Liquid funds invest primarily in money market instruments like certificate of deposit, treasury bills, commercial paper and term deposits. Liquid Funds invest only in securities which mature in less than 91 days.
Return) Investment Objective is ‘True to Label’ Fund are managed with a clear mandate of suitability and objective Simple Products with simple asset allocation Follow prudent risk management approach based on funds’ objectives No Private Corporate Credit Risks Portfolio Liquidity is a key objective Proprietary Research process & team driven portfolio investment process Top down Macro Research and Bottom up Credit Research Portfolio investment decisions are team based Please refer Scheme Information Document of the Scheme for complete Investment Strategy 2 Fixed Income Investment Philosophy
Investment Strategy GDP, inflation, monetary & fiscal policy and currency forecast the direction and the level of interest rates Credit Research, Market Research, Spreads and Liquidity Analysis The macro & micro analysis narrows down to a list of securities based on the investment objectives and risk parameters Maturity profile, credit profile and risk (duration, liquidity) profile Micro Analysis - company and instrument analysis Portfolio Construction Analysis of long term macro economic indicators 3 Top-Down Macro Investment Process
Investment Strategy Company filtering based on sector, industry and peer aggregates Proprietary credit analysis – qualitative management assessment, fundamental factors, Forecasts. The macro & micro analysis narrows down to a list of buyable credits for portfolio selection Selection based on liquidity, yields, spreads and relative value Minimum Investment grade Credit rating analysis Company Analysis Portfolio Selection 4 Credit Research & Investment Process
& Companies Maintaining Contingency Funds As portfolio stabilizer Objective Preserve Capital Create ample liquidity Earn sensible returns (higher than Current & Saving Bank Account) Do not Invest in Liquid Funds for just returns; Aim to keep your money Safe & Liquid 6 Liquid Fund Objective
treasury bills and top rated PSU debt No Private Credit – Not invested in private corporates Disciplined Asset Liability Management – portfolio is constructed in a way to maintain ample liquidity at all times Research Driven Process – Our research-driven process aims to perform across time horizons, interest rate cycles in varied economic environments 7 QLF staying “True to Label” Focus on managing risks and generating sensible returns with high liquidity
one of the 1st Liquid Fund to follow full Mark- to-Market (MTM) of entire portfolio to determine fair value of the portfolio on daily basis. High Standard of Transparency - Follow weekly disclosure of portfolio along with market commentary Easy Access – Always ready to resolve Investors queries and have easy access to Fund Managers. 8 Fairness & Transparency