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Mumbai, 23rd September 2022: Tata Mutual Fund announces the launch of Tata CRISIL-IBX GILT Index – April 2026 Index Fund, an open-ended Target Maturity Index Fund investing in constituents of CRISIL-IBX Gilt Index – April 2026. A Scheme whose Interest Rate Risk gets mitigated with hold to maturity approach and runs no Credit Risk. The New Fund Offer (NFO) opens on 23rd September 2022 and will close on 28th September 2022.

Tata CRISIL-IBX GILT Index – April 2026 Index Fund would provide returns that correspond to the total returns of the securities as represented by the underlying index, subject to tracking error. The fund will invest in G-Sec papers with 95%-100% allocation and will be benchmarked against CRISIL-IBX Gilt Index – April 2026 (TRI).

Commenting on the launch of the fund, Amit Somani, senior fund manager-fixed income at Tata Asset Management said, "Over the past 1 year, yield levels have risen on account of rate hikes done, excess liquidity withdrawn, and economy coming out of Covid shock. Currently within G secs, 3-4 yrs segment may be looked upto. The spread between 1 yr and 3 / 3.5 yrs is more than 60 bps making that part of the yield curve steep, while a flatter yield curve after that. The spread of 3.5 years security over 10 years is around 15 bps. Going into the RBI policy on 30 Sept., markets may price in an another large rate hike by RBI, in line with policy rate actions of global Central Banks”.

The exit load is 0.25% of the applicable NAV, if redeemed on or before 30 days from the date of allotment. The minimum subscription amount is Rs. 5,000 per application and in multiples of Re 1 thereafter. The minimum application amount is applicable for switch-ins as well.

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