Working Capital Management is crucial. Yet at times we tend to err on the side of the caution when it comes to managing money over weekends. We prefer to leave it idle over weekends.

Presenting the Grindlays Cash Fund (GCF) - an open-ended income scheme with high liquidity. A scheme that invests in money market instruments like Treasury Bills, Call Money, Repos, Short- term Corporate Debentures, Commercial Papers, Certificate of Deposits, etc. that provide a high level of stability and easy liquidity with no exposure whatsoever to equities.

Friday

• Invest on a Friday before the High Value cut-off time in your region.
• And in case you require this money back on a Monday then submit the purchase form along with the dated redemption request.

Monday

• If you have a bank account with any of the ten banks* that we have arrangements with, then you get a direct credit into your bank account, for you to use on a Monday. If not, then you get a High Value cheque well within the High Value cut-off time.
• This money will help you earn returns from Friday-Sunday.

*ABN Amro, Citibank, Deutsche Bank, HSBC, HDFC Bank, ICICI Bank, IDBI Bank, Standard Chartered Bank, UTI Bank and Kotak Mahindra Bank.

If you don't require the money on the following Monday, then just submit your redemption request any time before 10.00 a.m. on any business day at our offices or up to office hours on the previous business day. You then get the proceeds within the High Value cut-off time either in the form of a cheque or a direct credit (if you have a bank account with any of the ten banks that we currently have a relationship with) within same day's High Value cut-off time.

If one were to deploy money for 3 days over an entire year, here’s what one could have potentially earned.

Money assumed to be invested for 3 days over 52 weeks. Rate of return assumed to be 3.76% p.a. based on annualised post tax returns for last 7 days (As on January 05,2005 under GCF(Growth). Assumption based on past performance.Past performance does not guarantee future returns).

The GCF is also very tax efficient. It comes with a Daily (compulsory reinvestment), Weekly (compulsory reinvestment), Monthly and Bi-monthly Dividend Options. Each day's (and each week’s in the Weekly option) gains are declared in the form of dividends and then reinvested after netting it off against the Dividend Distribution Tax (currently 20.91%). This dividend is completely tax free. So the net tax incidence is just 20.91% as compared to 36.5925%^^ for comparable non mutual fund options.

Quite handsomely, as you would notice from the table below:-

Past performance does not guarantee future returns. ^^ Tax for corporates is assumed at 36.5925%. Investment in GCF is assumed to be in the Dividend option where the Dividend @ Distribution Tax incidence is 20.91%. Prevalent SBI Term Deposit Rates as on Jan 5, ‘05.