Anurag Mittal and Arvind Subramanian will be the fund managers. The scheme is benchmarked against the NIFTY Low Duration Debt Index.
“In addition to the growth-oriented announcements made in the recent Union Budget, factors such as stress on banking balance sheets seem to be stabilizing. The manufacturing sector may get a boost from corporate tax cuts announced earlier alongside a robust production incentive scheme roll out and improving global trade. Government revenues are also 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,” said Vishal Kapoor, CEO – IDFC Asset Management Company Limited (AMC).
The fund currently targets a low to short duration portfolio such that it is suitable for a minimum recommended investment horizon of six months. At the time of investing, the portfolio strategy will aim to maintain a minimum of 70% in AAA/A1+Equivalent/Sovereign/Quasi Sovereign securities, and the fund does not intend to invest in securities rated lower than AA-. With this diluted credit strategy, the fund is designed for investors looking to diversify their current fixed income portfolio.
