Aditya Birla Sun Life Cash Manager Fund: A Fund To Manage Your Cash for a Short Duration

Aditya Birla Sun Life Cash Manager Fund is a scheme offered by Aditya Birla Sun Life Mutual Fund from ultra-short term debt space. Before we talk about the fund, let us first understand what ultra short-term mutual fund is. rnUltra short-term mutual funds are the funds that provide the highest liquidity and invest in fixed income instruments that are mostly liquid and have short maturity periods up to six months. Although these funds do shield investors’ money against interest rate risk, they are not immune to the market fluctuations. Hence, they are little riskier than liquid funds. ABSL Cash Manager Fund is an open-ended scheme that strives to generate capital appreciation whilst providing superior liquidity by having a diversified portfolio that invests in debt and other money market instruments. The fund has been managed by two of the virtuous and experienced fund managers- Mr. Kaustubh Gupta who has been working with the fund since July 2011 and Mr. Mohit Sharma who took hold of the fund recently in April 2017. ABSL Cash Manager Fund Growth - An Outline It was launched on May 14, 1998, and since then it has delivered 7.43% average annual returns. These returns are still better than what FDs and savings accounts of the banks offer. It takes CRISIL Short-Term Bond as its benchmark to keep track of its performance. The best part is that investors need not worry much about their investment as the risk involved is of moderately low level. Investors can even start their investment with as little as Rs.500 in SIP mode and minimum SWP withdrawal amount is Rs.1000. The portfolio of the fund has investment in AA, AAA, A1+, SOV, cash equivalents, etc. Currently, the fund has investment in a total of 97 securities. The total assets managed by the fund as on April 30, 2018 are Rs.9,061 cr. ABSL Cash Manager Fund G- Fund’s Performance The trailing year returns of the fund have constantly beaten the trailing returns of its benchmark for 1, 3, 5, and 10 years. This can be seen from the table below. If we look at the calendar year returns of the fund, then it is evident that it has beaten its benchmark continuously since 2006. The NAV of the fund is Rs.419.25 which shows its popularity among the investors investing in this category. Why Invest in This Fund? If you are willing to create a contingency fund and do not want to park your money in savings accounts or FDs of the banks, then you can invest in this fund. Also, if you need your cash back around in three months or in a year, then too this is a great option to go for. This fund can be used as a substitute for short bank deposits of 90 or 120 days.