NFO review: Tata Value Fund Series I, a close-ended mutual fund, launchedTata Mutual Fund has announced a close-ended fund with a tenure of 1,103 days (a little more than three years) named Tata Value Fund Series I. The fund is geared towards a value investment strategy. Value investment is not formally defined anywhere but generally means trying to find undiscovered stocks that are valued lower by the market than what their fundamentals dictate. SEBI has formally introduced a category for open ended value funds. However, this scheme will be close-ended. It opened for subscription on 22nd June and will close on 6th July.

The scheme will invest 80-100% of its assets in equities and the rest in debt. It will be managed by Sonam Udasi who also manages several other Tata AMC funds including Tata Digital India Fund, Tata Banking and Financial Services Fund, Tata Pharma and Healthcare Fund etc. Out of these Tata Digital India, an IT sector fund has emerged as a star performer with a 49% return over the past year.

RupeeIQ Take

Close-ended funds allow the fund manager to identify and hold stocks without the constant threat of redemptions. It can, for this reason, lead to better performance. On the other hand, they are arbitrarily timed. A market rally at the end of the fourth year after a three year stagnation, for instance, will cause investors in the fund to miss out. Value Stocks can take much longer than three years to emerge and achieve their full potential.

Key Details

NFO Period: 22nd June to 6th July

Options: Growth, Dividend Payout

Benchmark: S&P BSE 200 TRI (Total Returns Index)

Minimum Investment Amount: Rs 5000

Tenure: 1103 days

Neil Borate

Neil Borate is Deputy Editor, RupeeIQ. He can be contacted at