What are pass-through certificates and how do they work?

On a Sunday morning, sipping a cup of coffee, Rahul and his wife Pooja were discussing their financial goals and, as a periodic activity, reviewing their investment portfolio; they always believed that a well-diversified investment portfolio is integral to financial planning and were seeking to diversify beyond traditional options such as stocks, bonds, real estate, gold, FDs, etc. PTCs as an alternative high-yield investment option for HNIs High Net Worth Individuals, Ultra HNIs, and institutional investors with high ticket sizes tend to look for alternate investment avenues with higher yields. Here are a few key features why HNIs and institutional investors can opt to invest in PTCs: Short-term investment avenue: Investors looking for a flexible short-term tenure of 6 - 12 months can park their surplus funds in Pass-Through Certificates. Better returns: Pass-through certificates have the potential to yield higher returns than conventional investment instruments such as fixed deposits, recurring deposits, debt mutual funds, etc., in similar risk categories. Reading the benefits, Rahul and Pooja decided to dive deeper and read the illustration below to know how technology is being leveraged to make these instruments investor friendly: Easy access to information: Investors can have access to transaction documents online like information memorandum, asset performance and characteristics Seamless Execution: All subscription-related documentation signing can be done online Instruments are issued digitally in dematerialized form, making them easier to transfer.