Tata Mutual Launches Dividend Yield Fund
Tata Mutual Fund has launched Tata Dividend Yield Fund. The fund would be open for initial offer from September 28 to October 27, 2004. It would predominantly invest in high dividend yield stocks. This would be the third fund of its kind, Birla Sunlife MF and Principal Mutual have launched similar funds earlier.
The fund offers two options: Growth and Dividend. The minimum subscription under both the options is Rs 5000 and minimum additional investment is Rs 1000. An investor would have to maintain a minimum balance of atleast Rs 5000 or 500 units. The fund would charge initial expenses of 6 per cent, which would be amortized over a period of five years and would be included in the NAV.
The following load structure would be applicable during the initial offer period as well as during ongoing sales and purchases:
- On amount invested other than by way of Systematic Investment Plan: an entry load of 2.25 per cent on investments less than Rs 2 crores and no exit load.
- On amount invested by way of Systematic Investment Plan: no entry load but an exit load of 2.25 per cent if redeemed within 365 days.