Tata Mutual Fund has today announced the launch of its 3 years close ended income scheme called Tata Dual Advantage Fund - Scheme A.
The scheme aims to generate income by investing in a portfolio of fixed income instruments having maturity on or before the date of the maturity of the scheme. The scheme will also invest its small portion in equity and equity related instruments including derivative instruments so as to generate capital appreciation.
The new fund offer for Tata Dual Advantage Fund - Scheme A will be open from June 14, 2013 to June 28 2013.
“The strategy involves investing predominantly in fixed income instruments and equity & equity related instruments which may include investments in long call options closest to the maturity of the scheme. The buying of call options enables the scheme to deliver returns when the equity market is up while minimizing the risk of capital loss in case of negative movement of the equity market. The fixed income investments would aim to generate accrual income”, said a press release.
The minimum investment amount is Rs 5000. The scheme will be listed on BSE in order to provide liquidity to the investors. The benchmark of the fund is CRISIL MIP Blended Index. Amit Somani (debt) and Pradeep Gokhale (equity) will co-manage the fund.
