IDFC Mutual Fund To Launch India's First International Debt Fund

IDFC Mutual Fund To Launch India's First International Debt Fund

Daily Current Affairs   /   IDFC Mutual Fund To Launch India's First International Debt Fund

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Category : Business and economics Published on: February 27 2023

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  • IDFC Mutual Fund (MF) is set to launch India's first international debt fund, the IDFC US Treasury Bond 0-1 Year FOF (fund of funds). 
  • With this international debt fund, Indian retail investors can now have access to diversify their investments and invest in ultra-safe, currently high-yield US treasury securities. 
  • They can also use this FOF as a hedge against their exposure to the US dollar (USD).
  • In 2022, the 1-year US treasury yields have increased from 0.38% to 4.65%, making it a good time to invest in US debt instruments.
  • It gives investors an opportunity to diversify beyond India, and into US treasurys which are seen as a safe-haven asset in times of economic uncertainty.
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