Daulat Launches Cash+ - Its New and Innovative Cash-Management Solutions for SMEs and Emerging Corporates in India

Daulat has announced the launch of Cash+ – its new and innovative cash-management solutions for SMEs/emerging corporates in India. Companies today keep substantial sums of their short-term money (<12 months) in a current account or fixed deposit because they are often not aware of better alternatives. Cash+ aims to fix that by providing customized, liquidity products that can help the backbone of our economy – MSMEs – save and invest better.

Portfolio
Cash+ invests in debt/arbitrage funds that hold a portfolio of high-quality, short-term securities like certificates of deposits, commercial papers and bonds issued by AAA-rated issuers like central/state government.

Risk
Since Cash+ portfolios are investment products investing in debt securities, it is primarily exposed to two key risks a) interest rate risk and b) credit risk. By investing only in shorter duration funds i.e., Macaulay duration of <6 months and the highest-rated instruments, these portfolios are able to effectively mitigate those risks.

Liquidity
Liquidity is at the heart of Cash+ portfolios. The money is free of any lock-in period, and pre-mature withdrawal penalties and is instantly redeemable with money credited directly into the bank account in T+1 working day.

Returns
The returns provided by Cash+ portfolios are a function of risk appetite and investing time horizon. In the current interest-rate regime, these portfolios are able to provide 7-8% returns p.a. for a recommended investment period of 3-12 months.

Varun Fatehpuria, Founder & CEO, Daulat, said, “Small and Medium enterprises in our country lack the access to resources and systems that can help them optimize their short-term, treasury money better. Cash+ was designed to serve the needs of over 8 million registered MSMEs who often have to suffice with earning low yields by keeping their money in a current account and fixed deposit. By investing in a carefully selected portfolio of best-in-class funds, Cash+ is able to offer higher returns while being safe and liquid at the same time.

The benefits of investing in market-linked products cannot be an exclusive service available to a select few. If we want to truly create a flourishing $5tn economy, then we need to support our MSMEs and ensure that they can increase their efficiency and earnings simultaneously.”