Tata Mutual Fund launches new fund offer of Tata Floating Rate Fund
Rising inflation has given rise to the hopes of rise in interest rates. That has made many bond fund investors lose their sleep as steep rise may lead to losses on long term bonds. To overcome this situation more investors are looking to invest in short duration bond funds and floating rate bond funds. Tata Mutual Fund is the latest to offer floating rate fund. The new fund offer of Tata Floating Rate Fund (TFR) opened today.
The fund aims to invest in either floating rate bonds – wherein the investors will received coupon payments linked to an underlying interest rate index, or it can invest in fixed coupon paying bonds and then swap it with floating rate arrangements. Akhil Mittal, Senior Fund Manager, Tata Asset Management company will manage the TFR. Crisil Ultra Short Term Debt Index will be the benchmark of TFR. There is no entry and exit load in this scheme for investments made in new fund offer.
There are already 10 floating rate schemes which put together manage assets worth Rs 69,730 crore.
The new fund offer will close on July 5, 2021.
Debt: Floater
| Fund Name | Expense Ratio (%) | 1 Yr Ret (%) | Net Assets (Cr) |
| Aditya Birla Sun Life Floating Rate Fund | 0.38 | 5.71 | 14,324.00 |
| DSP Floater Fund – Regular Plan | 0.56 | — | 1,800.00 |
| Franklin India Floating Rate Fund | 0.97 | 4.83 | 313.00 |
| HDFC Floating Rate Debt Fund | 0.48 | 6.96 | 17250 |
| ICICI Prudential Floating Interest Fund | 1.32 | 7.32 | 12113 |
| IDFC Floating Rate Fund – Regular Plan | 0.75 | — | 887.00 |
| Kotak Floating Rate Fund – Regular Plan | 0.62 | 7.83 | 4466 |
| Nippon India Floating Rate Fund | 0.57 | 7.04 | 15676 |
| SBI Floating Rate Debt Fund – Regular Plan | 0.45 | — | 126.00 |
| Tata Floating Rate Fund – Regular Plan | — | — | — |
| UTI Floater Fund – Regular Plan | 1.28 | 4.43 | 2775 |
| Source: Value Research |