Publish Date:
Tata Mutual Fund has launched Tata Corporate Bond Fund.
It is an open-ended debt scheme predominantly investing in AA+ and above rated corporate bond instruments, with flexibility of any Macaulay Duration and relatively high interest rate risk and moderate credit risk.
The investment objective of the scheme is to provide income and capital appreciation by investing predominantly in AA+ and above rated corporate bonds. The scheme does not guarantee or assure any returns.
Tata Corporate Bond Fund is mandated to invest 80% to 100% of its assets in Corporate Debt instruments (including securitised debt) across maturities and rated AA+ and above (AA+ and above rated corporate debt instruments includes debt securities/instruments which are issued by entities other than Central or State Government and which are rated AA+ (or equivalent rating) and above).
Corporate Debt includes short term and long term debt securities issued by entities such as companies, banks, financial institutions and other body corporate (both public and private sector undertakings). Such securities include commercial papers, certificate of deposits, bonds, debentures, notes, strips etc.
Upto 20% of the funds portfolio can be held in Other Debt & Money Market Instruments. It can also invest upto 10% of its assets in Units issued by REITs & InvITs.
As per the Scheme Information Document, Tata Corporate Bond Fund would seek to invest at least 80% of the portfolios in AA+ and above rated corporate bonds and balance in other money market instruments. The Scheme will seek opportunities across the credit curve and will endeavor to take benefit from superior yield available from time to time.
Tata Corporate Bond Fund will follow an active investment strategy within the overall mandate, depending on opportunities available at various points in time. The security will be identified based on various parameters such as issuer’s credit rating history, financial track record of the issuer, corporate governance track record of the issuer, liquidity of the security, maturity of the security, interest rate scenario etc.
Tata Corporate Bond Fund’s performance will be benchmarked against CRISIL Corporate Bond Composite Index.
It will be managed by Mr Abhishek Sonthalia.
The NFO opens for subscription on November 22, 2021 and closes on November 29, 2021. The scheme will re-open for continuous Sale and Repurchase from December 07, 2021.
The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.
The fund offers Regular Plan and Direct Plan having Growth Option and Dividend Option (Dividend Re-investment and Dividend Pay-out facilities).