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Indiabulls Liquid Fund

Type of Scheme: An Open-ended Liquid Scheme

This product is suitable for investors who are seeking*

•  High level of liquidity with commensurate returns over short term.
• Through investment in money market & debt securities with maturity of upto 91days.
•  Low Risk (Blue)

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Note: Risk is represented as:


(BLUE) investors understand that their principal will be at low risk.


(YELLOW) investors understand that their principal will be at medium risk


(BROWN) investors understand that their principal will be at high risk

Launch Date: October 24, 2011

Investment Objective: To provide a high level of liquidity with returns commensurate with low risk through a portfolio of money market and debt securities with maturity of up to 91 days.

Asset Allocation:

Instruments Indicative allocation (% of total assets) (Minimum - Maximum) Risk Profile (High/ Medium/ Low)
Money market and debt instruments with maturity upto 91 days (including floating rate debt instruments, securitized debt)* Minimum Maximum Low/ Med/High
0% 100% Low to Medium

*securitized debt cumulative allocation not to exceed 15% of the net assets of the Scheme(No investment in foreign securitized debt). The residual maturity of securitized debt shall not exceed 91 days.

Investment Strategy:
Objective of the scheme - To generate returns commensurate with low risk,  the  scheme  would  predominantly  invest  in  money  market instruments. As the turnover of the portfolio would be high, given the fact the investors in a liquid fund would deploy their funds for a short period of time, the portfolio would be structured to incorporate high liquidity by the use of cash and cash equivalents.The yield curve in the short end (overnight to 3 months) of the curve tends to remain  flat with the  least  amount  of volatility. In  such  a scenario,  the  fund  manager  would  make  attempts  to  invest  the scheme proceeds uniformly across all the maturity buckets. The  investment  team  would  carry  out  rigorous  in  depth  credit evaluation  of the money market  and debt  instruments the  scheme proposes  to  invest  in.  The credit  evaluation  will  essentially  be  a bottom up approach and include a study of the operating environment of the issuer, the past track record as well as the future prospects of the issuer and the short term / long term financial health of the issuer.

Fund Manager:


Nature of the Scheme An Open-ended Liquid Scheme
Benchmark Index Crisil Liquid Fund Index
Load Structure Entry Load: Nil,
Exit Load: Nil
Options Growth & Dividend
Sub Options Daily Dividend (Reinvestment)
Weekly Dividend (Reinvestment)
Fortnightly Dividend (Reinvestment & Payout)
Monthly Dividend (Reinvestment & Payout
Offer Price Rs.1000/- per unit
Minimum Application Amount Rs.5,000 and in multiples of Rs.1 thereafter
Minimum Additional Purchase Amount Rs1,000 and in multiples of Rs.1 thereafter
Minimum Redemption Amount Rs1,000 or 1 unit and in multiples of Rs.1 thereafter

Fund Rating: AAAmfs by CRISIL**

**CRISIL Disclaimer: A CRISIL credit quality rating on a bond fund reflects CRISIL's current opinion on the degree of protection offered by the rated instrument from losses related to credit defaults. It does not constitute an audit by CRISIL of the fund house, the scheme, or companies in the scheme's portfolio. CRISIL ratings are based on information provided by the issuer or obtained by CRISIL from sources it considers reliable. CRISIL does not guarantee the completeness or accuracy of the information on which the rating is based. A CRISIL rating is not a recommendation to buy, sell or hold the rated scheme: it does not comment on the market price or suitability for a particular investor.
All CRISIL ratings are under surveillance. CRISIL reserves the right to suspend, withdraw or revise its rating at any time, on the basis of any new information or unavailability of information or any other circumstances, which CRISIL believes may have an impact on the rating. For the latest rating information on any instrument of any company rated by CRISIL, please contact CRISIL RATlNG DESK at   or at (+91 22) 3342 3001- 09.