Tata MF has applied at the SEBI (Securities and Exchange Board of India) for approval to launch an open-ended equity scheme called Tata Small Cap Fund. The draft offer document on SEBI’s website confirmed the news.
The Small Cap Fund will invest at least 65 percent of its assets in equities and equity-related instruments of small-cap companies. The open-ended equity scheme will further deploy about 35 percent of its assets in equity and equity-related securities of other firms.
The new fund scheme also plans to invest about 35 percent of assets in debt and money market securities, including Tata AMC’s units of debt and liquid schemes. The scheme will also invest about 10 percent in units issued by (REITs) real estate investment trusts and (InvITs) infrastructure investment trusts.
Tata Small Cap Fund offers both Regular and Direct Plans with both the options of Growth and Dividend. The minimum application amount for the scheme is 5,000 Rupees and in multiples of one rupee thereafter.
The performance of the Small Cap Fund scheme of Tata Mutual Fund is benchmarked under Nifty Small cap 100 TRI Index.
The fund house charges the exit load of 1 percent if redeemed or switched-out on or before one year from the date of allocation.
Rupesh Patel has been appointed as the fund manager of the Small Cap Fund, according to Money Control. He has been working as a Fund Manager at Tata AMC since June 2013.
Mr. Patel joined Tata AMC in May 2008. He was in charge of equity research assignments and worked as Head of Portfolio Management Services vertical, at the firm. He worked as Principal Officer of PMS from January 2012 to June 2013. He served as the Deputy General Manager of Investments from May 2008 to January 2012.
Before joining the Tata MF, he worked at Indiareit Fund Advisors Pvt Ltd, and Credit Analysis & Research Ltd. The Tata Small Cap Fund manager has many years of work experience in equity investments, credit risk assessment, private equity real estate investments, and infrastructure projects evaluation. He holds BE (Civil Engineering) and MBA (Finance), reported Bloomberg.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]