Massive de-leveraging and credit crunch driven by the US and spreading to Europe has led to widespread selling across asset classes including equities with bigger selling in real estate & commodities. The selling is aggravated by redemption pressures driven by the fear about economic slowdown and collateral damages seen elsewhere. Coordinated policy action by central banks and governments across the globe is aimed at providing stability to financial markets more specifically the credit markets and improve the business environment. Closer home, Indian economy is largely driven by domestic consumption (67% of GDP) and infrastructure creation and is expected to be more resilient than other emerging economies. While the tighter monetary conditions prevailing currently would moderate growth in the near term, economy is expected to do well over medium to long-term as RBI moves to easing mode. The macro economic environment & the growth would be supported by declining commodity prices and peaking out of interest rates would further help. It is therefore reasonable to expect India's growth to sustain over a longer period. We believe that considering current volatility in the global markets, Investors with a conservative asset allocation can opt for this fund as they can benefit from investing in the Income fund as at current interest rates & expectation of falling interest rate will help in generating higher income yield & potential capital appreciation while equity portion of the investment would contribute to incremental returns when the volatility subsides. SIP/STP is the preferred way of investing .