Micro portfolios are typically a Hold to Maturity portfolio, containing NCD’s, PTC’s, and other instruments. It targets the mid yield mid risk space (ratings between AA and BBB-) using a buy-to hold approach with a 1 to 3-year horizon. This portfolio is meant to be held to maturity in client’s own demat account as transaction is done on true sale basis.
Scient Capital Micro Portfolio
Yield and exact trade amount are subject to change based on actual payment date.Product Note
LOI Micro Portfolio
To invest, simply download this Transation Form, Fill in the required details and Send it on "Scient Capital Private Limited, 1503 Lodha Supremus,
Lower Parel, Mumbai – 400 013"
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Micro Portfolio is suitable for
Investors can think of this as an allocation of their fixed income portfolio. It will provide better returns than existing options in the fixed income space like bank FD, corporate FD and debt mutual funds.
For affluent investors, this is an attractive investment avenue because of volatility in equities and commodities market, comparatively low yields in bank deposits, debt mutual funds and high real estate prices.
Why invest in Micro Portfolio
The widened spreads of AA to BBB rated papers over G-Sec offer a credit arbitrage spread of 3% - 4% p.a which is being targeted in this portfolio.
This portfolio is meant to be held to maturity in client’s own demat account based on true sale basis.
Our investment approach goes beyond credit ratings.We have a robust data-driven system for credit assessment and pricing – in our analytical framework called SCAPFe.
The typical yields are in the range of 11% to 12% p.a. - which are higher than typical yields in credit risk Mutual fund. The portfolio will have principal repayment at regular intervals and will consist of nonconvertible debentures (NCDs) and pass-through certificates (PTCs).
A rigorous, well researched, and systematic approach ensures replicability, scalability, and consistency of returns.
- Compared to PMS, minimum investment is 50 lakhs whereas similar securities can be bought in small tranches of Rs. 10 lakhs. Multiple tranches can also be bought, but each tranche will be of a minimum Rs. 10 lakhs tranche, or a multiple of Rs. 10 lakhs tranche.
- Compared to FMPs, the typically, minimum tenure is generally of 3 years whereas Micro portfolio are of shorter duration with regular income in bank.
- Compared to MFs, these are a set of chosen securities giving targeted yields. Micro portfolio’s give option to select securities as per investor’s choice.
Scient Capital will provide a monthly tracker of the portfolio holding of the securities, as informed to us, on a voluntary basis, which will however, not be legally binding. In addition, this in no way takes away the character of the transaction as a “True Sale”.
Scient Capital, on a best effort basis (depending on liquidity in the market, sector, interest rates, and other factors) might offer to buy back the security at an appropriate price (as judged best by Scient Capital), if the client wishes to look for an exit from these securities.
However, Scient Capital in no way can give any assurance on the re-purchase of these securities at any time whatsoever.