According to the company, the scheme is designed to generate long-term capital appreciation through allocations to sector-oriented index funds and exchange-traded funds (ETFs). The New Fund Offer (NFO) opened for subscription on June 22 and will close on July 6.
The fund will follow a multi-sector allocation approach, investing across sectors based on factors such as sector momentum, market trends and macroeconomic conditions. Tata Asset Management said the strategy may evaluate recent sector performance and adjust allocations after considering volatility and broader market outlook.
The company stated that sector leadership in equity markets changes over time, with sectors such as information technology, pharmaceuticals, PSU banks, infrastructure, manufacturing and consumption performing differently across market cycles.
Anand Vardarajan, Chief Business Officer at Tata Asset Management, said the scheme aims to provide investors with diversified sector exposure through a rules-based allocation framework using passive investment instruments.
The Tata Multi-sector Passive FoF will invest through a fund of funds structure, allowing exposure to multiple sector-focused index funds and ETFs.
Key features of the scheme include:
- Investment across multiple sector-oriented passive funds and ETFs
- Minimum application amount of Rs 5,000 and multiples of Re 1 thereafter
- No entry load
- Exit load of 0.50% for redemptions within 30 days from allotment, and nil thereafter
- Benchmark: Nifty 500 TRI
- Risk classification: Very High
Tata Asset Management stated that rebalancing within the FoF structure would not attract capital gains tax for investors at the time of portfolio adjustments within the scheme.
Established in 1994, Tata Asset Management is the investment manager for Tata Mutual Fund. The company offers equity, debt and hybrid mutual fund products across different investment categories.
