Apr 3, 2008

Mutual Funds News - Tata MF files an offer document

Tata MF files an offer document

Tata MF is planning to launch a new fund called Tata Natural Resources Fund. Scheme: It is an open-ended equity scheme. The Investment Objective of the scheme is to seek capital appreciation by investing primarily in the equity and equity related instruments of companies that predominantly focus on or benefit from, directly or indirectly, the opportunities and developments in the natural resources sector.

Tata Natural Resources Fund offers two options i.e. growth and dividend. Dividend option will have facility of dividend payout and dividend reinvestment. The scheme may invest 65-100% in equity and equity related Instruments of companies belonging to natural resources industry. It will have investment of 0-35% in other equity and equity related instruments. The scheme may prefer to invest 0-35% in debt, money market and securitized debt medium instruments. Investment by the scheme in securitized debt will not normally exceed 20% of net asset of the scheme. The scheme may levy 2.50% an entry load for each investment amount less than Rs. 2 crore. No entry load will be charged for the investment amount equal to or more than Rs 2 crore.

The scheme carries an exit load for each investment amount less than Rs. 2 crore; it may charge 1% an exit load if redemption is done on or before expiry of 12 months from the date of allotment. For investment amount greater than or equal to Rs. 2 crore, the scheme may not charge any exit load. If redemption is done after expiry of twelve months from the date of allotment, there will be no exit load.