Roles of each Instrument in ILTS

The long-term strategy discussed in the transcription utilizes various financial instruments to optimize exposure, manage risk, and enhance returns. The main instruments used are Nifty Bees, Nifty Futures, Synthetic Futures, Put Options, and Debt Funds. Nifty Bees serves as the foundational investment, Nifty Futures are used to maximize exposure, Synthetic Futures eliminate daily mark-to-market payments, Put Options are purchased to hedge against downside risk, and Debt Funds are used to leverage interest rate differentials and diversify risk. The strategy aims to provide a balanced and diversified portfolio. In the index long-term strategy, various financial instruments are strategically employed to optimize exposure, manage risk, and enhance returns. Here's a detailed breakdown of the roles of each instrument within this strategy. Nifty Bees Purpose, Nifty Bees serves as the foundational investment vehicle, providing exposure to the Nifty 50 Index, which represents 50 prominent stocks on the National Stock Exchange of India, NSE. Allocation, we allocate 30% of the total exposure value to Nifty Bees, reflecting a commitment to passive investing and capturing the performance of the broader market. Nifty Futures Pledging Nifty Bees, to maximize exposure and facilitate additional investment, Nifty Bees is pledged as collateral. Futures Purchase, utilizing the margin obtained from the pledged Nifty Bees, we invest in Nifty Futures, with the value of the futures position equivalent to 70% of the total exposure value. Synthetic Futures, Synthetic Futures are strategically chosen to eliminate daily mark-to-market, MTM, payments, streamlining the management of the position and reducing short-term volatility impacts. Put Options Hedging Strategy, to mitigate potential downside risk associated with the Nifty Bees and Nifty Futures positions, put options are purchased. Comprehensive Risk Management, by incorporating put options, the strategy aims to protect the overall portfolio from adverse market movements, providing a level of insurance against potential losses. Debt Funds Objective, to leverage interest rate differentials and benefit from interest rate arbitrage. Investment Allocation, an amount equivalent to the exposure of Nifty Futures is invested in debt funds. This allocation allows for capitalizing on the potential returns generated by the debt market while maintaining a balanced and diversified portfolio. Risk Diversification, debt funds add an element of risk diversification to the overall strategy, as they are less influenced by equity market fluctuations and can provide stability to the portfolio. Key Considerations The strategy combines the growth