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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 volatility of Indian rupee (5%) vs emerging market currency basket (17%) (1)
Strong returns of 64% in 10 years
Outperformed in the last 10 years across many asset classes, beating Asian equities (35%) and emerging market bonds (-11%) (2)
Under-owned, set for index inclusion
Less than 2% owned by foreign investors and zero allocation in global and emerging market (EM) indices is beneficial for early movers into Asia ex-Japan’s 2nd largest sovereign market (3)
Key benefits investing in abrdn's Indian Bond Fund
Running yield of 7.3%p.a.
Receive monthly income(4) from a fund with a running yield of 7.3%p.a.(5) Source: abrdn, 31 October 2023. Running yield is not representative of payout yield.
Diversified exposure
Invests in government, state, quasi and corporate debt; can hold bonds denominated in rupees and USD resulting low volatility of 5.5% (6)
Ease of access
Bypasses complex Indian market rules for international investors
Aim at monthly distribution. Dividend rate is not guaranteed. Dividend may be paid out of capital. Please refer to Important Information 4.
Fund information
Key documents
Related videos
(1) Source: Bloomberg, emerging market ex-Asia currency basket, 1-year implied volatility, 31 October 2023.
(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 October 2023.
(3) Source: Bloomberg, 28 August 2023. Bloomberg data shown for illustrative purposes only. No assumptions regarding future performance should be made.
(4) Aims at monthly distribution. Dividends are not guaranteed and may be paid out of investment income, capital gains or capital at the discretion of the Board of Directors. Any dividends paid and distributed out of the Fund’s capital will result in an immediate reduction of the Fund’s Net Asset Value per share. Past dividends are not a guide to future dividends. Please refer to our literature webpage for additional disclosures on the income statistics of the Fund.
(5) Source: abrdn, 31 October 2023. Running yield is the annual income on an investment divided by its current market value. Running yield is a calculation that divides the income from coupons by the market price of the security. The running yield of the fund is not representative of the payout yield. Past performance does not predict future results.
(6) Source: Morningstar, 3-year standard deviation, A MInc USD share class, 31 October 2023.
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.
©2023 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.