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Monday, March 16, 2009

Tata MF plans to launch FMP Series 25

Investment exposure will be in debt and money market instruments

Tata Mutual Fund has filed offer document with Securities and Exchange Board of India (Sebi) to launch new fund named as Tata Fixed Maturity Plan- Series 25, a close-ended debt scheme. The face value of the new issue will be Rs 10 per unit.

Tata FMP-Series 25 will be launched under three schemes with various maturities i.e. Scheme A, B and C with maturity ranging between 12 months to 18 months from the date of allotment. Each Scheme has three plans Regular Investment Plan (RIP), High Investment Plan (HIP) and Super High Investment Plan (SHIP).

The investment objective of the schemes is to generate income and / or capital appreciation by investing in wide range of debt and money market instruments.

These schemes will invest its entire corpus in the debt and money market securities. The scheme may invest up to a maximum of 50% of the schemes net assets in domestic securitised debt. Not more than 25% of the net assets of the schemes shall be deployed in securities lending.

No investments will be made in foreign securitised debt. Not more than 25% of the net assets of the schemes shall be deployed in securities lending. Schemes would limit its exposure, with regards to securities lending, for a single intermediary, to the extent of 5% of the total net assets of the scheme at the time of lending.

Scheme A, B and C will have growth and periodic dividend option. Periodic dividend option offers dividend payout and dividend re-investment facilities.

These schemes will not charge an entry load during NFO. It will not levy exit load on redemption on maturity.

Under all three Schemes A, B and C, the minimum investment amount under RIP will be Rs 10,000 and multiples of Re 1 thereafter, for HIP the minimum application amount will be Rs 25 lakh and multiples of Re 1 thereafter. The minimum investment amount under SHIP will be Rs 1 crore and in multiples of Re 1 thereafter.

The scheme will be benchmarked against CRISIL Short Term Bond Fund Index.

Chintan Mehta will manage the scheme.
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