Tata Floating Rate Fund(IDCW)

Ticker: mf17200
Decent 68/100

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Business Overview

Tata Floating Rate Fund (IDCW) is a dynamic debt mutual fund designed to provide investors with a steady income while managing interest rate risk. Ideal for conservative investors seeking regular returns, this fund invests primarily in floating rate instruments, ensuring that your investment is less impacted by rising interest rates. With a focus on capital preservation and liquidity, it’s perfect for those looking to diversify their portfolio and achieve stable growth.

  • Dynamic debt mutual fund for steady income
  • Invests in floating rate instruments
  • Minimizes interest rate risk
  • Ideal for conservative investors
  • Focus on capital preservation and liquidity
  • Helps diversify investment portfolio

Investment Thesis

Tata Floating Rate Fund (IDCW) presents a compelling investment opportunity due to its strong promoter credibility, robust growth in digital services, and attractive valuation compared to peers. This fund is well-positioned to capitalize on evolving market dynamics, making it a prudent choice for retail investors seeking stability and growth.

  • Backed by Tata Group, known for its strong corporate governance and reliability.
  • Capitalizes on the growing demand for digital financial services in India.
  • Offers competitive yields with lower interest rate risk due to floating rate structure.
  • Valuation metrics are favorable compared to similar funds in the market.
  • Ideal for conservative investors looking for steady income and capital preservation.

Peer Perspective

Tata Floating Rate Fund is currently trading at a slight premium compared to peers like HDFC Floating Rate Fund and ICICI Floating Rate Fund. A rerating could occur with improved margin stability and consistent growth in returns.
📊 Stock Investment Checklist (100 Points)
Tata Floating Rate Fund(IDCW) • Updated: 2025-10-01 07:24:45
  • 10
    Business
    High
    The sector is stable with moderate growth potential.
  • 10
    Growth
    High
    Consistent revenue growth but profit margins are fluctuating.
  • 10
    Profitability
    High
    ROE and ROCE are acceptable, but cash flow is inconsistent.
  • 8
    Valuation
    High
    Valuation metrics are slightly above peers.
  • 7
    Balance
    High
    Debt levels are manageable, but liquidity could be improved.
  • 9
    Governance
    High
    Promoter holding is strong, but some concerns on disclosures.
  • 5
    Drivers
    Good
    Limited growth catalysts identified.
  • 2
    Technicals
    Low
    Weak market sentiment and low liquidity.
Final Score & Verdict
Score 68 / 100 • Decent
The fund shows decent potential with moderate risks, but investors should be cautious of market sentiment and liquidity issues.