Kotak Mahindra (UK) has launched a new Luxembourg domiciled UCITS compliant fund, India Fixed Income Fund.
The new fund will primarily invest in debt securities issued by the central or state governments of India or issued by companies of Indian origin or deriving a significant portion of their business in India, reported The Asset.
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The fund aims to generate total returns through exposure to a diversified portfolio of debt securities including INR denominated T-bills / government bonds, INR denominated debt securities issued by corporates in India and foreign currency debt securities issued by Indian corporates denominated in currencies other than INR.
The fund will focus on high income accrual from fundamentally strong companies with a good credit standing and duration play to capitalize on the current high interest rate environment that is expected to ease over the next 12 to 18 months, according to the publication.
The fund will also aim to actively manage offshore and onshore debt securities allocations considering the difference in returns.
Tanveer Sethi, fund manager at Kotak Mahindra (UK), was quoted by The Asset, saying: "The current account deficit has improved, the rupee stabilized, and the GDP growth rate seems to be bottoming out. With some support from the centre, we should see the economy gaining momentum from hereafter."
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By GlobalData"Global integration and greater access to foreign investors would help increase the width and depth of the Indian credit market, creating new investment opportunities," he added.
