What is an income fund?

What is an income fund?
As Tyron has explained in our video, an income fund is a low risk investment made up of various fixed interest instruments in an attempt to ensure the investor has the maximum return with the least amount of risk and volatility.

in the graph we have provided there is far greater performance of the Wealth creators income fund when compared the to performance of a standard money market. As explained in the video clip, the average returns are in excess of 9% p.a with little to – no volatility!

Income funds are one of the lowest costing investments in the market. The income funds we make use of has an average annual management of less than 0.6%.

Is than any risk at all?
Yes, there are risks as the income funds are fully dependant on the asset managers decisions on which fixed interest instruments to make use. Each of the instruments may be lose some value as a result of credit defaults, bond devaluation and a change in interest rates. All these scenarios can have a negative impact on the income fund but again we would like to emphasize on how low the risks are, clearly displayed by the graph achieving consistent returns year in and year out.

Should you invest in an income fund?
There are multiple variables to consider when deciding on what your portfolio should look like – such as what is the purpose of the investment? What is the time horizon? What are the tax implications? All of these can be explained to you by one of our expert financial planners and a customized solution can be developed just for you!

What is an equity fund?