Deutsche to launch India's first inflation-linked bond fund

Deutsche Asset Management, part of Deutsche Bank AG, is set to launch India's first inflation-linked bond mutual fund, according to documents filed with market regulators late on Wednesday.

The DWS Inflation Indexed Bond Fund expects to allocate 70 per cent to 100 per cent of its portfolio to India's inflation-linked bonds, with the rest for other debt securities. The filings did not mention how much the fund would raise.

India re-launched inflation-linked government bonds earlier this month selling Rs1,000 crore ($176.06 million) of 10-year bonds, while Larsen & Toubro Ltd became the first corporate house to issue such debt last month.

The Indian government has been keen to sell inflation-indexed bonds to wean investors off gold as a hedge against rising prices, says Reuters.