The strategy has been executed well, with a core portfolio of 60-65% that reflects his medium-term view, while the remaining 35-40% is used to take short-term tactical calls on markets.
Reliance Short-term Debt Fund is managed by Prashant Pimple, who has 15 years of experience on the fixed income research and fund management. He has been with the fund house for more than a decade and has exhibited a flair for managing duration strategies.
Pimple works within the constraints of a well-defined template to create a balanced portfolio. Economic, credit, and liquidity analysis form the pillars of the investment process. The investment strategy is research intensive and relies mainly on fundamental research. The call on duration is taken by studying the macroeconomic scenario.
Investment strategy
The strategy has been executed well, with a core portfolio of 60-65% that reflects his medium-term view, while the remaining 35-40% is used to take short-term tactical calls on markets. Pimple uses government securities to increase the duration of the fund when he has a positive view on interest rates. However, given the fund's short-term billing, he avoids getting into G-Secs with maturity beyond three years and restricts the G-Sec exposure to 25% of the portfolio.
The manager runs a quality portfolio and, hence, invests around 60%-65% in AAA/A1+ rated bonds. The manager typically invests 20%-25% in sub-AAA rated assets to enhance the portfolio yield. The manager ensures he does not invest in below-AA rated bonds.
Portfolio duration
Pimple can vary the portfolio duration within 1.5 to 2.5 years based on his view on medium- term interest rates. Pimple invests in corporate bonds with a two- to five-year maturity range. This strategy provides protection from volatility and hence the fund's portfolio risk remains relatively lower than its peers.
The fund is a credible option for investors looking for safer investments for a one-to three-year time frame.
Some of the companies the fund has invested in include Reliance Industries, Axis Bank, Reliance Jio Infocomm, NABARD, HDB Financial Services, HDFC, REC and Indiabulls Housing.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Investment")
)
The strategy has been executed well, with a core portfolio of 60-65% that reflects his medium-term view, while the remaining 35-40% is used to take short-term tactical calls on markets. Pimple uses government securities to increase the duration of the fund when he has a positive view on interest rates. However, given the fund's short-term billing, he avoids getting into G-Secs with maturity beyond three years and restricts the G-Sec exposure to 25% of the portfolio.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}