OUTLOOK

• From an investor’s standpoint, it is quite important in our view that portfolio yields be looked at somewhat dynamically.
• Thus after a 3 year bull run in bonds if the portfolio manager is creating some hedges and flexibilities that in turn are showing up as reduction in yield, then this may even be looked at as a source of comfort for investors (please refer to our note ‘Hedging fixed income in volatile times’, dated 22nd June’21 –https://idfcmf.com/article/4984 for further details).
• Similarly, if corporate / credit spreads have narrowed to unsustainable levels in some cases and the manager hence decides to move to more quality assets, this could be a move to protect against future risks to spread expansion even as it entails some dilution in portfolio yields of the current portfolio.
• Thus a static analysis of portfolio yields and choosing the highest of these for every category of funds may not optimize risk versus reward, especially at cycle turning points.

     ASSET QUALITY

     FUND FEATURES: (Data as on 30th June'21)

Category: Gilt Fund with 10 year constant duration
Monthly Avg AUM: Rs316.95 Crores
Inception Date: 9th March 2002
Fund Manager:
Mr. Harshal Joshi (w.e.f. 15th May 2017)
Standard Deviation (Annualized): 4.54%
Modified duration: 6.16 years
Average Maturity: 8.16 years
Macaulay Duration: 6.36 years
Yield to Maturity: 6.43%
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 & IDCW^@ Option - Quarterly, Half yearly, Annual, Regular and Periodic (each with payout, reinvestment and sweep facility).
Maturity Bucket:

PORTFOLIO

(30 June 2021)

     RISKOMETER