Tata and Bajaj Mutual Funds File Draft with SEBI for New Schemes

Tata Income Plus Arbitrage Active Fund of Fund (FOF) and Bajaj Finserv Nifty 50 Index Fund have filed their draft documents with SEBI. Below is a summary of features from both schemes.

Tata Income Plus Arbitrage Active FOF

Tata Mutual Fund has filed for an open-ended Fund of Fund scheme under the active hybrid category. The fund will invest in a combination of debt-oriented mutual fund schemes and arbitrage-based equity mutual fund schemes.

• Investment Objective: Long-term capital appreciation by investing in domestic mutual funds, including debt and arbitrage schemes. No guarantee of achieving the objective.
• Asset Allocation:
  • 55% to 65% in debt-oriented mutual fund schemes
  • 35% to 40% in arbitrage-based equity mutual fund schemes
  • Up to 5% in debt and money market instruments
• Minimum Investment: ₹5,000 (initial), ₹1,000 (additional)
• Exit Load: 0.25% if units are redeemed within 30 days
• Benchmark: 60% CRISIL Composite Bond Fund Index + 40% Nifty 50 Arbitrage Index (TRI)
• Plans: Regular and Direct, with Growth and IDCW (Payout/Reinvestment) options
• NAV Disclosure: Published by 11 PM on the next business day

The scheme will not engage in short-selling or stock lending. SIP, STP, and SWP facilities will be available. The face value per unit is ₹10.

Bajaj Finserv Nifty 50 Index Fund

Bajaj Finserv has proposed an open-ended equity scheme tracking the Nifty 50 TRI. It aims to replicate the index’s performance, subject to tracking error.

• Investment Objective: Replicate returns of the Nifty 50 Index through investment in its constituent stocks.
• Category: Index Fund
• Minimum Investment: ₹500 (lump sum and SIP)
• Exit Load: Nil
• Benchmark: Nifty 50 Total Return Index (TRI)
• Plans: Regular and Direct with Growth and IDCW options
• NAV Disclosure: Before 11 PM on all business days

The scheme offers daily, weekly, fortnightly, monthly, and quarterly SIP options, along with Wealth SIP and SWP facilities.

Conclusion

Both schemes are currently in the draft stage. Once approved, they will offer two distinct approaches – Tata’s hybrid allocation model and Bajaj Finserv’s index-tracking strategy.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments in the securities market are subject to market risks. Read all the related documents carefully before investing.