Business Standard

Readers' Corner: Mutual Fund

Accrual funds are nothing but income fund

bonds, investment, mutual funds, growth, money, dividends

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Anuradha Rao
What is the difference between income and dynamic bond funds? If I am saving for the long-term (10-15 years), which one should I choose?

The primary difference between income and dynamic bond funds is the way these two funds are managed. While income funds predominantly follow an accrual strategy and seek to generate returns by investing in short-term and medium-term bonds, dynamic bond funds seek to generate returns by active management of duration based on interest rate view of the fund manager. You can look at investing in dynamic bond funds for a long-term investment horizon and income fund for

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First Published: May 31 2018 | 1:21 AM IST

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