Fixed Income/ Bond Fund
These funds invest mainly in Malaysian Government Securities, corporate bonds, and debt instruments, such as mortgage-backed securities. This type of fund focuses on providing regular income to the investors, with less emphasis on providing capital growth. Therefore, the prices of the funds are usually more stable compared to equity funds. However, during times of volatile interest rates, the fluctuation may be significant as fixed income securities are sensitive to movement in interest rates.
Fixed Income/ Bond Fund
Up to 90% of its NAV is from corporate or government bonds and debentures. Targeted at conservative-risk investors as it offers low volatility
To provide a regular and steady income
This scheme generally invests in fixed income securities such as bonds, corporate debentures and Government securities
Income Funds are ideal for capital stability and those seeking a regular income
Defaults by the bond issuer.
Interest rate risk is the risk that the market value of the bonds owned by a fund will fluctuate as interest rates go up and down. For example, when interest rates go up, the market value of bonds owned by a fund generally will go down. Nearly all bond funds are subject to this type of risk, but funds holding bonds with longer maturities are more subject to this risk than funds holding bonds with shorter maturities
Interest rate risk is the risk that the market value of the bonds owned by a fund will fluctuate as interest rates go up and down. For example, when interest rates go up, the market value of bonds owned by a fund generally will go down. Nearly all bond funds are subject to this type of risk, but funds holding bonds with longer maturities are more subject to this risk than funds holding bonds with shorter maturities
In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value.
By, Alan Greenspan