Fund houses eye debt-focused investment products to gain traction

Industry experts also suggest that the plain vanilla income-accrual funds could also find a few takers in the current environment

With bond yields hardening and equity market returns narrowing, fund houses are pinning their hopes on debt-focused investment products to gain traction. While most of them have started pushing for fixed-income products, some are launching new fund offers (NFOs) to fill the product lacunae.

Edelweiss AMC, for instance, is set to launch a ‘dynamic bond’ fund soon. “Fixed-income products such as dynamic bond funds have disappointed investors, especially at the long end of the yield curve. There has been lot of volatility without decent returns. We plan to launch a more process-oriented fund in the dynamic bond category that can