Are Floating Rate Funds an ideal answer for an increasing interest rate scenario?

Are Floating Rate Funds an ideal answer for an increasing interest rate scenario?

Floating Rate Funds have garnered a lot of interest lately. Since these funds invest in instruments that are not the usual plain-vanilla fixed-coupon paying instrument, there is merit in understanding the basics of floating-rate bonds and synthetic floaters. The video attempts to break the myth that these funds are the perfect hedge against the rising yield situation.

In this edition of Investwise, watch Mr. Anurag Mittal (Senior Fund Manager – Fixed Income) discuss about floating rate funds, synthetic floaters and whether this category is indeed the solution to hedge interest rate risk.

FloatingFundsideal

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