For the conservative investor.
This type of funds usually requires you to invest for a period of 3 or 5 years. At the end of the period, your capital is guaranteed.
Capital guaranteed fund is a hybrid fund consisting of bonds which will “grow” to 100% of your capital upon maturity and a small portion in equities to give the fund the “profit”. Unless the bonds issuer defaults, the capital is sure to be preserved.
Income / bond funds
For the conservative investor.
The objective of income funds is to provide regular and steady income to investors.
Such schemes generally invest in fixed income securities such as bonds, corporate debentures and Government securities. Income Funds are ideal for capital stability and regular income.Some risk to such funds are when the bond issuer defaults.
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