Birla Cash Manager Fund Online
In this fund we have been running a modified duration in the range of ~1 year for the last couple of months. In the 1-2 year bonds space the spreads and carry currently look attractive to us owing to the liquidity position of the economy now & as expected to be in future with RBI's efforts towards moving to a neutral liquidity position from a the current deficit one. We believe that the RBI's efforts on infusing liquidity into the system to move it from deficit liquidity to neutral liquidity is going to ease short term rates going forward. Hence, it is only justified to benefit by investing in 1-2 year segment now and benefit going forward when the yields come down.
Owing to this strategy, the fund is at the higher end of its duration band (0.5 – 1.25 yrs) and hence, the credit risk taken in the fund at this time is limited.
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