Mumbai, Mar. 10 : ICRA Limited (ICRA) has assigned a Credit Risk Grading of MFAAA to Tata Income Fund (TIF), a mutual fund scheme launched in May 1997 and managed by Tata TD Asset Management Private Limited (TTDAMPL). The Credit Risk Grading of MFAAA indicates highest quality. The investment quality is similar to that of fixed income obligations of highest safety with similar maturity. The grading should, however, not be construed as an indication of the performance of the Mutual Fund scheme or of volatility in its returns. Credit Risk Grading TIF's portfolio is characterised by a high exposure to instruments credit rated in the high safety categories in the long term, effective liquidity management, and conservative management practices. The highest Credit Risk Grading also reflects the scheme's internal credit procedures and adherence to statutory guidelines and to the scheme's internal investment guidelines. TIF's investment policy emphasises superior credit quality and liquidity of underlying instruments while at the same time providing medium to long-term capital gains. While, the fund's core investments are in Government securities (GILTS) and corporate debentures, it has also invested in Mibor-linked papers, corporate commercial papers, certificates of deposit, securitised debt obligations, time deposits, call money, and such other instruments TIF's portfolio is characterised by investments in GILTS and corporate debentures with credit ratings not lower than AA or equivalent. In consonance with its internal guidelines, the fund has been focusing on investing in AAA or equivalent credit rated instruments. As part of its investment policy, TIF has internal credit procedures to assess the quality of issuers, besides internal limits on company and group exposures, and the same have been complied with. The fund, with adequate assets in highly liquid instruments, has effectively managed its liquidity needs so far.
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