Vivriti's funds achieve over 11% returns for investors
Vivriti Asset Management has reported consistent double-digit returns for its debt funds over the past four years. The firm's Head of Credit, Raghunath T, highlighted their successful strategy of investing in the debt of around 30 emerging corporates in India. This approach has allowed them to earn a significant credit risk premium compared to risk-free government securities. In February, their Emerging Corporate Bond Fund delivered a return of over 13%, while the Alpha Debt Fund saw an increase of more than 11%. This strong performance is attributed to regular interest income and redemption premiums from maturing investments. The funds aim to provide stable returns, especially during times of volatile equity markets. Vivriti's investment strategy focuses on mid-sized companies that lack access to capital markets. They select investments based on credit quality and aim for returns of 11-13% for investors. Although the Emerging Corporate Bond Fund and Alpha Debt Fund are currently closed to new investments, a new fund, Diversified Bond Fund – 2, is available for investors. Investors are encouraged to consider the management team's track record and the current economic environment before investing. The Indian corporate bond market, valued at around $600 billion, is expected to grow significantly. This growth is essential as India aims to become the third-largest economy by 2047. A well-developed bond market can provide more financing options for businesses and reduce reliance on banks, benefiting both investors and the economy.