Corporate Investment Management
After thoroughly understanding the risk profile and investment objectives of the client, IFA documents a comprehensive investment policy addressing every aspect associated with an investment, i.e., credit risk, interest rate risk, FX risk (if applicable), reinvestment risk, and liquidity risk (ALM risk).
The policy articulates
- Which credits to invest in and up to what extent
- What should be the permissible instruments
- Maximum Duration/PV'01 that can be taken
IFA helps clients configure an optimal asset allocation that maximizes return while containing risks within predetermined tolerance limits.
IFA sets up a mechanism to monitor risks on an ongoing basis and also devises MIS to review the performance of investments
IFA helps the client manage investments dynamically by highlighting opportunities for enhancing portfolio yield under prevailing market conditions. For instance, IFA helps clients rotate funds between liquid funds, short duration funds, corporate bond funds, arbitrage funds, and gilt funds based on the prevailing level of overnight rates and liquidity in the banking system, the shape of the term structure, credit spreads, fiscal policy, and monetary policy dynamics.