Tata Ultra Short Term Fund (M-IDCW) is a debt mutual fund designed for investors seeking short-term investment options with relatively lower risk. Ideal for those looking to park their funds for a brief period while earning potential returns, this fund is suitable for conservative investors and those with liquidity needs. Its focus on high-quality debt instruments ensures stability and capital preservation, making it a reliable choice in volatile markets.

Short-term investment horizon
Lower risk profile
Focus on high-quality debt instruments
Ideal for conservative investors
Enhanced liquidity options
Potential for better returns than traditional savings

Investment Thesis

Tata Ultra Short Term Fund stands out due to its strong backing from the Tata Group, known for credibility and stability. With the increasing demand for digital services, this fund is well-positioned to capitalize on growth opportunities. Additionally, its attractive valuation compared to peers makes it a compelling choice for investors seeking reliable returns.

Strong promoter group: Tata's reputation enhances trust and stability.
Digital services growth: Positioned to benefit from the expanding digital landscape.
Attractive valuation: Competitive pricing compared to peer funds.
Robust risk management: Focus on capital preservation and steady returns.
Diversified investment portfolio: Reduces risk while maximizing potential gains.

Opportunity vs Risk

Opportunities

Potential for stable returns
Low interest rate environment
Diversification in fixed income
Liquidity for short-term needs

Risks ⚠️

Market volatility impact
Interest rate fluctuations
Credit risk from bonds
Limited growth potential

Peer Perspective

Tata Ultra Short Term Fund trades at a slight premium compared to peers like HDFC Ultra Short Term Fund and ICICI Prudential Ultra Short Term Fund. A rerating could occur with improved margin stability and consistent returns.

📊 Stock Investment Checklist (100 Points)

Tata Ultra Short Term Fund(M-IDCW) • Updated: 2025-10-01 07:31:15

10

Business
High

The fund operates in a stable sector with a clear investment model.
10

Growth
High

Consistent revenue growth observed, but profit margins are variable.
10

Profitability
High

ROE and ROCE are acceptable, but OCF shows some volatility.
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 strong, but some concerns about disclosures.
5

Drivers
Good

Growth drivers are present, but execution risks remain.
5

Technicals
Good

Market sentiment is neutral with moderate liquidity.

Final Score & Verdict

Score 68 / 100 • Decent

The Tata Ultra Short Term Fund shows decent potential with stable growth prospects, but caution is advised due to some risks in profitability and valuation metrics.