I am quoted in today’s Mint on WPI inflation indexed bonds. This is an instrument that is sorely needed but seems to have flopped with no investor interest.
Axis Asset Management, even as it has applied to float an inflation-indexed bond fund, is yet to buy the bond in any of its existing schemes.
“The bond is definitely attractive, but we don’t own it, and we aren’t buying it any time soon,” said R. Sivakumar, head of fixed income and products, Axis Asset Management. He did not rule out the possibility of including this bond in the portfolio, but liquidity is a problem.