The primary investment objective of scheme is to seek income and minimize risk of capital loss by investing in a portfolio of fixed income securities. The Scheme may invest a part of the assets in equity and equity related instruments to seek capital appreciation. The scheme is oriented towards protection of capital’ and ‘not guaranteed returns’. The orientation towards protection of the capital originates from the portfolio structure of the scheme and not from any bank guarantee, insurance cover etc.
The scheme will not participate in repos in corporate debt securities. The Scheme will invest only in such debt securities which mature on or before the maturity of the scheme. The scheme will not invest in domestic and foreign securitised Debt.
The scheme may invest in derivative instruments for hedging and Portfolio balancing. The maximum gross notional amount of derivative position (including debt and equity) will be restricted to 50% of the net assets of Scheme. Within the overall limit of 50%, the maximum gross notional amount of equity derivative position shall be 18% of the net assets of the scheme. Presently, No invest will be made in foreign securities.
For calculation of Gross Derivative Exposure, all types of derivative exposure i.e. long and short term will be aggregated. The aggregate exposure to Debt Instruments, gross derivative exposure and money market instruments (excluding CBLO, REPO, instrument wise hedge position and others cash equivalents with residual maturity of less than 91 days instruments) will not exceed 100% of the net assets of scheme. Investment in equity and equity related instruments shall be restricted to 18% of the net assets of the scheme.