Tata MF launches close-ended Capital Builder Fund
The Hindu Business Line — July 18, 2006

Tata Mutual Fund on Monday announced the launch of a close-ended Tata Capital Builder Fund with a weekly exit option.

The investment objective of the scheme is to generate capital appreciation over a period of three years by investing predominantly in equity and equity related instruments of companies across market capitalisation.

Upon completion of three years (close-ended phase), the scheme will automatically be converted into an open-ended scheme, the company said in a release.

"The opportunity presented by a growing economy, growing companies and a vibrant stock market has potential for medium term capital building," said Tata Asset Management Ltd managing director V P Chaturvedi.

On one hand, sectors like telecommunications, information technology, engineering, etc. have witnessed sustained earnings growth over the last few years. Medium term outlook for these sectors seems positive given current growth trends, he said.

On the other hand, sectors such as metals, cement and automobiles are going through an investment cycle to significantly expand capacities. Once these capacities come on stream over the next few years, their value creation potential can get realised, said Chaturvedi.

The scheme will invest minimum 70 per cent of the fund raised, and is further extendable to 100 per cent in the equities.

Available with the options of dividend and Growth plan, the new fund offer remains open for subscription from today till August 18.