TRUST Mutual Fund | Philosophy

The core of our investment philosophy is to deliver consistent risk adjusted returns. We aim to provide research driven, validated and back-tested investment options that are designed to meet investment needs across all stages of life.

Our investment process has stringent internal risk management parameters in order to mitigate portfolio risk within specified levels and run a diversified portfolio to deliver consistent risk adjusted returns to our investors.

Some key parameters that we shall endeavour to use in our investment process are

Investible Universe
    Issuers with stable high ratings | Selected on Quality, Stability and Liquidity Filters.

Model Portfolio
    Accurate representation of the Universe | Created on Outstanding Issuance amount.

Portfolio Creation
    To reflect Model Portfolio characteristics | Constructed within predefined deviation limits.

Limited Active Management
    Portfolio optimization | Evaluated on Relative Valuations, Spreads and Term Structure.

Validation
    Periodic review of Universe, Model Portfolio and Actual Portfolio | By an Independent Credible Agency.

#Hypothetical Example

We filter issuer based on some of our unique filters which leads to our investible universe of select issuers.

  • AAA and AAA(CE) Rated Issuers....................................135
  • Liquid and Semi Liquid Issuers........................................70
  • Issuers with Stable Outlook.............................................64
  • Issuers with AAA conservative Rating..............................55
  • Issuers with No Rating Change in Last 2 years.................45
Eligible issuers for the Universe - 45

Model portfolio created based on amount outstanding that represents at least 70% of the universe

  • Issuers categorised as liquid, semi-liquid and illiquid based on market volumes and spread over GSec. Illiquid issuers eliminated from the eligible set of issuer.
  • Based on our back testing we observed that based on our approach the investible universe experienced only 3 instances of single notch downgrade and no defaults.

Past Performance may or may not be sustained in future.

Disclaimer - This is just an example in order to explain our investment approach and overview. It is not definitive and can be modified. Actual portfolio construct may vary.

#Hypothetical Example

  • Model Portfolio Allocation to reflect broad based category outstanding, adjusted for regulatory constraints.
  • Allocation to individual issuers and proxies in each category based on amount outstanding.
  • Limited deviation to enable efficient portfolio construction and optimisation.
  • Deviation limits validated by back testing within the scheme constraints.

Disclaimer - This is just an example in order to explain our investment approach and overview. It is not definitive and can be modified. Actual portfolio construct may vary.