Vivriti Short Term Bond Fund

• The fund invests in senior debt issued by retail financial services companies core to economy, and expected to play a key role in revival out of COVID-induced slowdown
• The fund invests in entities with proven track record of delivering financial services to individuals for income generation, and small enterprises. These firms have raised multiple rounds of private equity from marquee global & domestic investors or are backed by large, reputed groups

The Fund seeks to achieve a superior risk-adjusted return by investing in debt instruments issued by businesses that provide retail financial services, including NBFCs, in the areas listed below.

• Formal and informal businesses: Working capital, term, machinery, and general-purpose loans are available to micro, small, and medium-sized businesses.
• Education: Suppliers of loans to low-income private schools for infrastructure improvements and student education loans.
• Entrepreneurs: Individuals who provide asset-backed and small-ticket unsecured loans for income generation.
• Individuals: for housing, healthcare, disaster relief, and consumption.

The trust is consistent with India’s growth prospects, in which the availability of timely and effective finance is critical to the development of enterprises, the rise of entrepreneurship, and the support of economic consumption.

• No poverty: Put an end to poverty in all of its forms everywhere.
• Good health and well-being: Ensure a healthy lifestyle and promote well-being for people of all ages.
• Gender equality: Make gender equality a priority and enable all girls and women.
• Decent work and economic growth: Encourage inclusive, long-term growth in the economy, full and productive employment, and decent work for all.
• Industry, innovation and infrastructure: Construct resilient infrastructure, and encourage inclusive and sustainable industrialisation and innovation.
• Reduced inequalities: Reduce inequity within and between countries.

Bond funds in short-term bonds invest in bonds that mature in one to three years. Because of the short time until maturity, interest rate risk—or the risk that rising interest rates will cause the Fund’s principal value to fall—is low compared to intermediate- and long-term bond funds. Even the most conservative short-term bond funds will experience some share price volatility.

Due to the lower risk of short-term bond funds, many investors use them as a higher-yielding substitute for money market funds. Short-term bond funds are usually the next rung regarding risk and potential return.

Interest rate changes impact bond payments, and short-term bonds have fewer payments to make. A small change in interest rates for a year or two will have little effect on a bondholder’s income. However, if that bond has several years of payments left, small changes in interest rates can result in significant gains or losses.

• Industry 1^st AIF product which provides annual return of capital and quarterly coupon
• Investing in well-regulated entities with healthy capitalization and high vintage
• First loss protection available to senior tranche
• The Senior tranche (i.e. Class A) is rated as CRISIL AA+ (SO) for capital protection available in Vivriti Short Term Bond Fund
• No MTM or interest rate risk
• Alpha of 500 bps + over traditional fixed income products

About the Product