Tata Mutual Fund announces the launch of Tata CRISIL-IBX GILT Index – April 2026 Index Fund, an open-ended Target Maturity Index Fund investing in constituents of CRISIL-IBX Gilt Index – April 2026.
A Scheme whose Interest Rate Risk gets mitigated with hold to maturity approach and runs no Credit Risk. The New Fund Offer (NFO) opens on 23rd September 2022 and will close on 28th September 2022.
Tata CRISIL-IBX GILT Index – April 2026 Index Fund would provide returns corresponding to the securities’ total returns as represented by the underlying index, subject to tracking error.
The fund will invest in G-Sec papers with 95%-100% allocation and will be benchmarked against CRISIL-IBX Gilt Index – April 2026 (TRI).
“Over the past 1 year, yield levels have risen on account of rate hikes done, excess liquidity withdrawn, and economy coming out of Covid shock. Currently, within G secs, 3-4 yrs segment may be looked upto. The spread between 1 yr and 3 / 3.5 yrs is more than 60 bps making that part of the yield curve steep, while a flatter yield curve after that. The spread of 3.5 years of security over ten years is around 15 bps. Going into the RBI policy on 30 Sept., markets may price in another large rate hike by RBI, in line with policy rate actions of global Central Banks”.Amit Somani, senior fund manager-fixed income at Tata Asset Management said,
The exit load is 0.25% of the applicable NAV, if redeemed on or before 30 days from the date of allotment.
The minimum subscription amount is Rs. 5,000 per application, multiples of Re 1 after that. The minimum application amount is applicable for switch-ins as well.
This product is suitable for investors who are seeking:
• Income over the target maturity period
• Investing in constituents similar to composition of CRISIL-IBX Gilt Index – April 2026