According to the press release, the Trust MF Liquid Fund will follow a structured investment approach backed by unique methodology, with the objective of delivering consistent risk-adjusted returns. The robust methodology has been developed in collaboration with Crisil, the knowledge partner for initial debt schemes of Trust Mutual Fund.
The methodology will assist the fund management team in:
- Defining a high-quality investible universe of issuers with focus on long term ratings
- Creating a model portfolio with broad-based weights on outstanding amounts
- Portfolio construction using model portfolio as the guiding framework
- Portfolio optimization with LimitedACTIV methodology
- Portfolio laddering across maturity buckets along with segmental allocations
“At Trust Mutual Fund, we believe in coming out with differentiated and relevant solutions for our investors. TRUSTMF Liquid Fund will invest only in those select companies’ papers, whose long term rating is high and stable as well. Not all companies with highest short term rating enjoy high ratings on the long term rating scale,” says Sandeep Bagla, CEO, TRUST Mutual Fund.
“We will be creating a portfolio with weights based on outstanding issuance amounts, consisting of highest rated issuers with high liquidity. Our liquidity will be high as portfolio liquidity depends on credit quality & liquidity of its investments and not on the size of the portfolio,” says Anand Nevatia, Fund Manager of Trust Liquid Fund.