TATA MF Files Offer Document With Securities - Oct 31, 2008

TATA Mutual Fund has filed offer document with Securities and Exchange Board of India (SEBI) to launch Tata Infrastructure Tax Saving Fund. It is a 10 year close-ended equity linked savings scheme (ELSS) with a compulsory lock-in period of 3 years. The face value of the new issue will be Rs 10 per unit. The investment objective of the scheme is to seek to provide medium to long term capital gain by investing predominantly in equity / equity. related instruments of the companies in infrastructure and infrastructure related sectors along with the income tax benefit to its unitholders.

The scheme will offer a single plan (ELSS Plan) with dividend and growth option. Dividend option will further offer reinvestment and payout facility. The minimum investment amount is Rs 500 and in multiples of Rs 500 thereafter. The scheme seeks to collect a minimum corpus of Rs 2 lakh during NFO period. Lock-in period: Investment in the scheme is subject to a lock in period of three years hence investors will not be able to redeem their units till the expiry of three years from the date of allotment.

After completion of three years' lock in period, repurchase facility will be provided on all business days at NAV based price plus exit load. The scheme will invest 80%-100% in equity & equity related instruments with high-risk profile. Out of the above the scheme will invest 65-100% in equity and equity related instruments of companies in infrastructure and infrastructure related sectors. The scheme will invest upto 20% in debt, money market and securitised debt instruments.