Aimed at providing optimum returns with moderate level of risk, the fund takes a measured approach to both credit and duration. The fund maintains a high-quality portfolio but is also open to taking small exposures to bonds rated AA and below. While this fund predominantly sticks to an average portfolio maturity of two to three years, it does take exposure to bonds with maturity over three years. According to the recent (June 2022) fund update released by the AMC, they have adopted a new strategy. Earlier, the fund was taking a barbell approach in anticipation of a swift rise in yields by maintaining a higher allocation in a very short duration bonds (maturing in less than one year) and simultaneously investing in long-dated bonds. However, the AMC is now taking a middle path and incrementally adding 2- to 4-year corporate bonds and G-secs. The fund house has taken this step as they believe this segment seems to have priced in future rate hikes by the RB
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