Tata Floating Rate Fund

Review Date: 04-12-2025

Beginning of Analysis

Tata Floating Rate Fund is the 10th ranked fund in the Floater Fund category. The category has total 12 funds. The Tata Floating Rate Fund has shown a poor past performence in Floater Fund. The fund has a Jensen Alpha of 2.77% which is lower than the category average of 3.28%, showing poor performance. The fund has a Sharpe Ratio of 1.58 which is lower than the category average of 2.53.
The past performance of the fund may or may not be sustained in the future. The review is not investment advice nor is it a recommendation to buy or sell funds. The ranking is based on proprietary methodology developed by bmsmoney. The methodology is based on the past performance of the funds and does not guarantee future performance.
Floater Mutual Funds are a category of debt mutual funds that primarily invest in floating-rate debt instruments. These instruments have interest rates that reset periodically, typically linked to a benchmark rate such as the MIBOR (Mumbai Interbank Offered Rate) or the repo rate. Floater Mutual Funds are ideal for investors looking to minimize interest rate risk while earning stable returns. These funds perform well in a rising interest rate environment and are suitable for conservative investors with a short to medium-term investment horizon. However, they may underperform in a falling interest rate scenario, and investors should carefully assess their financial goals and risk tolerance before investing. Additionally, choosing funds managed by experienced professionals can enhance the potential for better risk-adjusted returns.

Tata Floating Rate Fund Return Analysis

• The fund has given a return of 0.62%, 2.12 and 2.83 in last one, three and six months respectively. In the same period the category average return was 0.52%, 1.86% and 2.94% respectively.
• Tata Floating Rate Fund has given a return of 8.21% in last one year. In the same period the Floater Fund category average return was 8.12%.
• The fund has given a return of 7.91% in last three years and ranked 10.0th out of 12 funds in the category. In the same period the Floater Fund category average return was 8.16%.
• The fund has given a SIP return of 7.73% in last one year whereas category average SIP return is 7.58%. The fund one year return rank in the category is 7th in 12 funds
• The fund has SIP return of 8.1% in last three years and ranks 9th in 12 funds. Franklin India Floating Rate Fund has given the highest SIP return (8.67%) in the category in last three years.

Tata Floating Rate Fund Risk Analysis

• The fund has a standard deviation of 1.0 and semi deviation of 0.68. The category average standard deviation is 0.88 and semi deviation is 0.59.
• The fund has a Value at Risk (VaR) of 0.0 and a maximum drawdown of -0.28. The category average VaR is -0.1 and the maximum drawdown is -0.14. The fund has a beta of 0.52 which shows that fund is less volatile than the benchmark.

Standard deviation measures the fund's return volatility and Semi deviation focuses on downside volatility. Value at Risk (VaR) is a measure of the risk of investments. Maximum Drawdown is the maximum loss from a peak to a trough of a portfolio. Beta measures the volatility of the fund compared to the benchmark. A beta of 1 indicates that the fund will move in line with the benchmark. A beta of more than 1 indicates that the fund will be more volatile than the benchmark and vice versa.

Very Good Performance in Floater Fund Category

Good Performance in Floater Fund Category

Poor Performance in Floater Fund Category

Very Poor Performance in Floater Fund Category

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Investors beware: Mutual Fund investments are subject to market risks. Please read the scheme related documents carefully.

Data Source: www.amfiindia.com

SEBI Categorization