LIQUID ALTERNATE STRATEGY

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Get higher returns than Liquid Funds with Liquid Alternate Strategy

Introduction

Through Liquid Alternate Strategy, we aim to take advantage of steepness in the money market yield curve.
The fund follows a roll down strategy and generates capital gains if the rate drops or spreads compress.

Investment Philosophy

Buy 6-9 months instruments, and sell
after 3-6 months at the 3-6 month
rate, given the steepness available

Investments are into high quality &
liquid bonds/CPs with less than
1 year residual maturity

Ideal for tenor between
3 to 12 months


Key Attributes

Credit control
through customized
portfolios

Yield pick-up with ability
to take advantage of
yield curve steepness

Potential for capital
gains through
roll down leading to higher returns

No commingling
impact like in
mutual funds

As liquidity improves, spreads
will likely compress, leading to
an added benefit

Performance Comparison (Annualized)

As on 30th September 2020