Shriram Mutual Funds, operated by Shriram Asset Management Company, has launched a New Fund Offer (NFO). The NFO, Shriram Liquid Fund, is an open-ended liquid scheme.
The NFO, which opened today, will close on 8th November 2024. This liquid scheme comes with a relatively low-interest rate risk and moderate credit risk.
The fund offers investors a stable, liquid alternative to traditional savings accounts, with safety and liquidity for short-term funds, the AMC said in a statement.
This new fund aims high liquidity by investing in debt and money market instruments. The fund will maintain an average maturity of up to 91 days.
Shriram Liquidity fund investment approach
The fund would invest in A1+ rated instruments and aim to prioritise Stability and Liquidity while achieving an optimum balance on Returns of the scheme by following a systematic approach towards investments. The liquid fund would do this by diversifying investments across sectors and picking up papers which historically have had a highest possible rating along with stable rating outlook.
An appropriate balance of debt securities such as Certificates of Deposit, Commercial Papers, T-bills, G secs and money market NCDs will provide low volatility with safety. The portfolio will be constructed with a research driven process which will take into account interest rate cycles along with a robust approach towards credit evaluation and credit cycles.
Kartik L Jain, MD & CEO, Shriram Asset Management Company Limited said, “Shriram Liquid Fund aligns with our mission to offer solutions that enhance financial flexibility for investors. The fund’s value proposition is anchored around the SLR approach, which offers a balanced mix of stability, liquidity and returns potential, making it an ideal option for both retail and corporate investors.”
This fund could be helpful for retail investors in earning better returns than saving accounts on their idle cash, as well as for corporates for their cash management purposes as the scheme would provide liquidity with low volatility, Jain said.
Investors can regularly invest in the Shriram Liquid Fund to meet their short term financial and family goals while maximising their returns on their idle funds.
The minimum investment amount for lumpsum or SIP is Rs 1000. There is graded exit load up to six days and no exit load from the 7th day.
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