NFO Alert: Shriram Mutual Fund Launches Liquid Fund for Short-Term Objectives
Shriram Asset Management Company has announced the launch of Shriram Liquid Fund, an open-ended liquid fund, which will provide reliable short-term returns with low to moderate risk. This fund is meant to help investors keep their money safe while also making it easy to access when needed.
The Shriram Liquid Fund would invest primarily in high-quality debt and money market instruments with the main objective of generating returns having low risk. The scheme will have an average maturity of up to 91 days and would concentrate on A1+ rated instruments for safety and liquidity, and it would be doing a mix of investments through stable financial instruments earning returns by minimal risk.
The new fund’s portfolios will be diversified across sectors, a blend of Certificates of Deposit, Commercial Papers, Treasury Bills, Government Securities and Short-term NCD. The investment strategy will take a research-focused approach for investments with the interest environment and credit quality evaluation keeping the investor’s choices secure.
The Shriram Liquid Fund is an easy option for both retail investors and corporate investors. For retail investors, it provides the opportunity to earn more than a regular savings account on their ideal funds, while for businesses, it serves as a reliable cash management option. The fund’s “SLR” approach – Stability, Liquidity, and Returns, gives it a well-rounded value for those seeking steady performance and easy access to their funds. It also offers an attractive facility for holding emergency savings with minimal volatility.
The minimum amount for investment in the scheme is Rs.1,000, which can be made as a one-time lump sum or by monthly SIP. The exit load is applicable only for the first six days and the same is waived post-seventh day. Apart from these, a Systematic Transfer Plan allows one to transfer his money from Shriram Liquid Fund to another Shriram fund on account of changes in the market conditions. All the investments are easily manageable online through the secure ShriFunds portal at the company’s website.
This thought process results in asset allocation and flows nearly 75 to 80% of assets to CDs and CPs. Moreover, the division on models suggests 5% in overnight papers, 25% in Certificates of Deposit, 50% in Commercial Papers and 20% in Treasury Bills that need to be reassessed and revised according to prevailing market conditions.
In short, Shriram Liquid Fund gives an overall balanced opportunity for any individual seeking to earn the maximum savings out of his short-term funds. Since it focuses on safety, easy access to funds, and steady returns, it can be considered one of the extremely versatile options to satisfy various financial needs.
