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Vivriti Wealth Optimizer Fund

IME AIF Rating: 5-star | Open for subscription: Yes | AIF Category: High Yield Debt
  • Invest in superior risk-adjusted credit in A-rated corporates: This category offers superior yields to typical debt securities held by debt mutual funds, while have substantially lower credit risk (average default rate of below 1.5% in this category) than the lower-rated papers typically in other high-yield AIFs
  • High tax-efficiency: driven by a considerable investment in MLD’s (market-linked debentures), that benefit from substantially lower capital gains taxation. The effective tax rate falls to ~22.8% (vs 42.7% for investors in the highest tax slab)
  • 10% First-loss protection: the AIF is structured in a manner, that provides a protection of 10% of the portfolio against defaults. Crisil has rated the AIF as CRISIL AA+(SO) for principal protection. The fund is structured in such a manner that principal is protected in a scenario where even 30% of the portfolio company defaults
  • Credible Investment Team & AMC: Large synergies in terms of deal sourcing and analysis from the group companies – Vivtri Capital (NBFC) & Cred Avenue (India’s largest digital marketplace for debt securities)
  • Risk of spill-over for NBFC credit issues: These exists the risk of credit-risk of the AIF being used to transfer credit risk away from the NBFC books. A strong investment process, that includes an independent senior credit professional with veto rights on all investment decisions, along with clearly laid out processes requiring board-level approvals for any such transfers does substantially help reduce (but not eliminate) this risk
  • An attractive investment opportunity: Vivriti Wealth Optimiser fund is an attractive investment opportunity, for investors seeking to earn higher post-tax yields than that offered by debt mutual funds without taking on a high level of incremental risk. The combination of investing in an attractive market segment (A-rated corporates), via a tax-efficient structure (MLD’s) and first-loss protection, make this an appealing high-yield option for investors

AMC

Highly recommended for investors looking to invest in high-yield risk-adjusted debt securities: The presence of CredAvenue as a key asset and differentiator makes Vivriti a leading AMC in debt AIFs. The unique insights it provides are extremely valuable for asset management to source, evaluate, do due diligence and monitor credit risk constantly. Along with that Vivriti's first loss protection across most strategies ensures investors better risk-adjusted returns.

AMC Rating

4 of 5 stars

AMC Pedigree

5 of 5 stars

AMC Size

4 of 5 stars

Team Pedigree

5 of 5 stars

Inv Philosophy

5 of 5 stars

Performance

4 of 5 stars