Synopsis
DSP Mutual Fund has launched the DSP Floater Fund, an open ended debt scheme predominantly investing in sovereign bonds and overnight index swaps (OIS).
By ET OnlineLast Updated: Mar 05, 2021, 10:36 AM ISTDSP Mutual Fund has launched the DSP Floater Fund, an open ended debt scheme predominantly investing in sovereign bonds and overnight index swaps (OIS).
The fund house says that the new scheme aims to help investors navigate the interest rate cycles better. The NFO opens on March 04 and will close for subscription on March 17.
DSP Floater Fund will invest in securities in the duration band of 1 to 4 years with interest rate hedge using paid position in OIS. The scheme will allocate a minimum of 65% and a maximum of 100% in floating rate debt securities and have exposure mainly in sovereign securities issued by state and central government and OIS for creating synthetic floating rate exposure. The Scheme also proposes to invest up to 35% in fixed rate debt securities including money market instruments.