Bharti AXA sees yields fall, to launch bond fund

Bharti AXA sees yields fall, to launch bond fund
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First Published: Tue, Dec 02 2008. 05 53 PM IST
Updated: Tue, Dec 02 2008. 05 53 PM IST
Reuters
Mumbai: Bharti AXA Investment Managers will launch a short-term bond fund on 3 December, eyeing an expected fall in bond yields as India relaxes monetary policy to prop up a slowing economy, the fund house said on Tuesday.
“G-Sec yields are expected to fall due to decline in growth momentum, demand for money and reduced corporate issuance,” said Chief Executive Sandeep Dasgupta in a statement, adding the cetral bank could cut interest rates as inflation moderates.
Bharti AXA Short-Term Income Fund will invest at least 30% of its assets in debt and money market instruments with maturity of up to 370 days and the rest in papers with higher maturities.
The firm, in which French insurer AXA has a 75% stake, held an average assets of about Rs4 billion through one equity and three fixed income funds end-November, data from the Association of Mutual Funds in India showed.
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First Published: Tue, Dec 02 2008. 05 53 PM IST