Tata Mutual Fund Launches CRISIL-IBX GILT Index Fund: The New Fund Offering (NFO) opened for subscription on September 23, 2022 and will close on September 28, 2022. Here are more details
Tata Mutual Fund has announced the launch of Tata CRISIL-IBX GILT Index – April 2026 Index Fund, an open target maturity index fund investing in constituents of CRISIL-IBX Gilt Index – April 2026. The New Fund Offering (NFO) has open for subscription on September 23, 2022 and will close on September 28, 2022.
Tata CRISIL-IBX GILT Index – April 2026 Index Fund would provide returns equal to the total returns of the securities represented by the underlying index, subject to tracking error. The fund will invest in G-Sec papers with an allocation of 95-100% and will be benchmarked against the CRISIL-IBX Gilt Index – April 2026 (TRI), Tata Mutual Fund said in a statement on Friday.
Amit Somani is the fund manager of NFO.
Commenting on the launch of the fund, Somani, Senior Fixed Income Fund Manager at Tata Asset Management, said: “Over the past year, yield levels have increased due to rate hikes being made, excess cash withdrawn and of the economy emerging from COVID Shock -19. Currently in G seconds, the 3-4 year segment can be researched. The spread between 1 year and 3/3.5 years is more than 60 basis points, which makes this part of the steep yield curve, while a flatter yield curve after the 3.5-year security spread over 10 years is about 15 basis points. on September 30, markets could price in another big rate hike by the RBI, in line with the actions of global central banks on policy rates.”
The exit charge is 0.25% of the applicable net asset value, if repaid no later than 30 days from the date of grant. The minimum subscription amount is Rs 5,000 per application and in multiples of Re 1 thereafter. The minimum request amount also applies to transfers.