Tata Mutual Fund has launched the Tata Services Industries Fund. As the name implies, the fund aims to "benefit from India's global service advantage". The fund's IPO opened on February 9 and would continue till March 10, 2005.
Tata Service Industries Fund aims to achieve medium to long-term capital gains by investing predominantly in equity and equity related instrument of companies in the services sector. The fund would invest at least 70 per cent of its assets in equity instruments and up to 30 per cent in debt and money market instruments.
The fund incorporates a vast range of activities under its domain of services ranging from IT and IT-enabled services to trade, retail, tourism, hotels, transportation, distribution & logistics, construction, communications, media and entertainment, education, hospitals and health services, insurance, banking and financial services.
The fund would charge an entry load of 2.25 per cent for investment up to Rs 2 crore. An exit load of 2.25 per cent would be applicable if the investment is redeemed before 365 days of allotment of units.
Our Take
Services sector, that has been contributing to over 50 per cent of the country's GDP and has grown at a very consistent rate in the past, is definitely an area that could generate decent returns for investors. Way back in June 1999, UTI Mutual Fund had launched a similar fund by the name of UTI Services Sector fund. It has done well in the past year and a half.
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