IDFC Floating Rate Fund - NFO closes on on 16 February 2021

IDFC Floating Rate Fund - NFO closes on on 16 February 2021
The IDFC Floating Rate Fund is a debt scheme that predominantly invests in floating rate instruments. The NFO is live and closes on 16 February. Here are its details.
**Good to knowFloating rate instrumentsThese are debt instruments with an interest rate that are reset periodically. The periodicity of the interest reset could be daily, monthly, quarterly, half-yearly, annually or any other periodicity that may be specified in the terms of the investment scheme. **Investment-grade credit ratingsFinancial instruments are rated ‘AAA’, ‘AA’, ‘BBB’, to indicate the likelihood of default, or the possibility of the debt obligation not being met as promised. Instruments rated AAA are considered the safest. Meanwhile, instruments labelled ‘+AA’, ‘AA’ and ‘-AA’ are considered to have a high degree of safety and carry very low default risk.
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Investment objective
The fund aims to generate returns by creating a portfolio of floating-rate instruments and other debt and money market instruments. It is a satellite instrument, meaning a fund that can accommodate duration risk or credit risk or both.
Duration risk refers to the idea that changes in interest rates may reduce the value of an asset’s value. Further, the fund does not aim to invest in securities rated lower than AA- at the time of investment.
As per the fund house, the scheme is suitable for those who aim to stay invested for over six months.
Click here to invest in this NFOAsset allocation
| Instrument | Allocation (% of total assets) | | Risk profile |
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    | Instrument | Minimum | Maximum | Risk profile |
    | Floating Rate instruments (including fixed-rate instruments converted to floating rate exposures using swaps/derivatives) | 65 | 100 | Low to medium |
    | Debt and Money Market Instruments other than Floating Rate instruments | 0 | 35 | Low to medium |
    | Units issued by REITs & InvITs | 0 | 10 | Medium to high |
Scheme details
| Name | IDFC Floating Rate Fund |
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    | Type | Open-ended debt Scheme predominantly investing in floating rate instruments |
    | Category | Mutual fund |
    | Investment objective | xxx |
    | Benchmark | Nifty Low Duration Debt Index |
    | Entry/Exit load | Entry Load: Nil Exit Load: Nil |
    | Fund manager | Mr. Anurag Mittal Mr. Arvind Subramanian |
    | Options | Dividend and Growth |
    | Minimum application amount (during NFO) | ₹5,000 and in multiples of ₹1 thereafter |
    | Additional application amount | ₹1,000 and in multiples of ₹1 thereafter |
Click here to invest in this NFO
| This product is suitable for investors who are seeking*: | Riskometer |
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    | To generate short-term optimal returns To invest predominantly in floating rate instruments | |
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
Note: The above information has been sourced from the Scheme Information Document provided by IDFC Asset Management Company Limited. To read the entire document, click ** here**. Disclaimer RKSV Securities India Private Limited (ARN/Distributor
  • 107930; brand name Upstox) is the distributor of the mutual fund. Please consult your investment advisor before investing.
Mutual fund investments are subject to market risks, read all scheme related documents carefully.