?

    A limited risk type of fund, investing primarily only in fixed income related investments like CDs and bonds. Fixed income funds normally invest in bonds and other debt securities and have some potential for growth while providing a regular level of income. There are a wide variety of fixed income funds available that can focus on specific geographic regions, credit quality and term to maturity or fixed income securities.

  • What are Equity Income Funds?

    Equity Income Funds seek high dividend income and future growth in income by investing a major portion of its capital in equity securities.

  • What are Diversified Income Funds?

    Diversified income funds seek to generate income by investing across various asset classes, sectors, and geographies. Like most income funds, they prioritize income generation over capital appreciation. Diversification plays a critical role. Certain asset classes will do well under certain market conditions, while others may do poorly. As market conditions inevitably change, the asset classes switch roles, with returns from some investments offsetting losses in others. The aim is to provide consistent investment returns with lower volatility.

Funds Under Regular Income

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Funds are bucketed on various parameters.
*Annualized returns are displayed for 1 year and above.
Annual return for 2017 will be added shortly.