Tata Mutual Fund renames, restructures existing scheme

Tata Mutual Fund has restructured its already existing monthly income fund with added features and renamed it as Regular Savings Equity Fund.
"Tata Regular Savings Equity Fund is part of our continued endeavour to offer our customers a portfolio of innovative products and investment options. We are confident that the fund will fulfill the need for a tax efficient investment option for less than three-year investment horizon with, lower volatility than regular equity-based funds," Tata Asset Management Chief Executive and Managing Director R Ganesh told reporters here.
The investment objective of the scheme is to provide long term capital appreciation and income distribution to investors by predominantly investing in equity and equity related instruments, equity arbitrage opportunities as well as investments in debt and money market instruments.

Units of the scheme will be available for ongoing subscription at net asset value (NAV) based prices with effect from August 1 and would have a perpetual duration, since it is being open-ended in nature.
The fund will have up to 35 per cent allocation to net long equity, managed strategically as per the 'Tata Red Line Strategy'.
The fund will maintain a 65 per cent to 90 per cent exposure to equity and equity-related instruments including derivatives.

Debt and money market instruments (including margins for derivatives) will have an indicative allocation of 10 per cent to 35 per cent under normal circumstances.

The fund house recently merged its MIP Plus Fund, which is an open-ended income scheme with a retirement savings fund, which is a conservative plan with an open-ended debt scheme.
Moreover, the firm plans to merge few more products in future.
"Since SEBI has been encouraging asset management companies to consolidate different schemes with similar features resulting in fewer numbers of schemes, it has led to operational efficiencies and lower costs due to scale. We have merged Tata MIP Plus Fund with Tata Retirement Savings Fund. We plan to propose a few more in future," he said.