Posted by: Labdhi Mehta on Sep 18, 2017, 02.27 PM IST
1. Products with income-orientation are designed to provide regular income to investors and are suitable for investors with lower risk and return specifications.
2. Deposit products of banks, post offices and companies, government savings schemes, bonds issued by the government, companies including infra companies and debt funds of mutual funds are income-oriented products.
3.These investments typically do not provide capital appreciation since the focus is on generating and distributing income.
4.Liquidity in such investments may be affected by the penalty associated with withdrawing funds from most of the deposit products.
5.Income earned in the form of interest is subject to tax on accrual at the marginal rate of tax applicable to the investor.