The Hindu Business Line : ING Vysya MF to unveil `Floating Rate Fund'

ING Vysya Mutual Fund is in the process of unveiling a `Floating Rate Fund' within a week or ten days, the Chief Marketing Officer, ING Investment Management (India) Pvt Ltd, Mr Sushil K. Sharma, has said.

Briefing presspersons, he said that the proposed scheme would be launched as soon as the Securities and Exchange Board of India (SEBI) cleared the papers. Stating that this was part of its strategy to offer a comprehensive product range across the risk-reward spectrum, he said that the proposed scheme would aim at providing a regular stream of income while minimising the risk arising from interest rate fluctuation.

Mr Sharma said that this would be the first `floating rate' product from the ING stable. He indicated that the company was contemplating to introduce the `Select Debt Fund' scheme in July. This scheme, he said would look at taking the call on rated instruments. `It is expected to give higher yield without enhancing the risk,' he added.

To a query on market sentiment, he said, `Though it continues to remain weak, we expect bond market gains to come from spread compressions, especially because corporate spreads appear attractive at current levels. The budget to be presented by the new Government would give some clarity on the Government's thinking on various issues such as keeping a check on its expenses, its resolve to keep fiscal deficit low and on the future direction of interest rates on the various administered saving schemes.'