
Tata Mutual Fund has launched a diversified equity fund. Named as Tata Contra Fund, it will follow a strategy of contrarian investing. The fund will seek to invest in stocks which are fundamentally strong but are trading below their intrinsic value as a result of being out of favour. During the new fund offer period the fund will be available for subscription from September 26 to October 25, 2005.
The fund will invest 70-100 per cent of its assets in equities, while it can also invest up to 30 per cent of its assets in debt and money market instruments. During the new fund offer period, the fund will not charge any entry load. For investments of less than Rs 2 crore, an exit load of 2 per cent will be charged upon redemption within 365 days from the date of allotment, while no exit load will be charged for investments greater than or equal to Rs 2 crore.