Publish Date:
Tata Mutual Fund has launched Tata Floating Rate Fund.
It is an open-ended debt scheme mandated to invest predominantly in floating rate instruments (including fixed rate instruments converted to floating rate exposures using swaps/ derivatives).
Accordingly, investment objective of the scheme is to generate income through investment primarily in floating rate debt instruments, fixed rate debt instruments swapped for floating rate returns and money market instruments.
However, there is no guarantee or assurance that the investment objective of the scheme will be achieved. The scheme doesn’t assure or guarantee any returns.
Tata Floating Rate Fund is mandated to invest 65% to 100% of its assets in Floating rate securities (including fixed rate securities converted to floating rate exposures using swaps / derivatives). 0% to 35% in Fixed rate debt securities, securitized debt, money market instruments. And 0% to 10% in Units issued by REITs & InvITs.
As per the Scheme Information Document (SID), Tata Floating Rate Fund proposes to invest predominantly in floating interest rate securities, fixed interest rate securities swapped for floating rate returns.
The scheme may also invest a part of the portfolio in fixed rate debt securities and money market instruments. The aim of the investment strategy will be to allocate the assets of the scheme between various fixed interest rate securities and floating interest rate securities and use derivatives like swaps and Forward Rate Agreements (FRA) effectively with the objective of achieving stable returns in the short as well as long term.
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 Floating Rate Fund’s performance will be benchmarked against its performance to CRISIL Ultra Short-Term Debt Index.
It will be managed by Mr Akhil Mittal.
The NFO opens for subscription on June 21, 2021 and closes on July 05, 2021. The scheme will reopen for continuous Sale and Repurchase from July 14, 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 (with Monthly/Quarterly/Periodic Payout of Income Distribution Cum Capital Withdrawal option and Monthly/Quarterly/Periodic Reinvestment of Income Distribution Cum Capital Withdrawal option).