Tata Mutual Fund launches "Tata Service Industries Fund"
February 11, 2005

Tata Mutual Fund announced the launch of a new mutual fund scheme, the Tata Service Industries Fund, an open-ended equity fund, which aims to invest predominantly in equity or equity related instrument of companies in the service industries. This would comprise a group of service providing industries like IT-enabled services, healthcare, tourism and hotels, communications, media and entertainment, trade and retail, banking and financial services, transportation and logistics, etc.

The initial issue period for the scheme has started from February 9, 2005 and the closing date for the issue is March 10, 2005.

Speaking on the occasion, Ved Prakash Chaturvedi, managing director, Tata Mutual Fund, said, "Services form the mainstay of the Indian economy today with service industries contributing to over 50 per cent of the country's GDP. Fuelled by a consumer boom in the domestic market and increasing global outsourcing opportunities based on our competitive advantage across service industries, the average growth in services has exceeded that of the overall GDP over the past decade."

"Tata Service Industries Fund would be a suitable option for those investors who share our view that an accelerating growth in services would lead to value creation in the long term", he added.

Tata Service Industries Fund would be available under two options — dividend option with minimum application of Rs 5,000/- and in multiples of Re 1 and the growth option, also having a minimum application of Rs 5,000/-

Tata Service Industries Fund Features:

• An open-ended equity fund. The investment objective is to provide income distribution and / or medium to long term capital gains by investing predominantly in equity / equity related instrument of the companies in the services sector.
• The fund would invest at least 70 per cent of net assets in equity / equity related instrument of companies in the services sector.
• It can also invest upto 30 per cent of net assets in debt / money market instruments for providing ongoing liquidity and preservation of capital.
• Two options for investment. Dividend option and growth option: Minimum application of Rs 5,000/- and in multiples of Re 1/- thereafter for each application for both the options.
• Sale at face value of Rs 10/- plus applicable load during the initial offering period and thereafter resale / repurchase / switch at prevailing NAV with the applicable load on all business days after scheme reopens for ongoing sales. Applicable loads: During initial public offer (IPO) and for on going sales entry load (other than SIP): For each investment amount < Rs 2 Crores: 2.25 per cent. For each investment amount >= Rs 2 crore: Nil. No entry load will be charged on investment made by the Fund of Funds Scheme. Entry load (For SIP)
• No entry load. Exit load (other than SIP): Nil. Exit load (for SIP): If redeemed on or before expiry of 365 days from the date of allotment: 2.25 per cent. If redeemed after 365 days from the date of allotment: Nil. IPO expenses: IPO expenses not exceeding 6 per cent of the amount mobilised will be charged to the scheme. Entry load collected during the initial offer period shall be used to meet initial issue expenses. ( *Systematic Investment Plan. SIP facility would be available after scheme reopens, Conditions apply.) Statutory Details: Constitution: Tata Mutual Fund has been set up as a trust under the Indian Trust Act, 1882. Sponsors & Settlors: Tata Sons Ltd., Tata Investment Corporation Ltd. Investment Manager: Tata Asset Management Ltd. Trustee: Tata Trustee Co. Pvt. Ltd.

Risk factors:

• Mutual fund and securities investments are subject to market risks and there can be no assurance and no guarantee that the scheme will achieve its objectives.
• As with any investment in stocks, shares and securities the NAV of the units under the scheme can go up or down, depending upon the factors and forces affecting the capital market. * Past performance of the previous schemes, the sponsors or its group affiliates is not indicative of and does not guarantee the future performance of the scheme.
• Tata Service Industries Fund is only the name of the scheme and does not in any manner indicate either the quality of the scheme, its future prospects or the returns.
• The sponsors are not responsible or liable for any loss resulting from the operations of the scheme beyond the initial contribution of Rs.1 lac made by them towards setting up the mutual fund.
• Investment in fixed income securities are subject to interest rate risk, credit risk and liquidity risk.
• The scheme being sector specific will be affected by risks associated with the services sector. For scheme specific risk factors and other details please read the offer document of the scheme carefully before investing. For offer document and application forms, please contact your nearest collection center / AMC office.