After six months of its launch, IDLC Income Fund has recently announced a 3% interim dividend for the period that ended on 31 December, 2021.
IDLC Asset Management Ltd (IDLC AML) launched the IDLC Income Fund - the country's first ever debt mutual fund - in June 2021, read a press statement.
The first of its kind IDLC Income Fund is an open-ended, debt mutual fund that is mandated to invest in fixed income securities like government securities/government-backed securities, bonds, debentures, money market instruments, etc.
This new category of investment vehicle offers maximum tax benefits like the National Savings Certificate (popularly known as Sanchayapatra), and maintains the optimum balance of yield, safety, and liquidity.
Managing Director of IDLC AML Rajib Kumar Dey said "IDLC Income Fund ushers a new addition to the limited investment universe, where Sanchayapatra has been the only option till date, of investors who look for investment avenues which provide maximum tax rebates for efficient tax management, and regular and stable income without undertaking high risk thus enabling them to grow their wealth steadily."
Since investment in mutual funds is eligible under Income Tax Ordinance 1984, it can unquestionably save 10% -15% tax by delivering maximum tax rebate. This way, it solves critical problems, especially for people who have already exhausted their Sanchayapatra limits, and investment in the capital market is apparently the only way for achieving maximum tax rebates that come with the risk of capital erosion.
IDLC Income Fund will be an eye-opener for the investors because the composition of the portfolio – if maintained with the right investment philosophy – can yield regular and stable income in the form of dividends.