The new fund offer or NFO of the scheme is open for subscription and will close on September 2. The scheme will open for continuous sale and repurchase on September 11.
The scheme will be benchmarked against the Nifty200 Alpha 30 Index (TRI) and will be managed by Kapil Menon.
The fund aims to track the performance of top 30 high alpha companies within the Nifty200 index. The alpha-based passive investment strategy seeks to benefit from ongoing market trends. It adjusts to changing market conditions and increases coverage and weighting of outperforming sectors/stocks and underweights underperforming sectors/stocks.
The minimum investment amount is Rs 5,000 and thereafter in multiples of Rs 1. An exit charge of 0.25% of the applicable NAV will apply, if redeemed on or before 15 days from the date of allotment. The maximum Total Expense Ratio (TER) permissible under Regulation 52(6)(d)(ii) is up to 1%.
Based on the alpha factor, the fund identifies and includes stocks that generate returns in excess of the broader market and risk-free returns, giving more weight to stocks that generate high excess returns per unit of risk. “This strategy aims to capture additional returns than what the Nifty200 index could provide by selecting the top 30 stocks that can generate alpha. This is another differentiated offering from us with a view to building our product portfolio. We believe this could add value to clients in building and diversifying their investment portfolio,” said Anand Vardarajan, Chief Business Officer, Tata Asset Management. The scheme will allocate 95-100% to securities covered by the Nifty200 Alpha 30 index and 0-5% to debt/money market instruments, including bond units. mutual fundsThe fund is ideal for investors who want to invest in a passively managed fund by investing in a portfolio of companies that are part of the Nifty200 Alpha 30 index.
The scheme is suitable for investors seeking long-term capital appreciation and wish to invest in equities and equity-related instruments including the Nifty 200 Alpha 30 index. The capital invested in the scheme will be at “very high” risk as per the risk meter of the scheme.
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