Tata Mutual Fund has introduced a new open-ended equity scheme called Tata Multi Cap Fund. The scheme, which is an NFO (New Fund Offer), will be open for investments from 16th January 2023 to 30th January 2023. Individuals and institutions can invest in this fund during this time period.
| NFO | Tata Multi Cap Fund |
|---|---|
| NFO Open Date | 16 Jan 2023 |
| NFO Close Date | 30 Jan 2023 |
| Re-open | 3 Feb 2023 |
| Benchmark | Nifty 500 Multicap 50:25:25 TRI |
| Fund Manager | Rahul Singh (Domestic Equity) Murthy Nagarajan (Fixed Income) Arvindkumar Chetty (Overseas investment) Co- Fund Manager – Tejas Gupta |
| Exit Load | 1% unit redeem before 1 Year (12% of unit redeem before 1 year -NIL) |
| Minimum Investment | 5,000 |
Investment Strategy
The Scheme would invest in companies based on various criteria including sound professional management, track record, industry scenario, growth prospects, liquidity of the securities, etc.
The Scheme will emphasis on well managed, good quality companies with above average growth prospects.
A multi cap fund portfolio includes securities of companies in various stages of the earnings cycle, with the goal of achieving a balance between stability and growth potential.
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The earnings cycle can be divided into three broad categories: Earnings Stability, Earnings Upgrades, and Earnings Turnaround.
Understanding Scheme Risk and Its Mitigation:
Investing in equities carries a natural market risk that cannot be fully eliminated.
However, the following steps have been taken with the goal of reducing other risks associated with equity investing:
| Nature of Risk | Mitigation Measure |
|---|---|
| Poor Portfolio Quality | Pre-approved universe of stocks based on strong fundamental research. New stock addition only with the prior approval of investment committee. |
| Performance Risk | Periodic evaluation of individual stock’s performance and profit/loss. Comparison of the scheme’s performance with that of a benchmark index and similar funds. |
| Concentration Risk | Cap on maximum single sector exposure. Cap on maximum single stock exposure |
| Liquidity Risk | Periodical review of the liquidity position of each scrip (Market capitalization, average volume in the market vis. a vis. Portfolio Holding). |
