DSP Mutual Fund has launched DSP Floater Fund, an open ended debt scheme predominantly investing in sovereign bonds and overnight index swaps (OIS).
In a press release, the fund house said that the scheme aims to offer relatively stable returns for investors without worrying about changes in interest rate cycles by navigating interest rate.
“Roll down funds have been a preferred choice for many investors in the 3 years. DSP launched its own roll down fund – Corporate Bond Fund when rates were high (9%) in 2018. As the interest rate cycle shows signs of reversal, we felt it is a good time to introduce a roll down sovereign (short term) fund with OIS that helps hedge against the interest rate risk. The attempt is to capture the term spread at 5 years but minimise volatility if interest rates rise,” said Kalpen Parekh, President, DSP MF.
