The primary investment objective of the Reliance short term scheme is to generate stable and consistent returns for investors who have invested in the scheme. It aims to do this by investing in fixed income securities short term maturity.
- Reliance Short Term Fund investments would mainly include money market investments, corporate bonds, Government Securities, etc. All of these investments would be limited to a 5 year time-period in order to cover the volatility in returns over a one year period.
- While investing, the fund manager would highlight on good quality credit assets. For doing this, around 70 to 100% investments would be made in investments with a time horizon of upto 3 years while the remaining 0 to 30% of investments would be made in investments that mature between 3-5 years. 15 to 20% tactical allocation would be made to SDLs or G-Secs on spread views and absolute views.
- The fund will be allocated largely in the AAA PSU or banking space which would allow the portfolio manager to gain higher flexibility in terms of changing asset allocation based on the average maturity.
- The fund is expected to remain running for a reasonable duration, which would be in the range of 0.75 to 2.75 years.