JM High Liquidity, earlier known as JM Debt, has been a consistent performer in its four-year tenure. The fund also offers liquidity since investments above Rs 1 lakh can be redeemed within one working day.
The fund took off with investments in corporate bonds of varying credit quality to boost interest income. Besides, the fund actively reshuffled its portfolio to rake in higher returns in times of high call rates. However, the surging corpus since late 2000 saw the fund shift gears to liquid and highly traded instruments - treasury bills and commercial papers. Apart from high quality and short maturity profile, these instruments offer trading opportunity amidst declining interest rates. Further, the high liquidity follows active management of portfolio maturity. For instance, with the debt markets turning volatile in September 2001, the fund has sharply cut down the average maturity from 98 days in August to 33 days in September.
Based on the average 7-days rolling return, the fund has given a 9.54 percent over the past one-year. For its focus on quality and risk management, JM High Liquidity is an attractive cash fund.