IDFC Mutual Fund has launched IDFC Floating Rate Fund.
The fund aims to generate relatively stable returns through a portfolio comprising floating rate debt, fixed rate debt instruments swapped for floating rate returns and money market instruments. The fund aims to invest a minimum of 65% of its corpus in floating rate securities issued by corporates or the government or convert fixed interest securities to floating via derivatives.
In a press release, Vishal Kapoor, CEO IDFC MF said, “Government revenues are likely to see a cyclical upswing. Additionally, monetary policy is genuinely accommodative. In our view, these cyclical factors could combine to provide potential tailwinds for the fund’s investment strategy.”
The fund currently targets a low to short duration portfolio such that it is suitable for a minimum recommended investment horizon of six months.
