Home >Mutual Funds >News >Tata Mutual Fund launches Tata Floating Rate Fund. Details here

Tata Mutual Fund announced the launch of Tata Floating Rate Fund - an open-ended Debt Scheme predominantly investing in floating rate instruments (including fixed rate instruments converted to floating rate exposures using swaps/derivatives).

The New Fund Offer (NFO) opens on June 21, 2021 and will close on July 5, 2021. The Fund will endeavour to generate relatively stable returns through a portfolio comprising substantially of floating rate debt, fixed rate debt instruments swapped for floating rate returns and money market instruments. The fund aims to invest a minimum of 65% of its corpus in floating rate securities issued by corporates or the government or convert fixed interest securities to floating via derivatives, it said in a statement.

Floating rate fund means that the fund's broader direction moves in tandem with interest rate movement.

Floating rate fund invests in either floating rate instruments (instruments whose yields change with change in benchmark rates) or in fixed coupon instruments which are converted to floating rate by using swaps.

Akhil Mittal, Senior Fund Manager at Tata Asset Management said, “We have launched our new Fund, Tata Floating Rate Fund in the debt category to suit the upcoming rate cycle and would provide a good alternative to other debt funds / products".

Type of Scheme: An open-ended debt scheme investing predominantly in floating rate instruments (including fixed rate instruments converted to floating rate exposures using swaps/ derivatives)

Fund Manager: Akhil Mittal

Benchmark: CRISIL Ultra Short Term Debt Index

Min. Investment Amount: Rs. 5,000/- and in multiple of Re.1/- thereafter

Additional Investment: 1,000/- and in multiple of Re 1/- thereafter.

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