The Scheme will retain the flexibility to invest in the entire range of debt and money market instruments. The flexibility is being retained to adjust the portfolio in response to a change in the risk to return equation for asset classes under investment, with a view to maintain risks within manageable limits.
The asset allocation under the Scheme will be as follows :
||Type of Instruments
(% of Net Assets)
(% of Normal Allocation)
(including securitised debt)
|80 - 100
||Low to Medium|
||Money Market instruments
(including cash / CBLO / Reverse Repo)
|0 - 20
Pending deployment of funds of the Scheme in securities in terms of the investment objective of the Scheme, the AMC may invest the funds of the Scheme in short term deposits of scheduled commercial banks.
Debt securities (in the form of non-convertible debentures,bonds, secured premium notes, zero interest bonds, deep discount bonds, floating rate bond / notes, securitised debt,pass through certificates, asset backed securities, mortgage backed securities and any other domestic fixed income securities including structured obligations etc.) include, but are not limited to :
- Debt obligations of the Government of India, State and local Governments, Government Agencies and statutory bodies (which may or may not carry a state / central government guarantee).
- Securities that have been guaranteed by Government of India and State Governments.
- Securities issued by Corporate Entities (Public / Private sector undertakings).
- Securities issued by Public / Private sector banks and development financial institutions.
Money Market Instruments Include
- Commercial papers
- Commercial bills
- Treasury bills
- Government securities having an unexpired maturity upto one year
- Collateralized Borrowing And Lending Obligation (CBLO)
- Certificate of deposit
- Usance bills
- Permitted securities under a repo / reverse repo agreement
- Any other like instruments as may be permitted by RBI / SEBI from time to time
Investments will be made through secondary market purchases, initial public offers, other public offers, placements and right offers (including renunciation). The securities could be listed, unlisted, privately placed, secured / unsecured, rated / unrated of any maturity.