Tata Asset Management will launch its New Fund Offering (NFO) Tata Multicap Fund, an open-ended equity scheme. The NFO opens on 17 August and closes on 31 August. After allotment, there will be continuous sale and repurchase and the date of allotment is September 6.
The fund aims to generate medium to long-term capital growth with a diversified portfolio investment. This consists of equity and equity related instruments with investments across large cap, mid cap and small cap stocks. This does not include foreign security investments, securitized debt and credit default swaps.
A minimum of 65% of the total assets will be invested in equity while a maximum of 35% will be invested in debt. The risk profile for equity investments will be high while for debt it will range from low to medium. The minimum purchase amount is ₹5,000 and ₹1 thereafter. The fund will follow a blend of both ‘value’ and ‘growth’ style of investing depending upon market environment and opportunities
Sonam Udasi is the fund manager with 19 years of expertise on equities research. He is the Fund Manager for many of the equity schemes at Tata Asset Management since April 2016.
‘Given the current macro scenario like global trade wars between large economies, surging oil prices, an uncertain domestic political environment, and the recent SEBI reclassification norms for mutual funds, it is the right strategy to participate in multi-cap theme, which intends to generate higher returns at comparable risks over a longer period of time,’ Sonam Udasi said.
‘A multi-cap fund has a much larger universe to invest. Being market capitalization-agnostic, they can invest across the breadth of the equity market and, therefore, take advantage of the opportunities across the market spectrum. In volatile markets, the ability to move across market caps at the opportune moment may give these funds an edge,’ Prathit Bhobe, CEO-MD, Tata Asset Management told.