An exclusive webinar was held on YouTube between Mr. Vikas Agrawal and Mr. Irfan Mohammed. Mr. Vikas is the Founder and CEO of AIF & PMS Experts India Pvt. Ltd is also the host of this informative webinar. Our webinar guest Mr. Irfan is the Fund Manager of Vivriti Asset Management. In this webinar, our host and guest discussed a lot of interesting and crucial things from investing point of view. This webinar is one of a kind that will give you knowledge about fixed income investing opportunities.
Webinar Overview
- It is the first time that AIF & PMS Experts India has organized a webinar on fixed income investing. In this webinar, you will know how the investment process is done in a particular form of investment.
- How Vivriti started their journey, in what sections they generally work, and their expertise are all discussed in the conversation with Mr. Vikas Agrawal. Our guest also discussed and beautifully explained the importance of fund managers.
- He explained how the fixed income investment is done with examples, charts, and graphs. He explained the characteristics of Credit AIF and mutual debt funds. He defined mutual funds as the open fund architect architecture, which means those funds are essentially managing three levers of risk for their valuable investors.
- He showed how long-term investment in a potential entity could give great returns.
About AIF & PMS Experts India
AIF & PMS Experts focus on multi-asset Alternative Investments. Portfolio Management Services, Public Equity (both listed and non-listed), Venture Capital, Private Debt Structured Products, and Real Estate Alternative Investments are among our key services.
We have envisioned a vision of fostering trust in governance, maintaining transparency, and facilitating our clients’ long-term wealth creation. Our numerous products, analytics, and tools are critical to our business and help us achieve our goals.
We are confident in India’s growth story. We have always recognised the significance of investments as a driver of economic growth. And our Founder, Mr. Vikas, exemplifies this belief. He is deeply enthusiastic about understanding the strengths and untangling the weaknesses of businesses and business management.
Fund Manager Profile
Irfan has over nine years of experience in finance, strategy, and credit investing across multiple industries. He has effectively handled several high-yield exposures and is knowledgeable about credit negotiation, structuring, and post-investment management. Irfan is enthusiastic about accelerating the transition to a low-carbon economy and is interested in sustainable investing.
He completed his engineering and came from IIM, Bangalore. Before joining Vivriti Asset Management, he worked as a portfolio manager and credit analyst, managing one of the largest funds for parity.
Investment Philosophy
They have figured out how to break into the Performing Credit space. Its best-in-class technology platform uses high-frequency data and internally developed models to dynamically monitor credit risk. Their unwavering, in-person due diligence process eliminates the opacity of the unlisted market.
Vivriti is the result of a vision to mainstream India’s mid-market and a willingness to go the extra mile by challenging the status quo. It is no easy task, but our team believes otherwise. While grit, determination, and passion are important components of this journey, our destination lies across the bridge of unwavering perseverance.
The emergence of corporate digital records – GST, financial statements, pension payments, legal records, and so on – has added a tremendous source for assessing governance risk.
- Assessment:
We spend two days at each potential portfolio company’s office to better understand them. It is supplemented by our technological capabilities, allowing us to capture their digital footprint completely.
- Structuring:
Our funds’ key design elements include principal protection, predictability, and safety. Every fund limits its concentration in a single enterprise or segment, reducing risk significantly. Furthermore, our funds are designed with the appropriate incentive alignment for the manager.
- Risk management:
Consistent, stringent post-transaction monitoring, combined with digitally enabled early warning signals, keeps us on top of any emerging situation.
Prudent Risk Management
Diversification: Only diversification can decrease three major risks: governance, technology, and the business cycle. To mitigate company/sector risk, we invest across market capitalisation, sectors, and companies.
Staggered Investment Approach: AAA constructed the portfolio over time. We do not use a model portfolio strategy.
Defined Exit Strategy: AAA has a well-thought-out Exit plan. Due to portfolio rebalancing, a change in the portfolio company’s growth expectation, and costly values, we sell/reduce.
What is a fixed income investment strategy?
Fixed income is an investment strategy that focuses on capital and income preservation. It typically includes investments such as government and corporate bonds, certificates of deposit, and money market funds. Fixed income can provide a consistent income stream while posing less risk than stocks.
Performing Credit:
India’s corporate bond market is currently crowded with AAA and AA-rated bonds, accounting for over 90% of outstanding bonds. AAA and AA bonds are safe, but their inflation-adjusted yields are negligible.
This space, which we call Mid-Market Performing Credit, is extremely underserved and lacks adequate discovery. The issuers are operating companies with ratings ranging from unrated to ‘A’ that borrow at high-interest rates. Banks, mutual funds, and NBFCs have been unable to meet these companies’ debt capital requirements over the last several decades. As a result, there is a noteworthy opportunity below AA ratings.
Webinar Key Points:
- Investing through this AIF fixed income investment strategy generally gives high returns, so inflation’s influence is very little.
- Their investment strategy is potential enough to fail.
- From 8% to 16%, returns can be achieved as per their performing credit.
- A mutual fund’s three levers manage the risk’s duration, credit risk, and liquidity. Hence, fund managers have an idea what would be the associated risks, liquidity, and amount of return.
- The investment manager should take proper care of credit risk. They can manage this in various and diversified ways. Vivriti takes care of only the fixed income credit class efficiently.
- As clean energy is growing, they are also focusing and investing in clean energy.
Parting Note:
As there are great opportunities for investors, they can invest for a great return. Hence, investors should have a sufficient risk appetite. But it is also important to be aware and invest. You may consult AIF & PMS Experts India for the best suggestions regarding investment.
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