Stable Income/Retirement is your reward for all your hard work.
We always chase instruments that give us a stable yield. The volatility of Equity markets is not suitable to the needs of everyone. People have invested in FDs and earned a respectable return in the past. Interest rates in India were high and FDs offered by banks had high yields. Now, with falling interest rates and focus on monetary expansion and inflation tracking by RBI, many are looking for alternatives.
This has led to new products in debt MFs like Credit Risk Funds, Ultra Short-Term Funds etc. These funds were investing in illiquid and less credit worthy bonds and have taken a hit over time due to defaults and delinquencies.
So, let the Annuity Fund help you make sure of things you’ve dreamed about. It’s ﬂexible, which means you can build a portfolio to match your needs.
We offer the prospect of generating returns on your mutual fund/stock holdings.
We will first collateralize your mutual funds/Equity investments. For every asset that you put up, you receive margin after a ‘haircut’. ‘Haircut’ is determined by the exchange as a protection against market downturns.
We use the margin received post the ‘haircut’ to execute stable, conservative and market neutral derivative strategies.
This enables you to invest in long term growth story of India as well as cashing on the opportunities that markets give in short term due to volatility and imbalances.
Most of the trades are hedged and delta-neutral. Predominant strategies deployed would be Calendar/Diagonal and Vertical Spreads. This reduces the risk on the book for any black swan event, thereby keeping your capital protected at all times.
The underlying portfolio can erode in value due to market conditions leading to lesser margins and lower returns on the product.
In case of losses over and above cash held in the account, the broker will start liquidating the underlying assets held to meet the obligations unless the client pays additional cash.
Markets can turn volatile and exchanges can increase the margins needed for the contracts leading to reduction in returns due to reduced positions.