The Indian Fixed Income market is passing through a very tough time with the YoY WPI at stubbornly sticking at around 12% mark and is expected to remain in double digits for some more time to come. The central bank in order to keep inflation under control ensured tight liquidity in the banking system, which lead banks to borrow as high as Rs. 90000 crores under RBI LAF. The liquidity situation has become very uncertain therefore we have been maintaining very low average maturity in the liquid plans and trying to generate returns by investing in very short term floating rate instruments therefore this plan is recommended to those investors who have investment horizon of 7 days to 15 day.
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