Tata India Innovation Fund NFO, Overview, Details

Tata India Innovation Fund: Overview

Tata Mutual Fund introduces the Tata India Innovation Fund. Under Tata Asset Management (Tata AMC) the price is set at Rs.5000 and in multiple of Rs.1 thereafter. This new fund offer is for those who want to benefit from innovative technologies and is available for subscription from November 11, 2024, to 25 November 2024. This open-ended scheme will follow the innovation theme. 

80 to 100% equity and equity-related instruments of companies following innovation theme, 0-20% equity and equity-related instruments (mutual funds units included), 0-20% in debt and money market securities (mutual funds units included), and 0-10% in REITs and InvITs.

This mutual fund scheme reopens for sale and repurchases on 05 December 2024 and carries a very high risk.

 

Fund Objective

The scheme's investment goal is to give investors long-term capital appreciation prospects by investing in stock and equity-related instruments of businesses that aim to profit from the adoption of novel themes and tactics.

For more information about this new NFO Mutual Fund keep reading.

Click Here To Stay Updated With The Upcoming NFO.

 

Fund Overview

Fund Strategy

Invest in the Future: The fund's objective is to build a bottom-up portfolio of businesses driven by innovation, emphasizing both small and large-scale advances.

Innovation Types: Businesses that are making major, game-changing breakthroughs (breakthrough innovation) and those that are continuously improving their current goods, services, or procedures (incremental innovation) will both receive investments from the fund.

Stock Selection Philosophy: Choosing Stocks Growth at a Reasonable Price (GARP) is the fund's guiding principle.

 

Portfolio Construction: 

• Companies that are innovating in a variety of products, services, and business models will be included in the investing universe.

• The fund will evaluate the growth potential and valuation comfort of companies that meet the criteria for participation in the portfolio if they qualify as either Breakthrough Innovation or Incremental Innovation.

• The fund will look for investment opportunities in a range of sectors and market capitalization.

 

Tata India Innovation Fund Minimum SIP

The minimum SIP amount for this fund is Rs.100.

Scheme Plan: 

Tata India Innovation Fund-Direct

Tata India Innovation Fund-Regular

 

Tata Mutual Fund Details

• AUM of Rs.147169.65 lac crore.

• Established in 1994

 

How to Invest in the Scheme After the Closure of the NFO?

If you have missed participating in the NFO and now want to invest in the same Scheme on a continuous basis, then on 05 December 2024, when the Scheme will reopen; you will have the option to participate and invest directly in the Mutual Fund by spending at NAV based price by logging on to your Demat account and search for “Tata India Innovation Fund” or directly with the AMC or simply click the ‘Banner’ below.

 

 

Asset Allocation (% of Total Assets) of the Scheme's portfolio will be as follows:

 

Peers of Tata India Innovation Fund

Since this scheme is new, hence no comparable data on its past performance against its peers is available.

 

Risk Factors in Such Funds

• At least 80% of the Scheme's net assets will be invested in equity or equity-related instruments of companies that are using or are anticipated to benefit from the adoption of novel themes and techniques. Since the scheme is themed, the risks related to the theme or sector will have an impact on it.

• Concentration risk is anticipated to be considerable because the scheme would invest in equity and equity-related instruments of businesses involved in the specific industry or topic.

• The risk of capital loss is greater for thematic or sectorial schemes due to the high concentration risk.

 

Past Performance of Innovation Funds

 

Tata India Innovation Fund-Fund Managers

• Meeta Shetty.

• Kapil Malhotra.

Conclusion

The Tata India Innovation Fund is one exciting opportunity that awaits those who believe in the power of innovation and want to benefit from it in the long run. This high-risk, high-reward fund is focused on investing in companies that would place a heavy emphasis on breakthrough and incremental advances. Investors should assess their risk tolerance before investing.

Disclaimer: No buy or sell recommendation. No investment advice it is. This NFO analysis is provided solely for informative purposes and should not be considered investment advice. Always conduct research and talk with a financial advisor before investing.