Fixed-income fund

Fixed-income funds give you the opportunity to get a better return on your savings than you get in a savings account.

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Possibility of a higher return than in a savings account
Follow the development in the savings app Spare
Choose between liquidity funds and bond funds

What is a fixed-income fund?

Fixed-income funds are funds that invest the money in fixed-income securities such as bonds and commercial papers. When a mutual fund invests in interest rates, it means that it actually invests in loan securities. Examples of fixed-income funds are liquidity funds and bond funds.

The difference between bond and liquidity funds is the term of the fixed-income securities the funds buy. If the mutual fund only owns bonds, the term can be several years. In a liquidity fund, the term is shorter, usually between three months and one year. As the term is longer in bond funds, you must expect slightly higher fluctuations in value than in a liquidity fund.

By saving in liquidity funds and bond funds, you can expect to see slightly higher returns over time than in a bank account. Bond funds normally give slightly higher returns than liquidity funds.

See our fixed-income funds

Historical returns are no guarantee of future returns. Future returns will depend, among other things, on market developments, the skill of the Portfolio Manager, the mutual fund’s risk, and the management costs. Returns may be negative as a result of mark-to-market losses.

Differences between different types of equity funds (in Norwegian only)

See more videos about saving in mutual funds and shares here

Learn about interest management in DNB (in Norwegian only)

Daniel Berg explains what interest management is and when it’s suitable for your savings.

Liquidity funds

Build up a savings buffer or save for unforeseen events with quick access to the money. Liquidity funds are the mutual fund group that carry the lowest risk. This also means the lowest expected return. Over time, you can expect to receive a slightly higher return than a high-yield bank account.

More information about liquidity funds

Bond funds

Save money for larger purchases where you do not need immediate access to the money. Bond funds are well suited to savings in the medium term. Bond funds usually provide a slightly higher return than liquidity funds, but more fluctuations in value can be expected.

More information about bond funds

DNB Active Rate

This product invests in fixed-income securities. You want a high degree of security for your savings. The mutual fund is a good alternative to savings accounts.

Buy DNB Aktiv Rente

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The savings app Spare

Spare is the app that helps you keep track of your savings.

Read more and download the Spare app

Fixed-income funds FAQs

What is a fixed-income fund?

A fixed-income fund is a fund that invests the money in fixed-income securities such as bonds and commercial papers.

Governments, municipalities, banks and larger companies sometimes need to borrow money. And they don’t necessarily go to the bank and borrow it. Instead, they issue bonds or commercial papers, which are just other words for loan securities. A bonds is an obligation to pay an interest rate to the owner of the bond and repay the full loan amount on a fixed date. You, or the mutual fund, can "lend" a municipality money, and in return you get a paper, a bond (or a promissory note if you like), which obliges them to pay you interest.

When should I save in a fixed-income fund?

You may consider saving in fixed-income funds if you want a higher return than a normal bank account and have a savings horizon of 2 years or more. Fixed-income funds are ideal if you want low risk for your savings, while the probability of a negative return over time is very low. You must be willing to accept moderate fluctuations in your savings. Saving in a fixed-income fund is also a good solution for people who want to combine investments in equity funds with fixed-income funds so you can adjust the risk in your overall savings portfolio.

You should not save in a fixed-income fund if you cannot tolerate the return being negative during certain periods, or if you want a very high return.

How are annual prices and issuing of new shares in fixed-income funds adjusted?

The prices of fixed-income funds change at the beginning of a new year. In practice, this means that as a unit holder, you get more fund shares, while the NOK value stays the same.

Interest income and profits realised in Norwegian fixed-income funds are paid in form of new shares.

Any exchange rate loss – when a fixed-income security is sold for less than what the Portfolio Manager pays out, will reduce the disbursement. This is done by converting taxable income from the mutual fund - interest income, realised gains less losses - into so-called “return shares”. At the same time, the price of mutual fund shares is reduced.

Taxable return is not the fund’s return.

What you get from new fund shares is not the same as the fund’s return. The returns in the fund thus include unrealised profits – when fixed-income securities are priced higher than what the Portfolio Manager paid, and any losses.

When the value of the fund is set, both unrealised and realised gains and losses are taken into account. However, the tax is only calculated by what has been realised. Realised only means that the Portfolio Manager has sold fixed-income securities.

Note that unrealised gains in the fund are only taxed when you sell fund shares. Similarly, you’ll receive a tax deduction for losses on the day you sell the shares.

Sustainability in mutual funds and in our advice

SFDR is the regulation in the EU action plan for sustainable finance. SFDR ensures that financial institutions publish their financial products’ investment strategy, investment objectives and actual investments.

Read more about the classification of mutual funds and sustainability

Our mutual fund products

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Fixed-income fund

What is a fixed-income fund?

Differences between different types of equity funds (in Norwegian only)

Learn about interest management in DNB (in Norwegian only)

Liquidity funds

Bond funds

DNB Active Rate

The savings app Spare

Fixed-income funds FAQs

Read more about interest rates and fixed-income funds on DNB News

Sustainability in mutual funds and in our advice

Our mutual fund products

Equity fund

Index fund

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Fixed-income fund

Mutual fund with sustainability profile

Gift fund

DNB Lev Mer

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