The Debt Market in India presents different investment opportunities for the investing connoisseur. There are options like the Axis Constant Maturity 10 year fund
where one can get an indirect play on the 10 year G Sec benchmark or you have the Axis Fixed Income Opportunities a fund that tries to capture best opportunities across accrual, credit and duration spectrum with controlled risk
Different segments of the yield curve perform at different times
There are different portfolio strategies possible within the debt market space.Which of the below strategies performs depends on the market environment at any time.Axis Fixed Income Opportunities Fund is an unique product that allocates across all the three strategies, thus offering an all-weather product for investor with minimum impact on changing market dynamics.
- An accrual strategy focuses on buying high quality bonds that generate reasonable yield and holding them to their maturity to minimize uncertainty from changes in interest rates.
- A Credit approach looks at risk reward trade-off of buying bonds that may be rated lower than the highest credit rating of AAA. The portfolio manager looks for bonds that offer attractive yield while adjusting for their higher risk.
- A third strategy looks at dynamic management of maturity to take advantage of opportunities offered by changes in market interest rates. Here the focus is not so much on the accrual of the bonds purchased but the potential for making capital gains from trading these bonds.
Key Features of Fixed Income Opportunities Fund
- An open-ended diversified debt fund with no exposure to equities
- A low risk fund suitable for an investment horizon of 6 months or more
- Investing in a portfolio of debt and money market instruments
- Portfolio targets an average maturity in the range of 1 to 3 years
- Endeavors to capture opportunities in the yield curve spreads in the short duration segment
This Product is Suitable for Investors who are seeking
- Stable returns in the short to medium term
- Investment in debt and money market instruments across the yield curve and credit spectrum
Investors should consult their financial advisers if in doubt about whether the product is suitable for them