The Tata Ultra Short Term Fund (W-IDCW Payout) is a debt mutual fund designed for investors seeking stable returns with lower risk. Ideal for conservative investors or those looking to park their funds for a short duration, this fund aims to provide liquidity while generating income. It focuses on high-quality debt instruments, ensuring capital preservation and consistent payouts. With a professional management team, this fund is a reliable choice for those prioritizing safety in their investment journey.

Designed for conservative investors
Focuses on high-quality debt instruments
Offers liquidity and stable returns
Managed by experienced professionals
Ideal for short-term investment needs

Investment Thesis

Tata Ultra Short Term Fund stands out due to its strong promoter credibility and robust financial management. With the growing demand for digital services, this fund is well-positioned for growth. Its attractive valuation compared to peers makes it a compelling choice for investors seeking stability and returns.

Backed by Tata Group, ensuring trust and reliability.
Strong growth potential in digital services sector.
Attractive valuation compared to similar funds.
Consistent performance track record enhances investor confidence.
Diversified portfolio mitigates risk while maximizing returns.

Opportunity vs Risk

Opportunities

Stable returns in low-interest environment
Diversification for conservative investors
Potential for capital preservation
Tax-efficient investment option

Risks ⚠️

Interest rate fluctuations impact returns
Market volatility affects fund performance
Limited growth potential compared to equities
Credit risk from underlying securities

Peer Perspective

Tata Ultra Short Term Fund is currently trading at a slight premium compared to peers like HDFC Ultra Short Term Fund and ICICI Prudential Ultra Short Term Fund. A rerating could occur if it demonstrates consistent margin stability.

📊 Stock Investment Checklist (100 Points)

Tata Ultra Short Term Fund(W-IDCW Payout) • Updated: 2025-10-01 07:31:25

10

Business
High

The fund operates in a stable sector but lacks a significant competitive edge.
10

Growth
High

Consistent revenue growth observed, but profit margins are under pressure.
10

Profitability
High

ROE and ROCE are decent, but cash flow is inconsistent.
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 stable, but there are concerns about transparency.
5

Drivers
Good

Limited growth catalysts identified; execution risks are present.
5

Technicals
Good

Market sentiment is neutral with low liquidity.

Final Score & Verdict

Score 66 / 100 • Decent

The fund shows decent potential but faces challenges in profitability and valuation metrics.