Tata Asset Management on Monday launched a new fund offer (NFO) for its Tata Multicap Fund, an open-ended equity scheme that aims to capture India’s potential growth in the short to medium term.
The multi-cap scheme, which invests across large, mid, and small-cap stocks, will stay open for subscription from January 16 to 30, 2023. Thereafter, it will re-open for continuous sale and repurchase.
Commenting on the scheme, Rahul Singh, chief information officer (CIO) of Equities at Tata Asset Management, said, “The fund focuses on combinations across market caps, strategies, themes, and sectors with growth at reasonable price or GARP as the underlying philosophy aiming to improve the risk adjusted-returns of the overall portfolio and potentially provide a smoother journey to the investor.”
He emphasised that the fund is well-paced to capture India’s “potential broad-based economic growth over the next three to five years.” The press release said that the portfolio would constitute securities of companies at various stages of the earnings cycle to provide the right balance between stability and opportunities. The segments are broadly bucketed as earnings stability, earnings upgrades, and earnings turnaround.
The combination, it expects, would help tap companies growing at a stable rate which provides a base, benefitting from a change in the earnings cycle that can lead to valuation rerating and recovering from an adverse situation based on the industry or management turnaround.
The fund will be benchmarked against the Nifty 500 Multicap 50:25:25 Total Returns Index and will offer a regular and direct plan.
The Scheme’s Key Highlights
• NFO runs from January 16 to 30, 2023.
• The aim is to generate long-term capital gains from equity-related securities across market capitalisation, although it does not guarantee any returns.
• An open-ended equity scheme investing across large-cap, mid-cap, and small-cap stocks.
• Fund managers are Rahul Singh (Equity), Murthy Nagarajan (Debt) & Arvind Kumar Chetty (Overseas); co-fund manager Tejas Gutka (Equity).
• Benchmark Nifty 500 Multicap 50:25:25 TRI.
• The minimum investment amount is Rs 5,000, and after that, in multiple of Re 1.
• Redemption/Switch-out/SWP/STP on or before the expiry of 365 days from the date of allotment: It is nil if the switched-out amount is not more than 12 per cent of the original cost of investment. It is 1 per cent if the switched-out amount is more than 12 per cent, and it is nil if the redemption/switch-out/SWP/STP is after the expiry of 365 days from the date of allotment.
