Axis MF has launched Axis Floater Fund. The fund aims to navigate a possible rising interest rate environment. Aditya Pagaria, Fund Manager – Fixed Income, Axis MF will manage this fund.
The fund will invest in a mix of high-quality instruments and AA issuers. It targets a portfolio average maturity of 6-18 months. The fund is suitable for investors looking to park short-term surplus funds or for those looking to limit the interest rate risks in their debt portfolio, said the fund house.
Floating rate bond fund invests in floating rate bonds and as and when the interest rate moves up. The idea is to offer the new adjusted rate which is higher than the existing papers to offer a higher interest.
Chandresh Nigam, MD & CEO, Axis MF, said “The economic fundamentals are improving gradually and returning to normalcy. These are early signs of a pickup in demand and we believe we are the cusp of a new growth cycle. The country is also likely at the bottom of the interest rate cycle and we expect rates to see a gradual rate hike cycle in the medium term. The fund will provide an efficient solution for short-term investors looking to navigate a possible rising rate environment.”
