The Tata Floating Rate Fund is a debt scheme that primarily invests in floating rate instruments. The NFO will go live on Monday and closes on 5 July. We bring you all the details.
| Good to know
Floating rate instruments What is a benchmark reference rate? |
Investment objective
The fund aims to provide competitive and stable returns by adjusting to the evolving interest rate scenario. It will adopt a moderate risk strategy by investing in good quality (rated AA+/- or equivalent and above) floating-rate debt. The fund will also manage risk by having different tenures or duration papers.
Most importantly, with the inflation continuing to rise and economic activity gradually rebounding, Tata Floating Rate Fund is offering a debt portfolio for the upcoming rate cycle. If the Indian central bank decides to hike rates, the floating rate fund has the traits to take advantage of it.
In such a scenario, having coupon rates aligned with the changing interest scenario is extremely pivotal for investors. The fund provides much needed flexibility and diversity with respect to the interest-rate cycle.
Click here to invest in this NFO
Asset allocation
| Instrument | Allocation (% of total assets) | Risk profile | |
| Minimum | Maximum | ||
| Floating Rate instruments (including fixed-rate instruments converted to floating rate exposures using swaps/derivatives) | 65 | 100 | Low to medium |
| Fixed rate debt securities, securitized debt, money market instruments | 0 | 35 | Low to medium |
| Units issued by REITs & InvITs | 0 | 10 | Medium to high |
Scheme details
| Name | Tata Floating Rate Fund |
| Type | An open-ended debt scheme investing predominantly in floating rate instruments (including fixed rate instruments converted to floating rate exposures using swaps/ derivatives) |
| Category | Debt floater fund |
| Investment objective | The 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 assurance or guarantee that the investment objective of the scheme will be achieved. The scheme does not assure or guarantee any returns. |
| Benchmark | CRISIL Ultra Short Term Debt Index |
| Load Structure |
|
| Fund manager | Akhil Mittal |
| Options | Regular and Direct |
| Minimum application amount (during NFO) | ₹5,000 and in multiples of ₹1 thereafter |
| Additional application amount | ₹1,000 and in multiples of ₹1 thereafter |
Click here to invest in this NFO
| This product is suitable for investors who are seeking*: | Riskometer |
|
 |
*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 Asset Management Company Limited. To read the entire document, click here. Disclaimer RKSV Securities India Private Limited (ARN/Distributor - 107930; brand name Upstox) is the distributor of the mutual fund. Please consult your investment advisor before investing.
Mutual fund investments are subject to market risks, read all scheme related documents carefully.
Download the Upstox App Today