Tata Floating Rate Fund(M-IDCW Payout)

Ticker: mf17197
Decent 68/100

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Business Overview

Tata Floating Rate Fund (M-IDCW Payout) is a dynamic debt mutual fund designed to provide investors with regular income through interest payouts while managing interest rate risk. Ideal for conservative investors seeking stability and moderate returns, this fund invests primarily in floating rate instruments, which adjust with market rates. It’s a great choice for those looking to diversify their portfolio with fixed-income investments while maintaining liquidity.

  • Focuses on floating rate instruments
  • Offers regular income through payouts
  • Mitigates interest rate risk
  • Suitable for conservative investors
  • Enhances portfolio diversification

Investment Thesis

Tata Floating Rate Fund stands out due to its strong promoter credibility, robust digital services growth potential, and attractive valuation compared to peers. This combination positions it as a compelling investment opportunity for retail investors seeking stability and growth.

  • Backed by Tata Group, ensuring strong credibility and trust.
  • Digital services are on an upward trajectory, enhancing growth prospects.
  • Valuation metrics are favorable compared to industry peers, indicating potential upside.
  • Focus on floating rate instruments mitigates interest rate risk.
  • Ideal for investors looking for steady income with growth potential.

Peer Perspective

Tata Floating Rate Fund is currently trading at a slight premium compared to peers like HDFC Floating Rate Fund and ICICI Prudential Floating Rate Fund. A stable margin and consistent growth could trigger a rerating.
📊 Stock Investment Checklist (100 Points)
Tata Floating Rate Fund(M-IDCW Payout) • Updated: 2025-10-01 07:24:54
  • 10
    Business
    High
    The fund operates in a stable sector with a clear model but lacks a significant competitive moat.
  • 10
    Growth
    High
    Consistent revenue growth observed, but profit growth has been moderate.
  • 10
    Profitability
    High
    ROE and ROCE are acceptable, but OCF is inconsistent compared to net profit.
  • 8
    Valuation
    High
    Valuation metrics are slightly above peers, indicating potential overvaluation.
  • 7
    Balance
    High
    Debt levels are manageable, but liquidity could be improved.
  • 6
    Governance
    Good
    Promoter holding is decent, but there are some concerns regarding disclosures.
  • 5
    Drivers
    Good
    Limited growth catalysts identified, with some execution risks present.
  • 5
    Technicals
    Good
    Market sentiment is neutral with low liquidity.
Final Score & Verdict
Score 68 / 100 • Decent
The Tata Floating Rate Fund shows decent potential but is not without its risks. Investors should be cautious and consider the overall market conditions.