The invention relates to an ink composition including a water-dispersed resin a water dispersible colorant and water and wherein the ink composition further includes a co-solvent, wherein the co-solvent is selected from the group consisting of saccharides and co-solvents having a ring structure, wherein the ring structure contains a 5-membered, a 6-membered or a 7-membered ring. Additionally, the ink composition includes a cyclodextrin compound. The invention further relates to a method for preparing such ink compositions and to a method for applying an image onto a receiving medium using such ink composition.