Tata MF Enters Titanium SIF with New Hybrid Long-Short Strategy

Tata Mutual Funds, a leading and well-established mutual fund house, has launched its first Specialised Investment Fund (SIF) under the Titanium brand. The fund introduces a hybrid long-short strategy that skillfully combines equity, debt and derivative exposures to help investors navigate varying market phases and achieve improved risk-adjusted returns. This innovative approach also allows investments in fixed income securities & Real Estate Investment Trusts (REITs).

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New Fund Offer (NFO)

The NFO opens Monday and targets investors with a higher risk appetite. It requires a minimum investment amount of Rs 10 lakh across the SIFs at the PAN level within the Asset Management Company (AMC). The fund commits at least 25% each to equity and debt, with a maximum of 25% unhedged exposure to short instruments. This provides the flexibility to participate in market upswings through long positions while cushioning downturns with shorting and arbitrage and generating potential returns from debt.

Anand Vardarajan, Chief Business Officer at Tata Asset Management, highlights that markets are bullish about 65% of the time and bearish or flat for the remainder. This SIF from Tata mutual funds uses a hybrid strategy to help investors in both rising and falling markets. It does this by using derivatives and short selling. Suraj Nanda, the Fund Manager of Titanium SIF, explains that the fund aims to provide returns that are adjusted for risk while also reducing volatility. It takes a flexible long-short approach to achieve these goals.

Investors committing to Rs 10 lakh can also start SIP (Systematic Investment Plan) with a minimum of Rs 1,000 installments over at least 6 months, with top-ups of Rs 500 or more. The fund will publish Net Asset Value (NAV) daily. However, redemptions are permitted only on the first of the month, while fresh investments can be made on any working day.

The Tata Mutual Funds are launching the new Titanium SIF. This product focuses on innovation & research to meet specific investor needs. It emphasizes careful planning, flexibility and long-term wealth creation through different market conditions.

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