While zeroing-in investment avenues to park your client’s money for a short period or build an emergency corpus or start STP/SWP, you look for options that can provide tax advantage, high liquidity and better returns as compared to a savings bank account or fixed deposit.
In this regard, ABSL Low Duration Fund can be a good choice. The fund remains true to its label and takes lower duration, credit and liquidity risk. For instance, the fund invests in a portfolio of high credit quality and short maturity debt securities to ensure minimal credit and duration risk. It is adequately liquid as well given that it deploys over 87% of its AUM in AAA rated securities and has a well-diversified portfolio of over 100 securities.
Moreover, the current economic scenario has put ABSL Low Duration Fund in a sweet spot. Over the last few months, the short end of the yield curve has gained traction as it offers lucrative spreads. Meanwhile, the increasing odds of a rise in government borrowing to meet the fiscal deficit has made the longer end relatively uncertain.
Utility
You can recommend this fund to clients who want to preserve their money for a short period. This fund is also useful for investors who want to start STP in another scheme or schedule SWP to ensure a regular cash flow.
You can recommend this fund to retirees who want to have regular income. The fund is also suitable for clients who want to build an emergency corpus.
In fact, the fund is ideal for all the investors who want to park their money for short-term requirements coming up in the next 3-12 months.
