Tata Ethical Fund

Target Investors: This product is suitable for investors who need long term capital appreciation and to those who wish to invest in equity and equity related instruments of companies who are Shariah compliant.

Benchmark

CNX 500 Shariah is the benchmark.

S&P CNX Shariah is a partnership between Standards and Poors and India Index Services & Products. The S&P CNX 500 Shariah is derived from the S&P CNX 500, which is the complete benchmark for the Indian stock market. The S&P CNX Shariah was introduced to capture the movement of Shariah compliant stocks in the Indian stock market for the Islamic investors.

SWP

Yes Systematic Withdrawal Plan is available in monthly and a basis.

Minimum withdrawal amount is Rs.500.

STP

Yes, STP is available for this scheme.

Redemption

Minimum redemption amount per units is Rs.500 per 50 units.

Taxation (on investment and on redemption)

Each investor is advised to consult with his own tax adviser with respect to the specific amount of tax and other implications arising out of his participation in the scheme.

Fund manager

Mr. Pradeep Gokhale manages Tata Ethical Fund. HE has over 21 years of experience. He has a B.Com, CA and a CFA degree. Before joining Tata Asset Management Ltd., Pradeep worked with Lubrizol India, Tata International Ltd. Bombay Dyeing in the Finance and taxation department. He was the Deputy General Manager with Credit Analysis and Research Ltd. He later joined Tata Asset Management Ltd. as a Deputy General Manager for Investment in the year 2004.

Investment philosophy or strategy

Tata Ethical Fund is a diversified equity fund with an investment objective to invest in stocks which are compliant to the Shariah principles of investments. The scheme follows a bottom up approach to stock picking to build portfolio of companies which are Shariah compliant. Tata Ethical Fund prohibits investment from companies that are morally deficient, such as those related to tobacco, alcohol, gambling, lottery, banking & finance services and other prohibited companies.

Portfolio - Sector / Top 10 holdings

Risk measures

Expert view of the fund + outlook

Tata Ethical Fund aims to provide medium to long term capital gains by investing in Shariah compliant equity and equity related instruments of the growth oriented companies. This scheme is suitable for creating wealth and for meeting lifestyle needs. Don't invest in this fund if you want to fund your child's education, child's marriage, for retirement or to buy a house. The returns on this scheme are tax free provided that you do not withdraw in a year. If you have invested in this fund, then keep a close watch. But if you are new investor then skip this fund. However, if you are looking for a Shariah compliant scheme, this is the one. It does not invest in companies such as those related to tobacco, alcohol, gambling, lottery, banking & finance services and other prohibited companies.

How to apply - online + distributors

You can buy the Tata Ethical Fund through both the online and offline platforms.

For applying through the online platform, visit the Tata Mutual Fund website and transact. IF you are an existing customer, then you need to use the PIN that was provided to you. You can also transact with just your username detail or without a PIN as well. But, if you are a new customer, then invest after submitting your KYC Form. You can also check the status of your transaction on the main webpage.

In order to apply offline, you will have to physically approach the Tata Asset Management branch and submit your KYC form, after which you will have to fill up the application forms and then submit it at the respective counter. When you approach the bank, you can meet with the executive in charge and find out more about the scheme that you are applying for and then take an informed decision on which scheme that would best suit your needs.

GST rate of 18% applicable for all financial services effective July 1, 2017.