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Tata SIP Fund


This is a three-year close-ended fund with a hybrid asset allocation. The investment strategy of the fund centers around systematic investment in equity-related securities. Given that the equity market is highly volatile, the fund intends increasing its exposure to equities in a phased manner. Hence in the first month, only 2.75 per cent of the corpus will be invested in equity, while the rest will be deployed in debt and money-market instruments. By the end of the second month the targeted equity exposure will be 5.5 per cent and this will finally increase to 99 per cent by the 36th month. Therefore, instead of an investor doing a monthly SIP, the fund itself will invest in stocks systematically.
At the end of the 36-month tenure, investors will be given the option of deploying the redemption amount in Tata Pure Equity fund without any loads. Liquidity window will be available on first Wednesday of every month before the completion of 36 months' duration.
Murthy Nagarajan and Venugopal M are the designated fund managers. While Nagarajan has been with the fund house for close to eight years managing various debt funds, Venugopal manages equity funds of Tata Mutual Fund.
Snapshot
Unit cost during NFO: Rs 10
Type of fund: Close-ended
Options: Growth, Dividend payout
Minimum investment: Rs 5,000
Benchmark: BSE Sensex
Fund Managers: Murthy Nagarajan and Venugopal M.
Offer opened: January 15, 2007
Offer closes: February 15, 2007