Fixed-income funds

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
Choose between liquidity funds and bond funds
On your mobile phone you buy fixed-income funds and follow the developments in The Spare app

What is a fixed-income fund?

A fixed-income fund is a mutual fund that invests the money in fixed-income securities such as bonds and commercial papers. Investing in fixed-income securities actually means investing in loan securities. Examples of fixed-income funds are liquidity funds and bond funds.

The difference between bond funds and liquidity funds is the term of the fixed-income security that the funds buy. If the fund only owns bonds, the term can be several years. In a liquidity fund, the term is shorter, usually between three months and a year. Since the term is longer in the bond fund, you must expect slightly greater fluctuations 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.

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How much does it cost to save in fixed-income funds?

Get an overview of what it costs to save in different funds.

Pricing model for mutual funds

Learn about interest management in DNB (in Norwegian only)

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

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Liquidity funds

Build up a savings buffer and protect yourself against unforeseen events with quick access to the money. Liquidity funds carry the lowest risk. This also means they give the lowest expected returns. Over time you can expect to get a slightly higher return than in a high-interest bank account.

More information about liquidity funds

Bond funds

Save money for major purchases where you don’t need immediate access to the money. Bond funds are ideal for saving 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

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DNB Active Rate

This product invests in fixed-income securities. Suitable if you want a high degree of security for your savings. The fund is a good alternative to a savings account.

Buy a fund on a mobile phone in the Spare app

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Find out which type of investment is right for you. Our advisers will do a review of your overall finances and what you want to get from your savings.

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The Spare app

The Spare app brings all your savings together in one place and gives you a full overview of your investments.

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.

The government, local councils, banks and large companies sometimes need to borrow money. And they do not necessarily go to the bank to borrow it. Instead, they issue bonds or commercial papers, which is just another term for loan securities. Bond is another word for obligation, in this context, an obligation to pay a rate of interest to the owner of the bond and repay the whole loan amount on a fixed date. You, or the mutual fund, can “lend” a local council money, and in return you get a certificate, a bond (or promissory note if you will), which obliges them to pay you interest.

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

Prices of fixed-income funds change at the start 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 mark-to-market losses – when a fixed-income security is sold for less than the Portfolio Manager paid for it – will reduce disbursements. This takes place by taxable income from the fund (interest income, realised profits minus losses) being converted to so-called “return shares”. At the same time, the price of the fund shares decreases.

Taxable return is not the fund’s return.

What you get from new fund shares is not the same as the fund’s returns. 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 fund’s value is set, both unrealised and realised profits and losses are taken into account. However, tax is only calculated on realised amounts. Realised just means that the Portfolio Manager has sold fixed-income securities.

Note that unrealised profits in the fund are not taxed until you sell the fund shares. Equally, you get tax deductions on losses the day you sell the shares.

When should I save in a fixed-income fund?

You can consider saving in a fixed-income fund if you want a higher return than a normal bank savings rate and have a saving timeframe of two years or more. Fixed-income funds are suitable if you want low risk for your savings, while the likelihood of a negative return over time is very small. You must be willing to accept moderate fluctuations in your savings. Saving in a fixed-income fund is also a good solution for anyone who wants 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.

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.

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

Fixed-income funds

What is a fixed-income fund?

How much does it cost to save in fixed-income funds?

Learn about interest management in DNB (in Norwegian only)

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Liquidity funds

Bond funds

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DNB Active Rate

Are you looking for advisory services?

The Spare app

Fixed-income funds FAQs

Sustainability in mutual funds and in our advice

Our mutual fund products

Mutual fund list

Digital adviser

Equity funds

Index funds

Fixed-income funds

Balanced funds

Share savings account

Investment account

Downloadable forms

Fixed-income funds

What is a fixed-income fund?

How much does it cost to save in fixed-income funds?

Learn about interest management in DNB (in Norwegian only)

title

Liquidity funds

Bond funds

title

DNB Active Rate

Are you looking for advisory services?

The Spare app

Fixed-income funds FAQs

Sustainability in mutual funds and in our advice

Our mutual fund products

Mutual fund list

Digital adviser

Equity funds

Index funds

Fixed-income funds

Balanced funds

Share savings account

Investment account

Downloadable forms