by Suman Gupta
An open-ended debt scheme predominantly investing in floating rate instruments
A relatively High Interest Rate Risk and Moderate Credit Risk.
Highlights:
- NFO opened on April 10, 2023 and closes on April 24, 2023
- Investment approach is to invest predominantly in floating rate instruments (including fixed rate instruments converted to floating rate exposures using swaps/derivatives)
- Investors may aim to benefit from changing interest rate
Mumbai, April , 2023: Baroda BNP Paribas Mutual Fund has announced the launch of Baroda BNP Paribas Floater Fund, an open-ended debt scheme predominantly investing in floating rate instruments. The fund will be managed by Prashant Pimple (16 yrs. experience) and Mayank Prakash (15 yrs. experience) and will be benchmarked against CRISIL Low Duration Debt Index.
The investment objective of the scheme is to generate regular income through investment in a portfolio comprising predominantly of floating rate instruments and fixed rate instruments swapped for floating rate returns. The Scheme may also invest a portion of its net assets in fixed rate debt and money market instruments. The Scheme will see investment in Floating Rate Debt Instruments (including Fixed Rate Debt Instruments swapped for floating rate returns) (65% – 100%), Debt and Money Market Instruments (0% – 35%) and REITS and INVITs (0%- 10%)
“Baroda BNP Paribas Floater Fund is an all-weather product that aims to deliver market related returns across interest rate cycle. As the fund shall pre-dominantly invests into floating rate instruments, the returns of the fund shall align with the prevailing interest rates. As the interest rates have risen over last couple of years, the coupon earnings of floating rate securities have also risen in line, making them attractive for investors.” said Suresh Soni, CEO, Baroda BNP Paribas Mutual Fund. “As floating rate securities are less volatile compared to fixed income bonds, this fund is also suitable for investors seeking regular income over short- term investment horizon,” he added.
The NFO opened on April 10, 2023 and will close on April 24, 2023
