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Tata Corporate Bond Fund: NFO closes on 29th November 2021

Tata Corporate Bond Fund is an open-ended debt scheme that will predominantly invest in AA+ and above rated corporate bonds, with flexibility of any Macaulay Duration, relatively high interest-rate risk and moderate credit risk.

Good to know

What is a bond fund?

A bond fund, also referred to as a debt fund, is a pooled investment vehicle that invests primarily in bonds (government, municipal, corporate, convertible) and other debt instruments, such as mortgage-backed securities (MBS). The primary goal of a bond fund is often that of generating monthly income for investors.

Investment objective

The investment objective of the scheme is to generate returns over the short to medium term by investing predominantly in corporate debt 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.

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Asset allocation

Instruments Indicative Allocations

(% of net assets)

Risk profile
Minimum Maximum
Corporate debt instruments (including securitised debt) across maturities and ratings* 80 100 Medium
Other debt & money market instruments 0 20 Low to medium
Units issued by REITs & InvITs # 0 10 Medium to high

*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. This includes short term and long term debt securities issued by entities such as companies, banks, financial institutions and other corporate bodies (both public and private sector undertakings). Such securities include commercial papers, certificate of deposits, bonds, debentures, notes, strips etc.

#A mutual fund may invest in the units of REITs and InvITs subject to the following: (a) No mutual fund under all its schemes shall own more than 10% of units issued by a single issuer of REIT and InvIT; and (b) The scheme shall not invest – i. more than 10% of its NAV in the units of REIT and InvIT; and ii. more than 5% of its NAV in the units of REIT and InvIT issued by a single issuer. Due to market conditions, the AMC may invest beyond the range set out above. Such deviations shall normally be for a short term purpose only for defensive considerations and such deviations shall be subjected to a 30 days rebalancing period.

Scheme details

Name Tata Corporate Bond Fund
Type An open-ended debt scheme predominantly investing in AA+ & above rated corporate bonds, with flexibility of any Macaulay Duration & relatively high interest rate risk & moderate credit risk.
Category Corporate bond fund
Benchmark CRISIL Corporate Bond Composite Index
Entry/exit load Entry Load (During NFO): N.A.

Exit Load: NIL

Fund Manager Mr Abhishek Sonthalia
Minimum application amount ₹5,000
Expense ratio Upto 2.00%*

* Excluding Goods & Services Tax on investment and advisory fees

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This product is suitable for investors who are seeking*: Riskometer
- Regular income for the medium term.

- Predominant investment in corporate debt securities

*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

Note: The above information has been sourced from the Scheme Information Document provided by Tata Mutual Fund. To read the entire document, click here.

Disclaimer: The above article is purely academic in nature and aims to provide knowledge about basic trading concepts & should not be construed as an opinion or advice to invest or trade. RKSV Securities India Private Limited (brand name Upstox) is the distributor of the mutual fund. Mutual fund investments are subject to market risks; please read all the related documents and/or consult your investment advisor before investing. Past performance of an investment asset does not guarantee future returns.

Mutual fund investments are subject to market risks, read all scheme related documents carefully.

Categories: NFO