Tata Mutual Fund launches Tata Multi Asset Opportunities Fund
Mumbai: Tata Mutual Fund launches 'Tata Multi Asset Opportunities Fund', the first in the mutual fund industry investing in exchange traded commodity derivatives. This comes after SEBI's nod to mutual funds to expand into commodity derivatives - Tata Asset Management will be the trendsetter in the Indian mutual fund industry.
This fund will invest broadly in the three asset classes – Equity, Commodity Derivatives and Debt as each of these asset classes present a unique proposition to the investor. Indian commodity spectrum has been primarily focused on gold. Exchange-traded commodity derivatives (ETCDs) allow the investor to opt for other commodities like base metals, agricultural commodities, industrial chemicals, crude oil, etc.
Following SEBI guidelines, the fund will invest up to 25% of its Asset Under Management (AUM) in ETCDs where a single commodity exposure is 10% of the AUM.