An income asset class includes a number of different instruments that offer a regular income by investing in a combination of short-term, medium-term and long-term income generating securities.
The income asset class is classified as low risk investments that are designed to provide stability and a steady stream of income to investors. This asset class has relatively high levels of liquidity that make them sound investments over the short to medium term. The income asset class provides more stable returns relative to the equity and property asset classes.
Where an income asset class has a Shari’ah mandate, it will be limited to holding securities that satisfy the investment guidelines of the Shari’ah board.