For Quick Alerts
For Daily Alerts

Deutsche MF pioneers launch of inflation-indexed bond fund


Deutsche MF pioneers launch of inflation-indexed bond fund
Deutsche Asset Management India on Wednesday launched two funds namely DWS Inflation Indexed Bond Fund and DWS Top Euroland Offshore Fund. With the launch of the inflation indexed bond fund, Deutsche Mutual Fund house became the first entity to launch such a fund that aims to provide inflation-adjusted returns.


DWS Inflation Indexed Bond Fund's new fund offer will remain open for subscription from January 16 until January 27, 2014 while the other DWS Top Euroland Offshore Fund can be subscribed from January 9, 2014. Both the newly launched funds are open-ended schemes.

DWS Inflation Indexed Bond Fund will invest primarily in inflation-indexed bonds. Such instruments primarily issued by the government of India features return (principal and interest payments) that is linked to WPI or wholesale price index inflation.

As per the mutual fund house, the open ended debt fund will invest approx. 72% of the total corpus in IIBs while the re-maining would be invested in other G-securities. The benchmark for the fund is I-Sec Composite Index.

Investment objection of the scheme: With investment in inflation indexed bonds, the funds primary objective is to provide investors with above inflation returns. According to the last held RBI auction, WPI-linked IIBs are currently offering a competitive yield @ 3.6% above WPI while WPI as on November 30, 2013 stands @ 7.5%. So, IIBs by and large are highly attractive for investors.

Other benefits: The fund further aims to leverage accrual income plus any capital appreciation on IIBs.

Liquidity and Tax-efficient returns: By investing in the fund through the mutual fund route, investors can realize liquidity benefits together with tax-efficient returns.

The other launched fund DWS Euroland offshore fund is an open- ended overseas fund of funds (FOF). The new fund of fund will invest in European equities. The benchmark for the underlying fund is Euro Stoxx 50.

Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more