SAIKAT NEOGI AS FLOATER mitigate interest rate risks and adjust the duration based on prevailing interest rates, investors are finding them attractive. In August, when most debt-oriented schemes saw net outflows, floater funds attracted net inflows of *2,325 crore, data from Association of Mutual Funds in India show.
Floater funds invest in debt securities where coupon rate is dynamic in nature. The funds invest in a blend of floating rate and fixed-rate instruments, including government securities, corporate bonds, and money market instruments. The diversification spreads risk and potentially delivers higher risk-adjusted returns compared to bank fixed deposits.
Experts recommend such funds to those who want to invest for a short term, say, six months, as these are protected from interest rate risk. Moreover, these funds carry lower risk compared to equity instruments, making them suitable for risk-averse investors.
Adjust fund duration
Denne historien er fra September 18, 2023-utgaven av Financial Express Mumbai.
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Denne historien er fra September 18, 2023-utgaven av Financial Express Mumbai.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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