Tata Mutual Fund concluded the one-day IPO (Initial Public Offer) for its new Tata Short Term Bond Fund (TSTBF) on 8th August 2002 by mopping up Rs. 101 Crores on that single day, and joining a very select group of such large-sized Mutual Fund IPOs in the last few months. The TSTBF is an innovative flexi product that combines the moderate risk of debt investment with ready liquidity. The short term bond fund category generally offers an indicative return of between 6.5 per cent to 8 per cent depending on prevailing interest rates, related money market conditions, etc which is an attractive mark-up over the regular savings bank interest rate of 4 per cent. At the same time, investors can use this investment for quick withdrawals to meet short term liquidity needs, since the money can be withdrawn fully / partially at just a day’s notice. This TSTBF also calculates its NAV for Saturdays and Sundays, thereby giving investors transacting on Mondays the advantage of interest earning even on the intervening holidays.

This one – day IPO success of Tata Mutual Fund follows closely on the heels of its other recent landmark when its convenience product the Tata Liquid Fund also crossed the Rs. 100 Crore figure on 31st July, 2002. Tata Mutual Fund gratefully acknowledges the support of its wide investor base of more than 2,30,000 investors spread across the country.