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Tata Infrastructure Fund
Often it is seen that many investors hold on to their investments without booking profits and do not realize the gains that would have accrued on account of market movements.
 
Investors normally look to maximize the capital appreciation from their investments. However a smarter way of investing is to book profits from time to time and reinvest the profits in stable instruments. The rationale for this is plain and simple. Since volatility is second nature to equity markets, they do not necessarily move upwards all the time. Hence unless gains are booked at different points during the upward trajectory, there exists the possibility of an opportunity loss for the investor. Therefore it is imperative to fix levels for booking profits. But this is easier said than done. An investor will have to consistently monitor his investments to find out whether the target level is reached and then will need to follow the usual cumbersome formalities for redemption or switch.
 
Introducing the “Trigger” Facility under Growth option of Tata Infrastructure Fund:
 
With this facility, you can now book profits with just a tick. Simply opt for the Trigger option in the application form. The options available are 5% or 10% levels of the appreciation amount. You may choose to either redeem the appreciated amount or switch the same into Tata Floater Fund - Growth. Thus this facility enables you to book profits when the markets move up so that you are not left with any regret when the market moves southwards.
 
Few reasons that makes trigger facility a suitable proposition:
 
  • Pre-determined targets of 5% and 10% helps you book profits in a disciplined manner.

  • Multiple trigger facility will ensure repeated automatic profit booking at the pre-set trigger level as chosen by you.

  • Pre-set triggers serve as an effective hedging tool against the volatile nature of equity investments.

  • Helps you to make a rational investment decision while keeping your emotions and sentiments at bay.

  • The appreciated amount if switched into Tata Floater Fund - Growth would help to automatically rebalance your portfolio.
How does this facility work?
 
 
Illustration on how the 10% Trigger Facility will work:
 
 
Assuming NAV of Rs. 10 for illustration purpose only. Actual allotment of units will be based on the prevailing NAV at the time of subscription.
 
  1. Receipt of application at NAV Rs. 10. Trigger registered for NAV Rs.10. This will be irrespective of the Price per unit. i.e. the base level for the first trigger will be Rs. 10.

  2. NAV reached Rs. 11 and therefore trigger is enabled.

  3. Calculation of appreciated amount: Rs. (11-10) * 1000, also units reduced 90.909 i.e. 1000.00/ 11

  4. Next trigger level is reset to Rs. 12.1000 i.e. Rs. 11*10%

  5. Next trigger level at Rs. 12.1000 based on the calculations in Step 2 and 3. The next level of trigger reset to Rs. 13.3100 i.e. (Rs. 12.1000* 10%)

  6. Additional purchase of Rs. 5000/- at NAV Rs. 12.5000. Number of units increased to 1226.446

  7. Next trigger level achieved at Rs. 13.3100 NAV

  8. Please note here the calculation of appreciation (Rs. 13.3100 – Rs. 12.1000)*1226.446 = 1484.00 here despite there is a transaction received at 12.2500 the trigger at Rs. 13.3100 will be applicable for this transaction as well. Next trigger level reset to Rs. 14.6410.

  9. Redemption request for Rs. 5000/-

  10. & 11. Next trigger execution.
Applicability:
The trigger facility is applicable on
  • Additional investments made by the existing investors.

  • Fresh investments made by new investors, and

  • Switch-in from other schemes by existing investors.
This facility is applicable for investments made on or after July 10, 2009 for a minimum investment amount of Rs. 5000/-.
Please note this facility is not applicable on existing investments including Systematic Investment Plan (SIP) and Systematic Transfer Plan (STP) or fresh SIP and STP investments.
Instructions:
  • The trigger facility is available only for Tata Infrastructure Fund – Growth option.

  • This feature will be applicable for purchase / switch-in applications of minimum purchase amount of Rs. 5000/-.

  • a)  This feature will be applicable for purchase / switch-in applications of minimum purchase amount of Rs. 5000/-.
    b)  For switch-in transactions received with the trigger option,
    i) Incase the Folio already has an investment in Tata Infrastructure Fund – Growth option a separate folio will be created for the investment.
    ii) Incase the Folio does not have investments in Tata Infrastructure Fund - Growth option, the scheme will be created in the same folio for the investment.

  • The investor can choose any one of the following % target appreciation: 5% or 10%. The trigger level ones selected cannot be changed.

  • The default trigger level is 10%. The default trigger option is switch to Tata Floater Fund - Growth option.

  • Trigger requests without transaction (i.e. additional purchase / switch-ins) will not be processed.

  • Requests for extending trigger facility in the existing folio cannot be considered.

  • Trigger level will be calculated on the applicable NAV on the date of receipt of the first subscription application form (purchase /additional purchase/ switch-in) with the trigger request.

  • The calculation of the gain will be using the formula: (Trigger NAV – previous trigger NAV) * Number of units

  • Subsequent triggers will be captured with the NAV as on the previous trigger date as a base.

