Shriram Mutual Fund to Launch Shriram Liquid Fund

Shriram Asset Management Company has announced the launch of the Shriram Liquid Fund, an open-ended liquid scheme aiming to generate optimal returns with minimal interest rate risk and moderate credit risk. This new fund, designed for short-term investors, will offer high liquidity by focusing on debt and money market instruments. The New Fund Offer (NFO) opens on November 4, 2024, providing an investment avenue that combines stability with liquidity.

Composition & Strategy

Shriram Liquid Fund seeks to maintain a low volatility profile by adhering to a well-diversified investment strategy. The fund’s portfolio will primarily consist of high-grade instruments rated A1+ and will maintain an average maturity of up to 91 days, thereby limiting exposure to interest rate fluctuations. 

The asset allocation strategy includes a balanced mix: 5% in overnight papers, 25% in Certificates of Deposits (CDs), 50% in Commercial Papers (CPs), and 20% in Treasury Bills (T-bills).

SLR Approach: Stability, Liquidity, & Returns

Shriram Liquid Fund’s structure follows Shriram’s “SLR” approach, focusing on Stability, Liquidity, and Returns. This approach makes it suitable for retail investors looking to earn higher returns on idle cash compared to traditional savings accounts and for corporate investors seeking effective cash management. Kartik L Jain, MD & CEO of Shriram Asset Management, emphasizes that the fund offers financial flexibility by balancing short-term stability and return potential.

Exit Load & Minimum Investment

Investors can start with a minimum investment of Rs.1,000, either through a lump sum or SIP (Systematic Investment Plan). A graded exit load applies up to six days, with no exit load from the seventh day. For flexible fund allocation, investors can opt for a Systematic Transfer Plan (STP) to move investments from Shriram Liquid Fund to other funds within Shriram AMC.

Conclusion: With Shriram Liquid Fund, Shriram AMC will cater to short-term investors seeking a low-risk, high-liquidity investment solution. The fund’s diversified portfolio, good credit evaluation, and systematic approach toward risk management make it an appealing option for both retail and corporate investors.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.