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What is an Income Fund?
Table of Content
How Does an Income Fund Work?
Typically, the fund manager invests in fixed income securities with higher credit ratings and established financial track records. Such companies have lower default risk in repayment of capital and interest.
The objective of the income fund is to maximize income. This reflects in two ways:
- Capital appreciation which is when the NAV or net asset value rises over a period of time
Dividend payout at periodic intervals depending on surplus funds
Who Is It Suitable For?
For an investor, income funds are ideal for planning for child's education, setting aside money towards down payment on a house, retirement planning, among other long-term goals.
Even investors with higher risk appetites who prefer to invest through equity funds / equities, can consider investing a portion of money in income funds for diversification.
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Related Insurance Definitions:
Products Offered by HDFC Life:
- HDFC Life Click2Invest ULIP - Online Unit Linked Insurance Plan
- HDFC Life Click2Retire - Online Retirement Plan
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99.72% Claim Settlement Ratio
For FY 2025-2026
~4.6 Cr. Number Of Lives Insured
For FY 2025-2026
Disclaimer: By submitting your contact details, you agree to HDFC Life's Privacy Policy and authorize ...Read More
99.72% Claim Settlement Ratio
For FY 2025-2026
~4.6 Cr. Number Of Lives Insured
For FY 2025-2026
Francis Rodrigues
Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.
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HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER
We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.
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The Unit Linked Insurance products do not offer any liquidity during the first five years of the contract. The policyholders will not be able to surrender or withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of fifth year.
Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. HDFC Life Insurance Company Limited is only the name of the Insurance Company, the name of the company, name of the contract does not in any way indicate the quality of the contract, its future prospects or returns. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document of the insurer. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.
