All You Need To Know About Tata India Innovation Fund

Tata Mutual Fund has recently filed a draft scheme information deed (SID) with the market regulator, the Securities and Exchange Board of India (SEBI), to launch a new open-ended equity scheme, Tata India Innovation Fund, following an innovation theme.

Investment Objective

The investment objective of the Tata India Innovation Fund is to provide investors with opportunities for long-term capital appreciation by investing in equity and equity-related instruments of companies that seek to benefit from the adoption of innovative strategies & themes.

Benchmarking of the Scheme

The scheme is benchmarked to Nifty 500 TRI, as the index constituents best reflect the underlying fund’s universe. The composition of the benchmark is best suited for comparing the scheme’s performance.

Investment Strategies

The scheme would invest in companies that are involved in and/or anticipated to benefit from the innovation theme in an effort to achieve capital appreciation. By selecting companies from the list of fundamental industries under the Innovation theme that have the potential for significant growth and a particular sustainable competitive advantage, the fund manager would want to construct a portfolio.

The scheme’s approach involves actively managing investments, with the main objective being to maximise capital growth over the long run. It will concentrate on allocating a sizeable part (at least 80% of net assets) to stock and equity-related instruments of businesses that are leading the way in innovation, whether by creating ground-breaking goods or services or coming up with creative business plans. In order to maximise returns, the fund manager will use an active management strategy and a bottom-up stock selection procedure. The plan will continue to have a diverse portfolio with a range of market capitalisations.

Scheme Suitable for Investors

Tata India Innovation Fund is suitable for investors seeking

• Long Term Capital Appreciation
• Investment in equity and equity related instruments of companies engaged in and/or expected to benefit from adoption of innovative strategies & theme.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.