Mumbai: Tata Mutual Fund announced the launch of a unique new mutual fund scheme, the Tata Equity Management Fund (TEMF).
The TEMF is initially an 18-month close-ended equity scheme with a weekly exit option for investors during the close-ended period.
After completion of this period, the scheme will automatically be converted into an open-ended scheme.
This is the first time such a product is being launched in the country.
There is neither entry nor exit load while investing but there would be an exit charge depending on the period of exit in the 18 month time frame.
Earlier when the investor use to exit, he had to pay the higher exit charge.
The new fund offer for TEMF will be open from May 15 to Jue 9. The scheme will reopen for repurchase not later then July 7.
Mr Ved Prakash Chaturvedi, MD, Tata Asset Management Ltd says, "On the one hand, the economic fundamentals look good from a long term view - given a high GDP growth, higher level of expenditure into infrastructure, increased global business for the BPO sector and new opportunities in pharmaceutical and IT sectors."
"However, in a current sustained bullish market, relative valuations have gone up significantly and investors are now worried about optimisation of returns while investing."
TEMF brings forth the strategy to minimise the risk and maximise the returns in a volatile market, he added.
TEMF will invest across market capitalisations in a diversified portfolio of carefully selected stocks.
The fund will aim to moderate downside risk to the portfolio through hedging the portfolio using stock or index derivatives, he explained.
He further said that the funds would also capitalise on both, short and long-term opportunities through a stock specific or index oriented shorting strategy to enhance the returns.
"The idea behind keeping the investment close-ended was to make it equitable for the investor, manager of the funds as well as the performance of the fund in the market," said Mr Chaturvedi.
Comments
0 comment