Aries is a debt PMS strategy with the objective of earning higher risk adjusted returns by taking exposure in debt securities in India. It targets the intermediate yield space (ratings between AA and BB) using a buy-to hold approach with a 2 to 3-year horizon.
2 Minutes Introduction of ARIES
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Our Performance Track RecordScient Capital is an expert in credit assessment and debt portfolio management – with a collective experience of over 75 years and delivered returns to investors.
Overall Approach And Value AdditionA well designed portfolio of credit opportunities in India can deliver ~3% more post-tax returns than bank fixed deposits and debt mutual funds.
Our data-driven approach is embodied in SCAPFe
Who is Aries 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 Aries
Accrual is the way forward for debt investments in India
and there aren't many funds targeting intermediate yield
(ratings between AA and BB) like Aries.
The widened spreads of AA to BB rated papers over
G-Sec offer a credit arbitrage spread of 3% - 4% p.a
which is being targeted in Aries.
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 strategy will invest primarily in the BFSI sector. The sector
which is sufficiently capitalised, well-regulated and with virtually
zero defaults in last 25 years as shown in a study by CRISIL.
The target IRR for the fund is 14% - 17% (gross) and post-tax and
post-fees target net return of 9.5% - 10.5%. This, we believe, offers
a 2-3% spread over usual debt mutual funds.
A rigorous, well researched, and systematic approach ensures
replicability, scalability, and consistency of returns.