Tata Mutual Fund launches ‘Tata Mid Cap Fund’
May 31, 2005

Tata Mutual Fund announced the launch of a new mutual fund scheme, the Tata Mid Cap Fund, an open-ended equity fund, which aims to invest predominantly in equity or equity related instrument of mid cap companies. The companies to be considered for investment in this scheme are either included in the CNX Midcap 200 index or ones that fall within the market cap requirement of CNX Midcap 200 index.

The initial issue period for the scheme has started from May 19, 2005 and the closing date for the issue is June 15, 2005.

Speaking on the occasion, Ved Prakash Chaturvedi, managing director, Tata Mutual Fund, said, “the buoyancy and growth in mid cap companies stand testimony to the structural change witnessed by the Indian industrial landscape. Our sense is that many of these companies present good opportunities for long term growth and wealth creation, on the back of a disciplined and research based stock picking approach.”

“However, a rigorous analysis of the spectrum of mid-cap stocks available would show that all those which would perform in a rising market would not be fundamentally strong. We expect our proven expertise in stock picking and a strong risk management framework to help us in picking the right stocks and creating long term value in this fund,” he added.

Tata Mid Cap Fund is available under two options — Dividend Option with minimum application of Rs 5,000/- and in multiples of Re 1 thereafter and the growth option, also having a minimum application of Rs 5,000/- and in multiples of Re1 thereafter. There is no entry load for each investment upto Rs 5 lakh during the initial offer period in order to encourage retail investment into the fund.

Features: 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. Nature and Investment Objective: 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 mid cap companies. Asset Allocation: The fund would predominantly invest (atleast 65%) in equity / equity related instrument of mid cap companies. Can also invest upto 35% of net assets in debt / money market instruments and securitised debt instruments for providing ongoing liquidity and preservation of capital. Can also invest upto 35% in other stocks. Two options for investment: Dividend Option and Growth Option: Minimum application of 5,000/- and in multiples of Re.1/- thereafter for each application for both the options. Units available at face value Rs. 10/- plus applicable load during the IPO and at relevant NAV based resale price with applicable loads. Applicable Loads: During Initial Public Offer (IPO) Entry Load : For Each Investment amount <= Rs. 5 lakhs : Nil. For Each Investment amount >Rs 5 lakhs and < Rs 2 crore : 2.25%.For Each Investment amount >= Rs 2 crores and less than Rs 5 crore :Nil. For Each Investment amount >= Rs 5 crore : Nil. No entry load will be charged on investment made by the Fund of Funds Scheme. Exit Load: For Each Investment amount <= Rs. 5 lakhs : 2.00% if redeemed before 180 days from the date of allotment. For Each Investment amount >Rs 5 lakhs and < Rs 2 crore : Nil. For Each Investment amount >= Rs 2 crores and less than Rs 5 crore : 0.25% if redeemed before 90 days from the date of allotment. For Each Investment amount >= Rs 5 crore : Nil. IPO Expenses: IPO expenses not exceeding 6% 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. 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 Mid Cap Fund is only the name of the scheme and does not in any manner indicate either the quality of the scheme or its future prospects and the returns. Investors are urged to study the terms of the offer carefully and consult their investment advisor before they invest in the scheme. 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. Trading volumes and settlement periods may restrict liquidity in Equity and Debt Instruments. In case of Mid Cap companies, such liquidity risks are likely to be high. Further prices of stock in mid cap companies are also likely to be more volatile.

For scheme specific risk factors and other details please read the offer document of the scheme carefully before investing. For Offer Document & Application forms, please contact your nearest Collection Center / AMC Office. (Systematic Investment Plan facility would be available after scheme reopens, conditions apply).