Tata Equity P/E Fund aims to raise Rs 400 cr investment

Tata Asset Management Pvt Ltd aims to garner investments of Rs 400 crore from over 50,000 investors through the initial public offering of its Equity P/E Fund.

"We expect investments of around Rs 400 crore from over 50,000 investors. The Equity P/E Fund is an open-ended equity fund, which aims to provide reasonable and regular income along with possible capital appreciation to its unitholder," said Ved Prakash Chaturvedi, chief executive officer, Tata Asset Management, a Tata Mutual Fund firm.

The fund aims to invest at least 70 per cent of its assets in shares whose price-earnings ratio is less than the Sensex'. A maximum of 20 per cent will be invested in debt and money market instruments.

The fund would invest both in companies which are part of the BSE Sensex and in those which are not.

"The fund will evaluate whether the company it invests in is worthy of it. The factors that determine the investment worthiness of a company include management competitiveness, business competitiveness, growth prospects and other fundamental parameters," said Chaturvedi.

The company is one of India's fastest growing fund management firms with more than Rs 5,000 crore of assets under management at the end of the last financial year from over three lakh investors, the company said.

Out of these Rs 5,000 crore, the company's investment in equity stands at Rs 900 crore, while the balance Rs 4,100 crore is invested in debt, gilt and money markets, the company said.

With eight equity funds, two balanced funds and nine debt funds, the company has a comprehensive range of products across the risk-reward spectrum, it said.

The Tata Equity P/E Fund initial offer period is open till June 15.

Apart from the latest launch of Tata Equity P/E Fund, the company's other equity funds include, Tata Pure Equity Fund, Equity Opportunities Fund and Life Sciences & Technology Fund, Select Equity Fund, Tax Saving Fund, Index Fund, and Growth Fund.

Debt fund include Tata Income Fund, Gilt Securities Fund, Short Term Bond Fund, Income Plus Fund, Dynamic Bond Fund, Floating Rate Fund, Liquid Fund, Monthly Income Fund and MIP Plus Fund.

The company also has two balanced funds "" Tata Balanced Fund and Tata Young Citizens' Fund.