Tata Mutual Fund on Tuesday announced the launch of Tata Housing Opportunities Fund -- an open-ended equity scheme based on housing theme. The new fund offer (NFO) opened for subscription today and will close on 29 August.
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Here are key things to know about the fund:
About the fund
Tata Housing Opportunities Fund will invest in a portfolio of companies that mainly supply the materials, products, and services that go into building a house.
Tejas Gutka, Venkat Samala and Murthy Nagarajan are the fund managers of this NFO.
Investment objective
According to the fund house, the aim of this NFO is to generate long-term capital appreciation by investing predominantly in equity and equity related instruments of entities engaged in and/or expected to benefit from the growth in housing theme.
However, there is no assurance or guarantee that the investment objective of the scheme will be achieved.
Minimum investment
Minimum investment amount in the fund is Rs 5,000 and in multiple of Re 1 thereafter.
Load structure
There is no entry load and the investor will not bear an exit load if the withdrawal amount or switched out amount on redemption/switch-out/SWP/STP on or before expiry of 365 days from the date of allotment is not more than 12 percent of the original cost of investment, the fund house said.
What fund managers say?
Speaking on the launch fund manager, Tejas Gutka who will be managing this fund said that "This is a more structural offering rather than a time-bound tactical portfolio. Many of the companies that fit into this theme also benefit from the demographic dividend of our country in the form of a rising per-capita incomes, increasing urbanisation, rising middleclass, nuclear families, young and educated workforce etc. Thus, the portfolio would qualify as a good long-term investment."
"The NIFTY Housing Index (TRI) - is broader, in the sense that it has a wider industry classification. In our view, some of these businesses are indirect beneficiaries of the real estate sector. A large part of our portfolio expected to be direct beneficiary of a housing up-cycle and as such, our portfolio will have a reasonable divergence from the benchmark. We will thus focus on more bottom-up stock selection based on our research framework. The overall portfolio will be guided by our house philosophy of Growth-At-A-Reasonable-Price (GARP)," he added.
(Edited by : Anshul)
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