Investment Objective: To reduce the interest rate risk associated with investments in fixed rate instruments by investing predominantly in floating rate securities, money market instruments and using appropriate derivatives. (assetmanagement.kotak.com)
The fund invests at least 80 % of assets in floating rate loans, which are often lower - quality debt securities, and other floating rate securities. (mutualfunds.com)
As a result, if interest rates rise, investment grade floating rate securities will see the level of interest that they pay rise as soon as the next rate reset date. (tradinginsights.schwab.acsitefactory.com)