Tata Fixed Maturity Plan Series 61 Scheme D (91 days) - Direct-(G) NFO

Tata Fixed Maturity Plan (FMP) Series 61 Scheme D (91 days) is a close-ended debt fund designed to provide income or capital appreciation by investing primarily in fixed income instruments such as money market instruments, corporate bonds, and government securities. With a tenure of 91 days, this scheme aims to offer a relatively low-interest rate risk and moderate credit risk profile, making it suitable for investors seeking stable returns over the short term. The benchmark for this scheme is the CRISIL Liquid Debt AI Index.

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Tata Fixed Maturity Plan (FMP) Series 61 Scheme D (91 days) Objective & Growth

Scheme Objective

The Tata Fixed Maturity Plan Series 61 Scheme D (91 days) - Direct (G) objective of Tata FMP Series 61 Scheme D is to generate income and/or capital appreciation by investing in fixed income instruments with maturities aligning with the scheme's tenure. The maturity of all investments will be equal to or less than the maturity of the scheme. However, the scheme does not assure or guarantee any returns, and there is no assurance that the investment objective will be achieved.

Investment Strategies

The Tata Fixed Maturity Plan Series 61 Scheme D (91 days) - Direct (G) primarily invests in a portfolio of fixed income instruments, including money market instruments, corporate bonds, government securities, and tri-party repo/reverse repo in government securities. It seeks to generate returns by investing in quality papers while ensuring that the portfolio is aligned with the scheme’s maturity. The strategy emphasizes investing in well-managed companies with sound professional track records, growth prospects, and investment-grade debt securities. The scheme may also use derivative instruments, such as interest rate swaps and futures, for efficient portfolio management.

Strength of the Tata Fixed Maturity Plan Series 61 Scheme D (91 days) - Direct (G)

- Short-Term Focus: The scheme's short tenure (91 days) makes it ideal for investors seeking short-term, low-risk debt exposure.

- Low-Interest Rate Risk: Given the close-ended structure and the strategy of investing in securities with maturities aligning with the scheme's tenure, interest rate risk is minimized.

- Moderate Credit Risk: The focus on investment-grade corporate bonds and government securities ensures that the credit risk remains manageable.

- Active Risk Management: The scheme employs active risk controls, including regular performance reviews and credit assessments.

Risk Associated with the NFO

- Liquidity Risk: Due to the close-ended structure, liquidity may be restricted, and the secondary market may not always offer attractive exit options.

- Credit Risk: Investing in corporate bonds may involve credit risk, where the issuer may default on interest or principal payments.

- Interest Rate Risk: Although mitigated by the close-ended structure, changes in interest rates could impact the NAV and market value of the scheme’s investments.

- Market Volatility: Economic factors, political changes, or market volatility can affect the performance of the scheme.

Tata FMP 61 Scheme D (91 days) - Direct (G) Risk Mitigation Strategy

- Liquidity Risk: The scheme invests in quality paper and focuses on maintaining exposure in line with the scheme’s tenure to minimize liquidity concerns.

- Credit Risk: A dedicated in-house team conducts rigorous credit appraisals, and issuer-wise exposure limits are maintained. The portfolio is regularly reviewed by the Board of the AMC.

- Interest Rate Risk: Interest rate risk is mitigated through a well-structured investment strategy, with all securities maturing within the scheme’s tenure.

- Performance Review: Regular reviews of the scheme’s performance are conducted against its benchmark index to ensure that the investment objectives are met.

Who Should Invest in Tata FMP 61 Scheme D (91 days) - Direct (G)?

This Tata FMP 61 Scheme D (91 days) - Direct (G) is suitable for investors who seek:

- Short-term investments with low-interest rate risk.

- A moderate risk profile with a focus on stable returns.

- Conservative investors looking to park their money in relatively safe, income-generating debt instruments for a fixed period.

- Investors looking to diversify their portfolios with a low-risk, fixed-income option in a close-ended structure. 

Investors should also be aware of the inherent risks and evaluate whether this scheme aligns with their investment goals, risk tolerance, and time horizon.