Offers investors a stable, liquid alternative to traditional savings accounts, with safety and liquidity for short-term funds
MUMBAI, Nov 5 (The CONNECT) – Shriram Asset Management Company limited, has launched Shriram Liquid Fund that aims to generate optimal returns with lower to moderate levels of risk, and high liquidity by investing in debt and money market instruments.
The fund which will maintain an average maturity of up to 91 days will close on November 8,2024.
Investment approach
The fund would invest in A1+ rated instruments and aim to prioritise Stability and Liquidity while achieving an optimum balance on Returns of the scheme by following a systematic approach towards investments. The fund would do this by diversifying investments across sectors and picking up papers which historically have had a highest possible rating along with stable rating outlook. An appropriate balance of debt securities such as Certificates of Deposit, Commercial Papers, T-bills, G secs and money market NCDs will provide low volatility with safety. The portfolio will be constructed with a research driven process which will take into account interest rate cycles along with a robust approach towards credit evaluation and credit cycles.
Kartik L Jain, MD & CEO, Shriram Asset Management Company Limited said, this fund could be helpful for retail investors in earning better returns than saving accounts on their idle cash, as well as for corporates for their cash management purposes as the scheme would provide liquidity with low volatility.
It is also an ideal choice for investors looking to maintain contingency funds securely and efficiently. With this new product, we continue to expand our portfolio to meet the evolving needs of our customers, ensuring they have access to reliable, research-backed investment options that help achieve their financial goals, Jain said.
Sudip More, Fund Manager, Shriram AMC said the fund will maintain a staggered portfolio allocation and accrual strategy with 75% to 80% investments in CDs and CPs. Its model allocation would be 5% to overnight papers, 25% in Certificates of Deposits, 50% in Commercial Papers and 20% in T-bills, and will be in line with the Asset allocation pattern mentioned in the Scheme Information document.
Investment Options:
Investors can regularly invest in the Shriram Liquid Fund to meet their short term financial and family goals while maximising their returns on their idle funds. The fund offers the investor the benefit of a convenient avenue to park surplus cash for the short term with an aim to earn moderate level of return with relatively lower risk. Along with the existing Shriram Overnight Fund and the recently launched Shriram Nifty 1D Rate Liquid ETF (LIQUIDSHRI), the introduction of Shriram Liquid Fund will complete the set of shorter duration debt solutions for investors.
The minimum investment amount for lumpsum or SIP is Rs.1000. There is graded exit load up to six days and no exit load from the 7th day. Investors can also set up a Systematic Transfer Plan (STP) to allocate funds from Shriram Liquid Fund to other Shriram funds especially in volatile markets.
Shriram Liquid Fund Open Till Nov 8
