In times of market volatility and economic uncertainty, investors are increasingly seeking stable, predictable returns to safeguard their wealth and generate consistent cash flow. Monthly income funds have emerged as a compelling solution, particularly for conservative investors who prioritise capital preservation alongside regular income. Designed to provide steady monthly distributions, these income funds are ideal for retirees, high-net-worth individuals, and income-focused investors.
The Rixon Income Fund stands out as a high-yield, non-property private credit strategy that delivers meaningful monthly income while maintaining a strong focus on capital protection. With a target return of 10% – 12% p.a. net, it has historically paid out monthly distributions of 0.92% – 1.00%. The Fund is tailored to meet the needs of conservative investors seeking certainty in uncertain times.
Understanding Monthly Income Funds
Monthly income funds are structured investment products designed to deliver relatively predictable monthly income. They achieve this through a range of strategies, including fixed-income instruments or asset-backed financing. A key feature is their focus on capital preservation, with risk managed through secured lending or high-quality credit exposure.
Unlike term deposits, which often offer low yields with limited flexibility, or bonds that may fluctuate in capital value and only provide semi-annual coupons, monthly income funds present a more dynamic alternative. With structured loan portfolios and diversified borrower exposure, these funds can offer more attractive returns, especially in today’s low-rate environment.
Rixon Capital’s approach to income is distinct. The Rixon Income Fund leverages non-property, asset-backed loans to Australian SMEs, providing security-backed returns while avoiding the cyclicality and risk associated with property development lending.
Why Conservative Investors Are Turning to Monthly Income Funds
Monthly income funds are gaining traction among conservative investors for several key reasons:
- Predictable Cash Flow
The monthly income enables more effective budgeting, particularly important for retirees, self-funded investors, or family offices seeking to align income with ongoing expenses.
- Lower Correlation to Equities
Because these funds are not directly tied to equity market performance, they reduce portfolio volatility and serve as a hedge during periods of market stress.
- Capital Preservation
By focusing on senior-secured loans, these funds prioritise the security of principal. In the case of the Rixon Income Fund, stringent due diligence and strong loan structuring practices underpin every lending decision.
- Passive Investment with Expert Oversight
Investors benefit from professional management, deep credit expertise, and ongoing monitoring, making it an attractive hands-off investment.
How Rixon Capital Delivers Monthly Income
The Rixon Income Fund is a private credit fund specifically designed to generate stable, high-yield income for wholesale investors. The Fund invests in asset-backed, senior-secured loans to established Australian small to medium-sized enterprises (SMEs) with strong fundamentals and clear repayment strategies.
Key highlights of the Fund include:
- Target Net Return: 10% – 12% per annum
- Monthly Distributions: 0.92% – 1.00% paid to investors
- Risk Mitigation: Collateralised lending, priority security positions, conservative lending practices, robust borrower screening, and rigorous legal structuring
The Fund benefits from the Rixon Capital team’s decades of combined experience in credit and M&A, having executed over $500 million in SME private credit loans and $10 billion in corporate transactions. This depth of expertise allows Rixon Capital to assess credit quality and structure deals in a manner that optimises yield while protecting investor capital.
Key Features of the Rixon Income Fund for Conservative Investors
- Diversified Loan Portfolio
The Fund lends to multiple SMEs across sectors, thereby reducing concentration risk and enhancing income reliability.
- No Exposure to Property Development
Unlike some credit funds, the Rixon Income Fund excludes property development and construction lending, focusing instead on lower-volatility, non-speculative borrower businesses.
- Liquidity & Access
Investors can access their capital with a 90-day redemption notice, with best-efforts liquidity available within 30 days, providing flexibility without compromising fund stability.
- Transparency
Rixon Capital provides regular reporting and clear communication, including monthly fund performance updates, so investors remain informed and confident in their investment.
Who Is Eligible to Invest?
The Rixon Income Fund is available exclusively to wholesale and sophisticated investors as defined under the Australian Corporations Act. It is particularly well-suited for individuals and entities with medium-term investment horizons who seek a regular monthly income and a high degree of capital preservation.
How to Get Started with Rixon Capital
Investing in the Rixon Income Fund is a straightforward process. Eligible investors can initiate their investment by:
- Confirming eligibility as a wholesale investor
- Completing the onboarding process with Rixon Capital
- Selecting a platform, such as OLIVIA123, HUB24, Netwealth, or Mason Stevens, to access and manage their investment
Once onboarded, investors receive monthly income distributions, along with ongoing updates and performance reporting to ensure transparency and clarity throughout the investment journey.
In today’s uncertain economic climate, monthly income funds represent a compelling option for conservative investors. These funds combine the dual benefits of regular income and capital security, offering a dependable alternative to traditional fixed-income products.
For those seeking a proven and professionally managed solution, the Rixon Income Fund offers both peace of mind and performance. With its consistent monthly distributions, disciplined lending strategy, and commitment to transparency, Rixon Capital remains a trusted partner for investors seeking income, security, and long-term financial stability.
To learn more, visit https://rixon.capital/ to talk to our experts.
