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Indian Bond Fund
View the fund guideOpens in new windowImportant information.
Important Information
- The Fund invests in Indian Rupee denominated debt and debt-related securities issued by government or government-related bodies; and/or corporations (including holding companies of such corporations) in India.
- The Fund is therefore exposed to risks associated with debt securities, sovereign debt, investing in sub-investment grade and/or unrated debt securities, emerging market (including India), concentration, FPI registration, limitations on investments, India tax, securities lending transactions, exchange rates and exchange control.
Why invest in Indian bonds?
Diversification benefits
Low correlation with many markets and low foreign exchange (FX) volatility of Indian rupee (4%) vs emerging market (EM) ex-Asia FX basket (14%) (1)
Strong returns of 65% in 10 years
Outperformed over the last 10 years versus many asset classes, beating Asian equities (51%) and EM bonds (-3%) (2)
Global index inclusion
Index inclusion to the J.P. Morgan GBI-EM Index starting in June 2024 is already driving strong inflows of US$7 billion in Q1 2024 (3)
Key benefits investing in abrdn's Indian Bond Fund
Running yield of 7.2%p.a.
Receive monthly income (4) from a fund with a running yield of 7.2%p.a. (5) Source: abrdn, 31 March 2024. Running yield is not representative of payout yield.
(Aim at monthly distribution. Dividend rate is not guaranteed. Dividend may be paid out of capital. Please refer to important information 4.)
Low volatility
Low portfolio risk of 5.3% (6)
Ease of access
Bypasses complex Indian market rules for international investors
Fund information
Key documents
Related videos
(1) Source: Bloomberg, emerging market ex-Asia FX basket, 1-year implied volatility, 31 March 2024.
(2) Source: Bloomberg, USD, Indian bonds represented by Markit iBoxx ALBI India, Asian Equities represented by MSCI AC Asia Ex Japan, Emerging Market Bonds represented by JPM GBI-EM Global Diversified, 10 years to 31 March 2024. Past performance does not predict future results.
(3) Source: National Securities Depository Limited, 15 April 2024.
(4) Please refer to our literature webpage for additional disclosures on the income statistics of the fund.
(5) Source: abrdn, 31 March 2024. Running yield is the annual income on an investment divided by its current market value. The running yield of the fund is not representative of the payout yield. A positive yield does not imply a positive return of the fund.
(6) Source: Morningstar, 3-year standard deviation, A MInc USD share class, 31 March 2024.
Disclaimer
This website is strictly for informational purposes only and does not constitute an offer to sell, or solicitation of an offer to purchase any security, nor does it constitute investment advice, investment recommendation or an endorsement with respect to any investment products.
Bloomberg data are for illustrative purposes only. No assumptions regarding future performance should be made.
©2024 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.