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Tata group launches fund for life sciences, technology

The Tatas joined the bandwagon of promoters of multi-sector equity schemes by launching Tata Life Sciences and Technology Fund. The public can invest in the fund dedicated to recession-proof growth sectors.

The fund is sponsored by Tata Asset Management Company, a joint venture between the Tatas and Dresdner RCM Global Investors Holding of the United Kingdom.

The Tatas hold 80 per cent of the AMC while the balance 20 per cent is held by the Dresdner group. Within the 80 per cent, Tata Finance has a stake of 22 per cent, Tata Sons (29 per cent) and Tata Investment Corporation (29 per cent).

The initial offer period for the new scheme opens on June 7 and closes on June 18. The earliest closing is June 10. The offer will not open later than July 4. The scheme will invest primarily in consumer goods, infotech, engineering, pharma, software and FMCG sectors.

The investor has three choices. A normal investment can be made without a lock-in, an investment with a three year lock-in and one with a seven-year lock-in. The basic purpose is to provide medium-to long-term gains and tax-free dividend for income distribution.

The target amount is Rs 250 million.

Tata Mutual Fund is also planning to float a pension-cum-retirement scheme in the next two months. The application for clearance from the Securities and Exchange Board of India is expected in the near future. The minimum investment will be Rs 10,000 per year with full tax benefit.

UNI

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