This new fund has been a little aggressive vis-à-vis its peers, but that has also translated into above average returns for the investors here. By keeping a high portfolio maturity of 95-130 days, Deutsche Insta Cash Plus generated top quartile performance in Q2 and Q3 of 2003 - a good period for debt market, which saw two repo rate cuts. Even in the recent low return phase, the fund has managed to deliver returns in line with the category average.
Nearly three-quarter of the Deutsche Insta Cash Plus's portfolio comprises of P1+ instruments and bank deposits. Initially, higher investment in P1+ instruments gave a lift to the fund's return. Lately, when debt market turned a bit hostile in the first quarter of 2004, it raised its exposure to bank deposits, thus protecting fund's return. Consequently, its average maturity has also come down to under 100 days in last couple of months. The Rest of the fund's portfolio is evenly spread over treasury bills, AAA-rated bonds and mid-quality bonds (below AAA rated bonds).
In a short span of over a year, Deutsche Insta Cash Plus has proved its strength in good as well as volatile market conditions. Below average expense ratio of 0.65 per cent further ensures that the Deutsche Insta Cash Plus's returns would largely be better than the category average.