OUTLOOK

This is the second phase of global financial repression and is likely to be pronounced and sustained for developed markets. For countries like India, where long term financing needs are substantial, the saver will have to come into focus at some juncture. Meanwhile, investors are living with very low absolute yields on quality bonds with lower duration risk. Steep yield curves and wider credit risk premia are tempting avenues to increase returns. However, both these phenomena are logical pricing of the risks embedded in the system. Importantly, the magnitude of shock underway is unprecedented and the information available to assess its impact is thin. Therefore, it is very critical that investors follow a logical framework for allocation and not get pushed into taking risks that are outside their realm of appetite and / or aren’t well thought out. Outside of agriculture, the macro narrative hasn’t changed discerningly for the better for the rest of the economy. Hence, this isn’t time to move into diluted credits despite the collapse in quality rates & it is critical to wait for an improvement in the underlying environment. In the meanwhile, one has to live with this period in the least damaging way possible. In our view this is accepting lower returns for now rather than unnaturally expanding risk appetite.

     ASSET QUALITY

     FUND FEATURES: (Data as on 31st July'20)

Category: Gilt Fund with 10 year constant duration
Monthly Avg AUM: Rs301.23 Crores
Inception Date: 9th March 2002
Fund Manager:
Mr. Harshal Joshi (w.e.f. 15th May 2017)
Standard Deviation (Annualized): 2.97%
Modified duration: 8.11 years
Average Maturity: 12.41 years
Macaulay Duration: 8.36 years
Yield to Maturity: 6.31%
Benchmark: CRISIL 10 year Gilt Index (w.e.f. 28th May 2018)
Minimum Investment Amount: Rs5,000/- and any amount thereafter.
Exit Load: Nil
Options Available: Growth & Dividend Option - Quarterly, Half yearly, Annual, Regular and Periodic (each with payout, reinvestment and sweep facility).
Maturity Bucket:

PORTFOLIO

(30 June 2020)

     RISKOMETER