As you know, a few weeks ago, I announced the launch of Unovest – a mutual fund direct plan investing platform.
Unovest will also be the place where you can find specific information and insights into mutual fund investments.
Everything that can help you build wealth using mutual funds as a tool will be available on Unovest.
Today I am sharing with you an article from the Unovest Blog.
Should you be investing in the Tata Mutual Fund’s New Fund Offer – Own a piece of India?
Welcome to the (financial) jungle!
Tata Mutual Fund (Tata MF) has recently announced its New Fund Offer (NFO) of “Own a Piece of India”.
Let’s dissect this Tata Mutual Fund NFO and see if it deserves your money.
Highlights of the Tata Mutual Fund NFO
This umbrella theme comprises of 5 NFOs and 1 Existing Scheme.
The 5 New Funds are:
- Tata Banking and Financial Services Fund
- Tata India Consumer Fund
- Tata Digital India Fund
- Tata India Pharma & Healthcare Fund
- Tata Resources & Energy Fund
The 6th fund under the umbrella is the Tata Infrastructure Fund. This is an existing scheme from Tata MF.
The 5 new funds are all sectoral funds. The infrastructure fund too, as the name suggests, is a thematic fund. Together, they represent the potential growth areas of the Indian economy. As the fund house says, you too can “own a piece” of this growth story.
Further, you can create your custom diversification across these sectoral and thematic funds.
You can decide which of the above funds you want to invest in and how much, subject to a minimum of Rs. 5000 per scheme. You can do this all by giving a single cheque and a single application form.
The thing to understand about Sectoral or Thematic Funds
In a typical diversified equity fund, which can invest anywhere, the fund manager based on his research and understanding decides in which sectors and stocks to invest and how much.
However, in case of sectoral funds, you as an investor have to take a call on which sector you believe will do well and thus invest….
No point in even looking at an NFO when you have already so many funds available with track record to look at. And i am surprised how can they even launch it with SEBI asking them to merge existing schemes which are redundant.
Bulls eye, Gagan!