Tata Mutual Fund has announced the launch of a close ended capital protection oriented fund - Tata Capital Protection Oriented Fund Series II. The tenure of the scheme is 3 years.

A statement from the fund house said, “The fund has an orientation to protect capital by primarily investing in AAA or equivalent rated high quality debt securities & money market instruments. The fund also explores the opportunities for capital appreciation by investing part of its funds corpus in equities.”

The scheme will allocate 82 – 100 per cent of its net assets in debt and money market instruments with low to medium risk profile. The remaining 0-18 per cent of its net assets will be invested in equity and equity related instruments with high risk profile. Exposure to derivatives (including debt and equity) will be limited to 50 per cent of the net asset. Within the overall limit of 50 per cent, equity derivative position shall be maximum 18 per cent of the net assets of the scheme.

The new fund offer price for the scheme is Rs. 10 per unit. The issue has already opened for subscription from July 06, 2012 and will close on July 20, 2012.

The minimum application amount is Rs. 10,000 and in multiples of Rs. 10 thereafter.

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