The Hindu Business Line : Tata MF launches Equity Management Fund

FUND LAUNCH: Mr Ved Prakash Chaturvedi, MD, Tata Asset Management, at a press conference while launching Tata Equity Management Fund in Mumbai on Monday. - Shashi Ashiwal

Mumbai , May 15

Tata Mutual Fund today launched a new close-ended equity scheme, Tata Equity Management Fund, which will automatically convert into an open-ended scheme after 18 months, without further reference from the mutual fund or trustee.

The fund is open from May 15 to June 9, and reopens for repurchase before July 7. The new scheme allows a weekly exit option to the investors. There will be no entry or exit load, during the 18 months, but an exit charge will be applicable, based on SEBI guidelines.

The 18-month close-ended scheme will make the fund manger run a structured portfolio and be equitable to investors, Mr Ved Prakash Chaturvedi, Managing Director, Tata Asset Management Ltd, said.

The scheme aims to generate long-term equity growth combined with a derivatives feature, to protect the portfolio from a downside risk while aiming to maximise long-term returns, he said. It will invest across industries, in a diversified portfolio of select stocks. Investment strategy will be to hedge the portfolio using stock or Index derivatives, or use stock specific- or index-oriented "shorting strategy" to enhance returns. Hedging or shorting will be done in the fund based on the price per earnings ratio of the S&P CNX Nifty