Tata MF Rolls Out Tata SIP Fund

Tata Mutual Fund has come out with a new scheme-Tata SIP Fund. This is a three-year close-ended fund with a hybrid asset allocation. The investment strategy of the fund centers on systematic investment in equity-related securities.
Given that the equity market is highly volatile, the fund intends increasing its exposure to equities in a phased manner. Hence in the first year, only 0-35% will be invested in equity, while the rest will be deployed in debt and money-market instruments. By the end of the second second the targeted equity exposure will be 30-70% and this will finally increase to 65-100% by the third year. Therefore, instead of an investor doing a monthly SIP, the fund itself will invest in stocks systematically. At the end of the 36-month tenure, investors will be given the option of deploying the redemption amount in Tata Pure Equity fund without any loads. Liquidity window will be available on first Wednesday of every month before the completion of 36 months' duration. The minimum investment amount is Rs 5000 and in multiples of Re 1 thereafter. The scheme will be benchmarked against BSE-Sensex.

Murthy Nagarajan and Venugopal M are the designated fund managers. Snapshot Unit cost during NFO: Rs 10 Type of fund: Close-ended Options: Growth, Dividend payout Minimum investment: Rs 5,000 Benchmark: BSE Sensex Fund Managers: Murthy Nagarajan and Venugopal M. Offer opened: 15 January 2007 Offer closes: 15 February 2007.