The scheme seeks to participate both in the upward and downward movements of the market by taking a directional position in futures and value hedging the portfolio with a contra options position. The long options position ensures that the downside is limited even if the view on the direction of the market goes wrong. The exposure to derivatives is gradually built over the tenure of the scheme. Since the scheme is structured as a 3-year close-ended product, the investors are advised to remain invested throughout the tenure of the scheme to derive maximum benefits. The scheme has also received an AAA (so)’ rating from CRISIL.

It’s a closed ended fund therefore; on the debt side we follow a passive fund management strategy wherein the investments were made at the inception and are only liquidated on exit or to switch for yield enhancement.