The trustee of IDLC Income Fund has announced an Interim cash dividend of 3.9 per cent recently for the period ended on December 31, 2022, says a press release.
IDLC Income Fund is Bangladesh's first ever "Debt Mutual Fund" launched in June 2021.
This is the 3rd cash dividend delivered by IDLC Income Fund in 18 months since its inception in June 2021. Overall, average annual return of the fund stands as 7.84 per cent since inception.
The IDLC Income Fund being a Debt Mutual Fund is completely different in nature from an Equity Mutual Fund.
While an Equity Mutual Fund invests primarily in equities or stocks, a Debt Mutual Fund predominantly invests in government/ government-backed securities (40 per cent - 60 per cent) prioritising investment security at the first place.
Moreover, to ensure the investment safety and generate a regular, stable return, the IDLC Income Fund invests in corporate bonds with strong credit rating and FDRs.
Also, the investors have earned a maximum tax rebate (15 per cent) on the amount invested in IDLC Income Fund as per Income Tax Ordinance, 1984.