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Reliance Liquid Treasury

With a rather conservative strategy of focussing on call money instruments for a larger part of its life, the fund delivered a return of 9.0834% against a category average of 9.2650%

Reliance Liquid Treasury Plan, is a short-term open-ended debt fund. Launched in March 1998, the fund offers a growth option and a weekly dividend re-investment option. With minimum investments of Rs 25000, investors can participate in the scheme on a no load basis and without any lock in. Redemption cheques will be issued within 24 hours in select centers for redemption requests received before 10.30 AM. However redemption will be honored at previous day's NAV. The fund offers Sunday NAV facility to its investors.

Reliance Liquid Treasury seeks to provide optimal return consistent with moderate level of risk and high liquidity through investments in debt and money market instruments. Launched in 1998, the fund offers a transparent portfolio for analysis from March 2000. Since the period starting March 2000, the fund has parked a predominant part of its assets in call money instruments - which offer both high liquidity and safety. These instruments accounted for close to 90% of the assets till April 2001.

With the bullish sentiments prevailing in the markets since early 2001, the fund has widened its investment basket to include corporate debentures. These instruments accounted for close to 20% of the portfolio in the last trailing quarter. While the fund has parked in AAA quality securities, the recent downgrade of IDBI has caught the fund in the wrong foot with a 14.52% exposure to the company. While picking up yields with exposure to these instruments, the fund has however held the portfolio maturity close to a safe 70 days. With this the interest rate sensitivity of the portfolio is minimised.

With a rather conservative strategy of focussing on call money instruments for a larger art of its life, the fund delivered a return of 9.0834% against a category average of 9.2650% in the last trailing year.