Ch.5 · NFO Process and Rules · medium
What is a 'floater fund' as per SEBI categorisation?
0% of students got this wrong
EXPLANATION
A floater fund invests at least 65% of its assets in floating rate instruments (bonds whose interest rates reset periodically based on a benchmark like MIBOR). Floating rate instruments provide protection against rising interest rates since their coupon adjusts upward when rates rise, making them attractive in a rising rate environment.
Practising Chapter 5 one question at a time?
Try the full chapter — 100 questions, tracked score, weak area breakdown.