Deutsche arm files papers to start inflation-linked bond mutual fund

Deutsche Asset Management, part of global banking major Deutsche Bank AG, has filed papers with the Securities and Exchange Board of India (Sebi) to start a bond mutual fund linked to inflation.

The 'DWS Inflation Indexed Bond Fund' expects to allocate a minimum 70 per cent towards inflation-linked bonds. According to the document, this fund would have low risk.

"The investment objective is to generate income and capital appreciation indexed to inflation by investing in a portfolio of inflation-indexed bonds," according to the scheme information document filed with Sebi.

However, details about amount to be raised and launch date were not mentioned.

Deutsche Asset Management (India) Pvt Ltd, is the mutual fund division of Deutsche Asset & Wealth Management in India.

The Reserve Bank of India (RBI) had in May announced launching inflation-linked bonds every month, as part of its efforts to discourage investments in gold. The bonds are expected to attract household savings of up to Rs 15,000 crore in the current financial year.

The government's first issue of the 10-year inflation indexed bonds on June 4 fetched Rs 1,000 crore.

With inputs from PTI