Treasury and Investment Consultancy
- We focus the approach on ideal cash utilization depending on the organization’s working capital requirements and cash projections. We help understand company’s needs and advise on efficient fund management and banking structures supported by a system of strong internal controls and regular reporting.
- We currently manage a total portfolio of over Rs. 1,000 crores for our esteemed clients with the prime focus on returns of investment and an excellent service support and management.
- Our team carefully analyses the existing investment portfolios for companies and advises on restructuring opportunities supported by a careful understanding of the existing market trends and viable investment options available.
- Additionally, we suggest on suitable investment alternatives available for companies, keeping in view the investment mandate and credit risks for the company, for investments in liquid funds, short term deposits, bank and institutional fixed deposits, debt & equity market.
Parameters of a Viable Investment Strategy
INVESTMENT ALTERNATIVES – SHORT TERM
In compliance to the organization’s investment objectives of maximum safety while deriving the highest returns, We have following investment recommendations;
- Liquid Funds come under the category of debt schemes offered by Mutual Funds. The basic objective of a liquid fund is to manage the short term cash surplus of investors and provide optimal returns with low risk and high liquidity.
- Fixed deposits are the most stable and risk-free fixed return instruments available in the market.
- The operation of these deposits is highly convenient and the instructions are generally effected buy the financial institutions on the same day if instructed within the normal banking hours.
INVESTMENT ALTERNATIVES – MEDIUM & LONG TERM
In compliance to the organization’s investment objectives of maximum safety while deriving the highest returns, we suggest and deal in the following investment alternatives:
- Fixed Deposit with Companies/Institutions
- Corporate Bonds/NCDs
- Tax Free Bonds
- Nationalized Bank Perpetual Bonds
- Mutual Funds
The deposit placed by investors with companies for a fixed term carrying a prescribed rate of interest is called Company Fixed Deposit. Financial institutions and Non-Banking Finance Companies (NBFCs) also accept such deposits. Deposits thus mobilized are governed by the Companies Act under Section 58A.
Company FDs are preferred over bank FDs for their higher interest rates. Corporate FDs are instruments used by companies to borrow money from small investors.
|Bank/Institution||Rate of Interest|
|1 Year||15/18 Months|
|Mahindra Financial Services||8.45%||8.45%|
|LIC Housing Finance||8.25%||8.25%|
|PNB Housing Finance||8.00%||8.05%|
Bank Fixed Deposits are the most stable and risk-free fixed return instruments available in the market.
The operation of these deposits is highly convenient and the instructions are generally effected buy the bank on the same day if instructed within the normal banking hours.
Tax free bonds have emerged as highly popular investment options among investors due to the taxation benefit that they offer. These bonds, generally issued by Government backed PSU’s, are exempt from taxation on the interest income received from such instruments under the Income Tax Act, 1961. The key features of these bonds are as highlighted below:
- The income from these bonds is exempt from tax.
- These bonds generally come with long tenures of 10, 15 and/or 20 years, however, these bonds can be traded on the listed exchange if applied in demat mode.
- There is no Cap on investment made in these bonds.
- The interest offered is benchmarked to the Government security of similar maturity, subject to conditions laid down by CBDT.
We recommend investing in AAA tax free issues by entities such as REC, NHAI, NHB, IRFC, IIFCL, etc. which are currently yielding 6.20% indicatively post tax.
Banks raise the money to meet their tier-1 capital needs as per Basel-3 norms. Banks with lower capital adequacy ratio have been issuing perpetual bonds at rates as high as 11% and more.
These are closed ended debt schemes with a fixed maturity date and they invest in debt & money market instruments maturing on or before the date of the maturity of the scheme. The key features of FMP’s are as highlighted below:
- They are considered low risk as FMPs choose instruments in such a way that the tenure of the underlying investment coincides with that of the FMP.
- FMPs held for over one year can deliver superior post-tax returns as a result of indexation benefit.
- We are an AMFI registered mutual fund distributer having more than Rs.250 crores AUM across a diverse clientele including Retail, High Net-worth Investors and Corporate Institutions.
- We have an in house R&D Team which does extensive research on the recommended funds and structured portfolios.
- We select funds on the basis of their AUM, credit worthiness, underlying instruments and the historic returns. We operate with all top-rated AMC’s of India including HDFC Mutual Fund, ICICI Prudential, NIPPON Mutual Fund, SBI Mutual Fund, UTI Mutual Fund and Axis Mutual Fund.
COMPETENCE, CONFIDENTIALITY AND INDEPENDENCE
The team at Brivan Consultants focuses on ensuring complete satisfaction to its clients. We understand that the treasury operations of any company are highly sensitive and we ensure complete confidentiality of the information we have access to, restricting its use to the purpose intended for.
Our treasury management operations are strictly based on client mandates and guidelines, risk appetite and preferences focussed on maximizing returns.
This has been a result of the core objective at Brivan – commitment to deliver quality services and add value to the client’s business.