Tata Corporate Bond Fund (TCBF) is an open-ended debt scheme provided by Tata Mutual Fund. The investment objective of the scheme is to generate returns over 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.
Tata Mutual Fund has decided to reorganize the portfolio of its Tata Corporate Bond Fund scheme reducing the risks and lowering the maturities. The scheme invests 80 to 100 percent of the net assets in corporate debt (including securitized debt) across maturities and ratings with the medium risk profile while it invests 0 to 20 percent of net assets in other money market instruments with the low-risk profile.
TCBF scheme is managed by one of the fund managers of Tata Mutual Fund, Amit Somani. He is a B.Com, PGDBM and CFA Charter-holder with over 12 years of experience. He said regarding this scheme, “With interest rate policy stance changing to neutral from accommodative, yields will have stable to rising bias. In such environment, Tata Corporate Bond Fund is positioned around lower duration spectrum with a focus on accrual as well as credit quality.”
This TCBF scheme has returned 7.59 % or Rs. 10,759 on the investment of Rs. 10,000 as on March 31, 2017, in the duration of one year. It also returned 8.19 % and 8.51 % in 3 and 5 years respectively with inception date to be 13th July 2017.
According to the official notification released by Tata Mutual Funds, the scheme may invest up to 50% of the scheme’s debt exposure in domestic securitized debt. It will not invest in Government of India dated securities and State Development Loans. The scheme may engage in short selling of securities in accordance with the framework relating to short selling and securities lending and borrowing specified by SEBI.
Not more than the 20% of the net assets of the scheme can be deployed in stock lending. The scheme would limit its exposure, with regards to security lending, for a single intermediary, to the extent of 5% of the total net assets of the scheme at the time of lending.
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