Fund Objective
The Investment objective of the scheme is to provide reasonable returns and liquidity by investing in a range of debt and money market instruments while maintaining the balance of safety, liquidity and returns such that the Macaulay Duration of the portfolio is between 6 months to 12 months. There is no assurance that the investment objective of the Scheme will be achieved.
Notes
The Scheme shall follow an active investment strategy to manage the assets of the fund and will make investments as per the asset allocation pattern of the Scheme. The scheme aims to identify securities which offer optimal level of yields/returns, considering risk-reward ratio. An appropriate mix of debt and money market securities will be used to achieve this. The scheme will invest in Debt & Money Market securities such that the Macaulay Duration of the portfolio is between 6 months and 12 months. With the aim of controlling risks, rigorous in-depth credit evaluation of the securities proposed to be invested in will be carried out. The credit evaluation includes a study of the operating environment of the company, the past track record as well as the future prospects of the issuer, the short as well as longer-term financial health of the issuer. Additionally, outlook on macro-economic conditions, including the political, economic environment and factors affecting liquidity and interest rates should help in forming a view on direction of interest rates and to align the portfolio appropriately to take advantage of the same. The Scheme may use derivative instruments like Interest Rate Swaps, Interest Rate Futures, Forward Rate Agreements or other derivative instruments for the purpose of hedging, portfolio balancing and other purposes, as permitted under the Regulations. It may also invest in securitized debt. The Scheme may undertake repo transactions in corporate debt securities in accordance with the directions issued by RBI and SEBI from time to time. Such investment shall be made subject to the guidelines which may be prescribed. The Scheme may refer to certain in-house models which would be based on various prevailing broad market parameters and would be dynamic in nature. The same may be referred by the fund manager as required from time to time.