Tata Mutual Fund launches CRISIL-IBX GILT Index Fund: Key things to know

Tata Mutual Fund has announced 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. The New Fund Offer (NFO) has opened for subscription on September 23, 2022 and will close on September 28, 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 percent allocation and will be benchmarked against CRISIL-IBX Gilt Index – April 2026 (TRI), Tata Mutual Fund said in a statement on Friday.

Amit Somani is the fund manager of the NFO.

Commenting on the launch of the fund, 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Asset Management said, "Over the past 1 year, yield levels have risen on account of rate hikes done, excess liquidity withdrawn, and economy coming out of COVID-19 shock. Currently within G secs, 3-4 years segment may be looked up to. The spread between 1 year and 3 / 3.5 years 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 percent 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.