For any product from Vivekam, a process of “Plan – Prepare – Perform” is always a given thing. “NIFTY FLOATER” has also followed the same and the entire team of Vivekam is today proud to see it’s first entry into alternatives for debt investment category perform beyond the set goals.
In its first six months after launch, “NIFTY FLOATER” has performed so well making all investors extremely delighted. Being an alternative to debt product, a desire to have high liquidity feature be built in can be understood. By providing an automatic route of liquidity on last Thursday of every month, the returns earned by investors in this product has baffled all the market pundits.
For the period ended 30th of October 2014, “NIFTY FLOATER” helped investors earn an income of 76.74 Lacs on a total investment of 24.43 crores. This translated to a return of over 3% per month.
When you compare the returns offered by any mutual fund in this country, you will realise that the best debt mutual fund, ICICI Prudential Long Term Fund has given a return of 1.25% per month followed by a few other mutual funds which managed to generate a return of 1.1% per month. “NIFTY FLOATER” has managed to beat all comparable debt mutual funds in the country by a wide margin in the month of October, having generated 3% per month.
In the month of November “NIFTY FLOATER” generated an income of 28.42 Lacs on an investment of 25.95 crores. This means the return for November was about 1.1% per month. As anticipated on the back of backtesting results, a few clients have reported negative returns in one of these months.
When you look at the returns given by debt mutual funds in November, only 5 out of several hundred debt funds schemes managed to earn a higher return than “NIFTY FLOATER”. Out of them four mutual funds were marginally better while the top performing ICICI Prudential Long Term fund has earned 16.87% per annum or 1.40% per month.
However if we consider the returns from “NIFTY FLOATER” for both the months put together and compare with the performance of mutual funds, “NIFTY FLOATER” stands way ahead of any other mutual fund in this country. Annualised return from “NIFTY FLOATER” stood at 24.31% while the best mutual fund stood only at 16.37%. “NIFTY FLOATER” has so far rewarded the investors with a return in excess of 30% per anum, on average during the last six months.
“NIFTY FLOATER” product shies away from taking a price directional bet on the stocks or the market and will endeavour to earn an income that is at least higher by 100% of comparable liquid funds. Having generated a return of more than 30% per annum for investors in the last six months, this product has proven its merit beyond doubt and is attracting a lot of new clients.
The concept of “NIFTY FLOATER” has adequately been explained in a previous article posted on this blog. To read more about this product, you may click here.