Tata Mutual Fund has filed offer document with Securities and Exchange Board of India (Sebi) to launch new fund named as Tata PSU'S Bond Fund, an open-ended debt scheme. The face value of the new issue will be Rs 10 per unit.
The investment objective of the scheme is to provide reasonable returns by predominantly investing in debt and money market instruments of domestic public sector undertakings.
The Scheme will offer three plans i.e. Regular Investment (RIP), High Investment (HIP) and Super High Investment Plan (SHIP). All options will offer- growth option and dividend reinvestment and payout option with monthly, quarterly and half - yearly frequency.
The minimum investment amount under RIP will be Rs 10,000 and in multiples of Re 1 thereafter, under HIP will be Rs 50 lakh and in multiples of Re 1 thereafter and minimum investment amount for SHIP will be Rs 1 crore and in multiples of Re 1 thereafter.
The scheme seeks to collect a minimum corpus of Rs 2 crore during NFO period.
The scheme may invest up to 65%-100% in debt and money market instruments of PSUs with low risk profile. It will invest up to 35% in other debt and money market instruments with medium risk profile and up to 35% in foreign debt securities in medium to high-risk profile.
Investment by the scheme in securitised debt will not normally exceed 20% of the net assets of the scheme. The scheme net assets will have a maximum derivative net position of 50% of the net assets of the scheme.
Not more than 25% of the net assets of the scheme shall be deployed in securities lending. The Scheme 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.
The scheme will not charge an entry load.
For RIP the scheme will charge an exit load of 1.00% if redeemed before 365 days from the date of allotment. For HIP the scheme will levy 0.50% if redeemed before expiry of 365 days from the date of allotment. And the exit load is nil for SHIP.
The performance of the scheme is being benchmarked to the performance of CRISIL Composite Bond Fund Index.
Kinshuk Sharma will manger the domestic portfolio and Sudhir Agarwal will manage the overseas portfolio.