  • Any subsequent purchase received in this new folio will follow the triggers set based on the first such trigger transaction, irrespective of the NAV of the subsequent purchase.

  • The redemption / switch of units will be based on First-In-First-Out (FIFO) basis.

  • NAV for switch /redemption: NAV of the trigger day will be considered for the purpose of redemption/ switch. In case of non business day in debt schemes but business day for equity schemes, switch-out from Tata Infrastructure Fund – Growth Option will be processed on the trigger day and switch-in to Tata Floater Fund – Growth option will be processed on the next business day.

  • The triggers will continue till such time the investor gives a request to cancel the Trigger facility.

  • In case of cancellation of the trigger facility the Unit holders will have to give a written request duly signed by all unit holder/s to our offices / service centers. The AMC will require at least 10 business days from the date of submission of such request to process the cancellation of the facility. On receipt of such request, the said facility will be terminated and notified to the unit holder. In case a trigger is activated in the interim period before ceasing the request the switch / redemption transaction will be processed.

  • The redemption / switches request from Tata Floater Fund - Growth option can be made for a minimum of Rs. 1000/- / 100 units or in multiples of Rs.1/- thereafter or for all the Units.
Load Structure:
 
Download Application Form   Tata Infrastructure Fund - SID
Download Scheme Brochure   Tata Floater Fund - SID
 
 
Risk Factors specific to trigger facility:: There is no guarantee or indication that the scheme will generate the triggered returns. • Investors are not being offered any assurance or indication of any minimum amount of capital appreciation or minimization of losses. The scheme, into which the triggered value is switched into, is subject to the respective risks of that scheme including but not limited to Interest Rate risk, liquidity or marketability risk, credit risk, reinvestment risk, etc. Investors are requested to read the Scheme Information Document of the scheme carefully before investing. • Securities transaction tax as applicable may be chargeable. Investors are advised to consult their Tax Advisors in regard to legal implications relating to their investments in the Scheme. • The new facility introduced under the scheme will have the same investment objective, portfolio, liquidity and expense ratio as that of existing plans / options of the scheme. Disclaimer: Trigger facility in any manner whatsoever is not an assurance or guarantee on part of Tata Mutual Fund (TMF) / Tata Asset Management Limited (TAML) to the unit holders in terms of returns or capital appreciation or minimization of loss of capital or otherwise. TMF / TAML shall not be responsible if the trigger is not achieved and / or implemented due to reasons which are beyond the control of TMF / TAML such as technology failure / default etc. Further, this trigger facility shall be subject to terms and conditions as outlined in the application form of the scheme. Trigger facility being an additional facility can be withdrawn at any time at the discretion of Trustees. Nature & Investment Objective: Tata Infrastructure Fund: An open ended equity scheme. The investment objective is to provide income distribution and / or medium to long term capital gains by investing predominantly in equity / equity related instrument of companies in infrastructure sector. Tata Floater Fund: Nature & Investment Objective: An open ended debt scheme, the investment objective of the scheme is to generate stable returns with a low interest rate risk strategy by creating a portfolio that is predominantly invested in good quality floating rate debt instruments, money market instruments and in fixed rate debt instruments which can also be swapped for floating rate returns. Load Structure for Tata Infrastructure Fund: Exit Load (including SIP): For each investment amount less than Rs. 5 Crores: - 1.00% of applicable NAV, If redeemed on or before expiry of 36 months from the date of allotment- Nil if redeemed after expiry of 36 months from the date of allotment. For each investment amount greater than or equal to Rs. 5 Crores: NIL. Tata Floater Fund: Exit Load (including SIP): NIL. Statutory Details: Constitution: Tata Mutual Fund has been set up as a trust under the Indian Trust Act, 1882. Sponsors & Settlors: Tata Sons Ltd., Tata Investment Corporation Ltd. Investment Manager: Tata Asset Management Ltd. Trustee: Tata Trustee Co. Pvt. Ltd. Risk Factors: Mutual Fund and securities investments are subject to market risks and there can be no assurance and no guarantee that the scheme will achieve its objectives. As with any investment in stocks, shares and securities the NAV of the units under the scheme can go up or down, depending upon the factors and forces affecting the capital market. Past performance of the previous Schemes, the Sponsors or its Group affiliates is not indicative of and does not guarantee the future performance of the Scheme. Tata Floater Fund and Tata Infrastructure Fund are only the name of the schemes and does not in any manner indicate either the quality of the scheme, its future prospects or the returns. The sponsors are not responsible or liable for any loss resulting from the operations of the scheme beyond the initial contribution of Rs.1 lac made by them towards setting up the Mutual Fund. Investment in fixed income securities are subject to interest rate risk, credit risk and liquidity risk. Tata Infrastructure Fund being sector specific will be affected by risks associated with the Infrastructure Sector. This is not a guaranteed return scheme. For scheme specific risk factors and other details please read the Scheme Information Document/Statement of Additional Information/Key Information Memorandum of the scheme carefully before investing.
 
 
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