Tata Mutual Fund has launched a new fund named as Tata Capital Protection Oriented Fund Series II (3 Years), a close-ended debt scheme with the duration of 3 years from the date of allotment. The New Fund Offer (NFO) price for the scheme is Rs. 10 per unit. The new issue will be open for subscription from 6 July and closes on 20 July 2012.
The primary investment objective of scheme is to seek income and minimize risk of capital loss by investing in a portfolio of fixed income securities. The scheme may invest a part of the assets in equity and equity related instruments to seek capital appreciation
The scheme offers growth option and periodic dividend option (payout).
The scheme would allocate 82% to 100% of assets in debt, money market instruments with low to medium risk profile. On the other side it would allocate upto 18% of assets in equity and equity related instruments with high risk profile.
Of the investments in debt instruments, 5% of assets would be invested in AAA/A1+ rated certificate of deposits and 95% in AAA/A1+ rated non convertible debentures.
The minimum application amount is Rs 10,000 and in multiples of Rs 1 thereafter.
The fund seeks to collect a minimum subscription amount of Rs 35 crore under the scheme during the NFO period.
Entry and exit load charge for the scheme will be nil.
Benchmark Index for the scheme is CRISIL MIP Blended Index.
Equity portion of the scheme will be managed by Thomas J Priju and debt portion will be managed by Marzban Irani.