Tata Mutual Fund has launched a new open-ended equity scheme called Tata Small Cap Mutual Fund Investment Scheme. The NFO (New Fund Offer) will be open for subscription from October 19, 2018, to November 02, 2018.
The investment objective of the Tata Small Cap Fund with NFO price of 10 Rupees per unit is to generate long-term capital appreciation by mainly investing in equity and equity-related securities of small cap firms.
The open-ended equity scheme will invest 65 percent to 100 percent of assets in equity and equity-related securities of small cap firms with a high-risk profile. The scheme will deploy up to 35 percent of assets in debt and money market securities comprising units of debt and liquid schemes of the fund house with low to medium risk profile.
The Tata Small Cap Mutual Fund Investment scheme mainly investing in small-cap stocks offers both regular and direct plans with the two options – Growth and Dividend options. The Dividend option offers the sub-options called Dividend Payout, Dividend Reinvestment and Dividend Sweep.
The minimum application amount of the new open-ended equity scheme of Tata Mutual Fund is 5000 Rupees and in multiples of one Rupee thereafter. The minimum additional amount of the Tata Small Cap Fund is 1000 Rupees and in multiples of one Rupee thereafter.
The Tata Small Cap Fund aims to collect a minimum target or subscription amount of 10 crore Rupees during the new fund offer period.
The Tata AMC has appointed Chandraprakash Padiyar as the fund manager of the Tata Small Cap Fund which is benchmarked against Nifty Small cap 100 TRI Index, as reported on KJMC.
The Tata Small Cap Mutual Fund Investment scheme is suitable for investors who are seeking Long Term Capital Appreciation, and investors who want to make a predominant investment in equity or equity-related securities of the small-cap, based on information provided on the official website of SEBI.[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. ]