Tata Mutual Fund will change the features of four schemes--Tata Medium Term Fund, Tata Long Term Debt Fund, Tata Ultra Short Term Fund and Tata Corporate Bond Fund, with effect from May 3, the mutual fund said in an addendum.
Accordingly, the revised features of Tata Long Term Debt Fund are as following:
| PARTICULARS | REVISED FEATURES | EXISTING FEATURES |
| Scheme Name | Tata Income Fund | Tata Long Term Debt Fund |
| Type | An open-ended medium term debt scheme investing in instruments with Macaulay duration of 4-7 years | An open-ended debt fund |
| Category | Medium to Long duration fund | Debt fund |
| Asset Allocation | --55-95 per cent in debt and debt related instruments of listed companies --40-95 per cent in debt and debt related instruments of unlisted companies --5-100 per cent in money market | --0-100 per cent in debt and money market instruments |
| Benchmark | CRISIL Medium to Long Term Debt Index | CRISIL Composite Bond Fund Index |
The revised features of Tata Medium Term Debt Fund are as following:
| PARTICULARS | REVISED FEATURES | EXISTING FEATURES |
| Category | Medium Duration Fund | Debt Scheme |
| Type | An open-ended medium term debt scheme investing in instruments with Macaulay duration of 3-4 years | An open-ended debt fund |
| Asset Allocation | --0-100 per cent in debt and money market instruments | --60-100 per cent in debt securities --0-40 per cent in money market instruments |
| Benchmark | CRISIL Medium Term Debt Index | CRISIL Composite Bond Fund Index |
The revised features of Tata Corporate Bond Fund are as following:
| PARTICULARS | REVISED FEATURES | EXISTING FEATURES |
| Category | Corporate Bond Fund | Debt Fund |
| Type | An open-ended debt scheme investing predominantly in AA+ and above rated corporate bonds | An open-ended debt scheme |
| Asset Allocation | --80-100 per cent in AA+ and above rated corporate debt securities across maturities --0-20 per cent in other debt and money market instruments | --80-100 per cent in corporate debt including securitised debt across maturities and ratings --0-20 per cent in other money market instruments |
| Benchmark | CRISIL Corporate Bond Fund Index | CRISIL Short Term Bond Fund Index |
The revised features of Tata Ultra Short Term Fund are as follows:
| PARTICULARS | REVISED FEATURES | EXISTING FEATURES |
| Scheme Name | Tata Treasury Advantage Fund | Tata Ultra Short Term Fund |
| Category | Low Duration Fund | Debt Fund |
| Type | An open-ended low duration scheme investing in instruments such that the Macaulay duration between 6-12 months | An open-ended debt scheme |
| Asset Allocation | --0-100 per cent in short term debt and money market instruments | --0-100 per cent in short term debt securities and securitised debt or in money market instruments and cash |
| Benchmark | CRISIL Low Duration Debt Index | CRISIL Liquid Fund Index |
Macaulay duration is the weighted average term to maturity of the cash flows from a bond. The weight of each cash flow is determined by dividing the present value of the cash flow by the price.
Unit holders who do not agree with the changes can avail exit option till May 2, without paying any exit load.
All other features of the schemes remain unchanged.
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