The new fund offer (NFO) opened for subscription on September 15 and will close on September 22. The scheme will reopen for continuous sale and repurchase from September 29.
The fund will invest in securities issued by financial services companies, including banks, non-banking financial companies (NBFCs), housing finance companies and financial institutions. Under normal circumstances, 95-100% of its net assets will be invested in index constituents such as certificates of deposit, commercial papers and corporate bonds, with the remaining portion in cash and money market instruments.
The underlying index is restricted to AAA-rated financial services issuers. Its methodology caps exposure at 15% per issuer and 25% at the group level, with the index rebalanced quarterly, according to the fund house.
The scheme is designed to operate in the 3-6 month maturity segment. Tata Asset Management said the strategy seeks to capture accrual income and potential gains as securities mature or “roll down” the short-term yield curve.
Amit Somani, Deputy Head-Fixed Income at Tata Asset Management, said the fund is aimed at short-term surplus deployment while maintaining exposure to AAA-rated financial issuers and limiting duration and credit risks.
The scheme has been assigned a “Low to Moderate” risk level. The minimum investment during the NFO is ₹5,000 and in multiples of ₹1 thereafter. An exit load of 0.25% will apply if units are redeemed or switched out within 30 days of allotment, with no exit load thereafter.
First Published: Sept 15, 2026 4:10 PM IST
