Date:15/10/2004 URL: http://www.thehindubusinessline.com/2004/10/15/stories/2004101502131500.htm

Back Tata MF launches Dividend Yield Fund

Our Bureau

Mumbai , Oct. 14

TATA Mutual Fund is launching its Dividend Yield Fund. The open-ended equity fund would invest at least 70 per cent of its net assets in shares with dividend yields higher than those of Sensex, at the time of investment.

Birla Sun Life AMC first launched its dividend yield fund. Recently, Principal PNB also completed the initial public offerings (IPO) for its dividend yield fund.

The IPO for the scheme will remain open till October 27.The company is seeking to collect Rs 500 crore from one lakh investors during the IPO, said Mr Ved Prakash Chaturvedi, Chief Executive Officer, Tata Mutual Fund.

The minimum investment required for the fund is Rs 5,000 and carries an entry load of 2.25 per cent for investments less than Rs 2 crore.

The fund house has also obtained the necessary regulatory clearances for starting its wealth management services. The service will be launched by the end of November , said Mr Chaturvedi. The minimum investment amount for the service is Rs 50 lakh.

Wealth management services will be offered through four different products — conservative, balanced, aggressive and principal protection.

The service would initially be available in eight centres, Mr Chaturvedi added.

As part of its expansion plans, the asset management company is looking at opening its own branch in 60 centres across the country.

Currently, the fund house has 20 centres.