Deutsche Asset Management (Deutsche AM)has filed papers with Indian market regulator SEBI to launch a bond mutual fund linked to inflation.

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The DWS Inflation Indexed Bond Fund expects to allocate 70% to 100% of its portfolio to India’s inflation-linked bonds, with the rest for other debt securities.

"The investment objective is to generate income and capital appreciation indexed to inflation by investing in a portfolio of inflation indexed bonds," according to the scheme information document filed by the German firm with the SEBI.

The document also stated that the fund will have low risk and the details regarding the launch and amount raised are not yet disclosed.

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