Front Cover Page - Tata Mutual Fund

TATA FLOATER FUND
II. INFORMATION ABOUT THE SCHEME
PRODUCT LABLE
This product is suitable for investors who are seeking*:
Regular Fixed Income for Short Term
Investment in Debt / Money Market Instruments / Government Securities.
The scheme is classified as Low Risk
(BLUE). Investors understand that their principal will be at low risk.
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them
Risk is represented as:
(Brown)Investors understand that their principal will be at high risk.
(Yellow)Investors understand that their principal will be at medium risk.
B(Blue)Investors understand that their principal will be at low risk.
A. TYPE OF THE SCHEME
An open ended debt scheme.
B. INVESTMENT OBJECTIVE OF THE SCHEME
The investment objective of the scheme is to generate stable returns with a low interest rate risk strategy by creating a portfolio that is
predominantly invested in good quality floating rate debt instruments, money market instruments and in fixed rate debt instruments which can also
be swapped for floating rate returns.
There can be no assurance that the investment objective of the Scheme will be realised.
C. ASSET ALLOCATION AND RISK PROFILE
Under normal circumstances, funds of the Scheme, shall (after providing for all ongoing expenses) generally be invested / the indicative asset
allocation shall be as follows considering the objective of the Scheme:
Instruments
Floating Rate Debt instruments* and money market
instruments (including securitised debt)
Indicative allocations (% of Net
Assets)
Risk Profile
Minimum Upto Maximum Upto High/Medium/Low
65 100 Low to Medium
Fixed Rate Debt Securities (including securitised debt) 0 35 Low to Medium
* Floating rate debt instruments include fixed rate instruments swapped for floating rate returns.
Investment in securitised debt will be restricted to a maximum of 50% of the net assets of the scheme.
No investment will be made in foreign securitised debt.
Investment in Derivatives shall be in compliance with guidelines of SEBI including SEBI circular no. Cir/IMD/DF/11/2010 dated August 18, 2010.
The scheme net assets will have a maximum derivative net position of 50% of the net assets of the scheme. Investment in derivative instruments
may be done for hedging and Portfolio balancing. The cumulative gross exposure through debt securities and debt derivative positions should not
exceed 100% of the net assets of the scheme. Cash or cash equivalents with residual maturity of less than 91 days may be treated as not creating
any exposure.
Not more than 25% of the net assets of the scheme shall be deployed in securities lending. The Scheme would limit its exposure, with regards to
securities lending, for a single intermediary, to the extent of 5% of the total net assets of the scheme at the time of lending.
The AMC may from time to time for a short term period on defensive consideration invest upto 100% of the funds available in Money Market
Instruments, the primary motive being to protect the Net Asset Value of the Scheme and protect unitholders interests so also to earn reasonable
returns on liquid funds maintained for redemption/repurchase of units.
The Trustee Company may from time to time, for a short term period on defensive consideration, modify / alter the investment pattern / asset
allocation, the intent being to protect the Net Asset Value of the Scheme and Unitholders interests, without seeking consent of the unitholders.
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