The objective of income funds is to give regular and stable returns. These types of scheme usually invest in fixed income securities like corporate debentures, bonds, govt. securities and money market instruments. The funds are not influenced by the fluctuations in the market. However, the opportunities of appreciation of returns are limited in these types of schemes. The NAVs of these funds are impacted because of interest rates change in the country. When interest rates decreases, NAV of these funds are expected to maximize in short term. Moreover, long term investors might not concern about these fluctuations.