Tata Floating Rate Fund NFO - Investment Objective, Returns, Taxation, SIP

Tata Floating Rate Fund NFO

Tata Mutual Fund has announced the launch of the Tata Floating Rate Fund. The fund is an open-ended debt scheme that will be predominantly investing in floating rate instruments as per the scheme documents.

The New Fund Offer (NFO) starts on 21st June 2021 and will close on 5th July 2021.

Investment Objective 

The investment objective of the scheme is to provide income to investors by investing in floating rate instruments, fixed-rate instruments swapped for floating rate & other money market instruments. 

Features 

Some of the features of floating rate funds:

• Stability: These funds offer relatively stable returns as compared to duration-based funds.
• Flexibility: These funds have the flexibility to invest in any credit or maturity spectrum. They don't have any Macaulay Duration limit at the portfolio level.
• Suitability: These funds are suitable for short-term investments & in rising interest rate scenarios.

Why invest in Tata Floating Rate Fund NFO?

Here are some of the reasons why you should invest in this fund:

• These funds provide an opportunity to benefit from a rising interest rate scenario as the underlying coupon payments are aligned with the changing interest rates
• The interest rate sensitivity of floating-rate bonds or instruments is lower as compared to fixed-rate bonds.
• Offers a good diversification of the portfolio by providing an option to diversify the fixed-rate securities portfolio of an investor & hence reduce overall risks in the portfolio.

Who Should Invest?

This scheme is suitable for investors who are -

• Looking for relatively stable yields in a rising interest rate situation
• Looking for diversification of fixed-rate investments
• Interested in regular income by investments in a portfolio of floating-rate securities

Asset Allocation Pattern

About the scheme

SIP Details