An open ended dynamic debt scheme investing across duration
The fund is positioned in the dynamic bond fund
category to take exposure across the curve
depending upon the fund manager’s underlying
interest rate view where we employ the majority of
the portfolio. It is a wide structure and conceptually
can go anywhere on the curve.
The government has been prudent so far in rationing its stimulus
response, focusing first on sustenance and keeping a growth stimulus for
later. Despite the government’s prudence so far, however, the load on
the fiscal is heavy. A necessary condition for financing this is a
well-functioning bond market. The measures announced in August
should now restore normal functioning and allow the substantial
borrowing requirement to start going through without undoing the
transmission channel.
Having said that, it is also true that more than 50% of an INR 20 lakh
crore plus (center and states combined) borrowing program is still ahead
of us. One shouldn’t expect a very large sustainable rally in bonds basis
just the current set of triggers, although one should reasonably expect
most of the recent aggressive sell-off to get unwound. However
re-instatement of orderly functioning now allows participants to start
deploying risk capital with more confidence to take advantage of what
are quite attractive valuations given the underlying backdrop of an
unprecedented growth drawdown and a collapse in credit growth.
The external account is our one significant macro strength today and
provides adequate cushion to RBI to persist with a dovish policy for the
time-being. For all these reasons, our view remains that the important
current pillars of policy will sustain for the foreseeable future. The spike
in inflation presents an interpretation problem for now and it remains our
base case that it will not shift the narrative away from growth for
monetary policy, despite throwing up higher average CPI prints for the
year. In our opinion, focus has to be on best quality AAA and sovereign /
quasi sovereign. There is no macro logic whatsoever for pursuing high
yield strategies.
Category: Dynamic Bond
Monthly Avg AUM: Rs2,617.16 Crores
Inception Date: 25th June 2002
Fund Manager:
Mr. Suyash
Choudhary (Since 15th October 2010)
Standard Deviation (Annualized): 4.21%
Modified duration: 5.53 years
Average Maturity: 7.20 years
Macaulay Duration: 5.70 years
Yield to Maturity: 6.26%
Benchmark: CRISIL Composite Bond
Fund Index
Minimum Investment Amount: Rs5,000/- and any amount thereafter.
Exit Load: Nil (w.e.f. 17th October
2016)
Options Available: Growth, Dividend -
Periodic, Quarterly, Half Yearly, Annual
and Regular frequency (each with
Reinvestment, Payout and Sweep
facility)
Maturity Bucket:
PORTFOLIO | (31 August 2020) |
Name | Rating | Total (%) |
Government Bond | 98.10% | |
6.79% - 2027 G-Sec | SOV | 44.67% |
7.26% - 2029 G-Sec | SOV | 27.86% |
7.17% - 2028 G-Sec | SOV | 16.44% |
6.97% - 2026 G-Sec | SOV | 9.12% |
8.20% - 2025 G-Sec | SOV | 0.004% |
Net Cash and Cash Equivalent | 1.90% | |
Grand Total | 100.00% |
This product is suitable for investors who are seeking*:
• To generate long term optimal returns by active management
• Investments in money market & debt instruments including G-Sec across duration
*Investors should consult their financial advisors if in doubt about
whether the product is suitable for them.
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