Tata Asset Management, the mutual fund arm of Tata Group, has launched an open-ended equity scheme, Tata Focused Equity Fund, that will invest in a concentrated portfolio of up to 30 stocks across market caps.
The benchmark for Tata Focused Equity Fund will be S&P BSE 200 TRI and will be managed by fund manager Rupesh Patel, the company said in a press release.
The new fund offering (NFO) will be opened for subscription from November 15 and will close on November 29.
"The fund aims to construct a portfolio of stocks on bottom up basis following the GARP — growth at reasonable price philosophy. The fund will follow multi cap approach without having any particular market cap bias or sector bias. Further, from a risk management point of view, we would aim to maintain optimal liquidity," said Patel, senior fund manager at Tata Mutual Fund, announcing the scheme.
The company has kept a minimum investment amount of Rs 5,000 for the fund. There will be no entry load during the NFO while exit load will be 1 percent of the applicable net asset value (NAV), if redeemed or switched out on or before expiry of 365 days from the date of allotment.