Tata Business Cycle Fund NFO – TATA AMC has launched its new mutual fund. the NFO will open for subscription from 16 July 2021 to 30 July 2021.
Also read: What is a New Fund Offer(NFO) and its importance?
Investment Objective
- Tata Business Cycle Fund is an open-ended equity scheme following business cycles based investing theme.
Why Now?
Fund Details
| Scheme name | Tata Business Cycle Fund |
| Type of scheme | An open-ended equity scheme following business cycles based investing theme. |
| NFO Dates | July 16, 2021 – July 30, 2021 |
| Fund Managers | Rahul Singh, Venkat Samala (Overseas Investment), Murthy Nagarajan (Debt Portfolio) |
| Benchmark | Nifty 500 TRI |
| Minimum Amount for Application during NFO | Rs 5,000/- and in multiple of Re.1/- thereafter. |
| Minimum Additional Purchase Amount | Rs.1000/-& in multiples of Re.1/- thereafter. |
| Minimum Redemption/Switch-Out Amount | Rs.500 or 50 units or folio balance whichever is lower |
| Load | 1)Entry Load: Not applicableb) 2)Exit Load: NIL: 3)Redemption/Switch-out/SWP/STP on or before 365 days from the date of allotment: If the withdrawal amount or switched out amount is not more than 12% of the original cost of investment-NIL 1%: Redemption/Switch-out/SWP/STP on or before 365 days from the date of allotment and if the withdrawal amount or switched out amount is more than 12% of the original cost of investment NIL: Redemption/Switch-out/SWP/STP after 365 days from the date of allotment |
| Plans | Direct and Regular |
| Options | Growth Payout of Income Distribution Cum Capital Withdrawal Option (IDCW-Payout) Reinvestment of Income Distribution cum capital withdrawal Option (IDCW-Reinvestment) |
| Minimum SIP Amount | Rs.150 Minimum number of installments- 12 |
Also read: Direct Mutual Fund Platforms in India
Fund Characteristics
Indicative Asset Allocation
Benchmark
Nifty 500 TRI (Total Return Index)
The Nifty 500 benchmark represents the top 500 companies based on full market capitalization from the eligible universe. The NIFTY 500 Index represents about 96.1% of the free-float market capitalization of the stocks listed on NSE as of March 29, 2019.
A Total Return Index (TRI) reflects the returns on the index arising from:
(a) Listed stock price movements and
(b) Dividend receipts from those stocks.
Also read: Direct Mutual Funds: Features & Benefits
Investments in different phases
Systematic Investment Plan (SIP)
| Frequency | Installments | Min. Amt |
|---|---|---|
| Daily / Weekly / Monthly | 12 | ₹150/- |
| Monthly | 6 | ₹1,000/- |
| Quarterly | 6 | ₹1,000/- |
| 4 | ₹1,500/ |
Systematic Withdrawal Plan (SWP)
| Available | Yes |
| Frequency | Monthly / Quarterly |
| Minimum Withdrawal | ₹500 /- |
Fund Managers
- Mr. Rahul Singh
- Mr. Venkat Samala (Overseas Investment)
- Mr. Murthy Nagarajan (Debt Portfolio)
Final Thoughts
Investing in an NFO is purely a personal choice. In this post, I tried to explain the features and importance of Tata Business Cycle Fund NFO. make a detailed study before you invest in the mutual fund. also, discuss with your personal financial advisor before you make the decision.
Happy Investing