DNA of the fund and current positioning
How Money Market fund generated recent past returns – Recent history of yield movement
Why exposure to Money Market segment now – Expected near term yield movement
The investment objective is to generate returns with reasonable liquidity to the unitholders by investing in money market instruments
The fund endeavors to generate returns predominantly from accrual income through a portfolio of highly liquid money market securities along with some return generation from interest rate movements.
Current Portfolio Strategy*
The scheme has a maturity cap up to 12 months and can invest only in Money Market instruments viz. CPs, CDs, and T-Bills. Currently the scheme portfolio has an average maturity of ~8.17 months.
Currently the scheme portfolio has a Macaulay duration of 0.68 years. The scheme will endeavor to invest in high-quality assets and to maintain current allocations. The impact of market movement on the scheme is likely to be positive given also that it is positioned at the upper end of the duration band. Liquidity to remain in surplus hence incremental impact is likely to be positive.
*Based on current market conditions and may change in the future
Why Invest in the Tata Money Market Fund?
The Fund Manager expects the yield to fall over the coming financial year. The fall in yields is likely to have a positive impact on the portfolio. The Tata Money Market Fund allows the investor to invest in a high-quality liquid portfolio that is positioned to capture the expected fall in yields.
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