Tata Mutual Fund recently launched Tata Housing Opportunities Fund, which is an open-ended equity scheme following a housing theme. The New Fund Offer (NFO) opened on 16th August 2022 and will close on 29th August 2022. Tata MF said the NFO offers a “good” long-term investment opportunity. It will track NIFTY Housing Index (TRI).

“One of the places that we spend the most amount of money on is our house. Think about all the things that go into making a home – cement, steel, paints, tiles, electricals, plumbing, bathware, etc. A number of companies that make these products are listed in the Indian equity market. Most of these are good quality businesses that offer reasonable growth prospects as well. Thus, the housing theme offers a good long-term investment opportunity,” the company said in a statement. 

Where will the fund invest?

Tata Housing Opportunities Fund will invest in a portfolio of companies that mainly supply the materials, products, and services that go into building a house. For investors, this could be an opportunity to create wealth by investing in companies whose products you may purchase.

“This is a more structural offering rather than a time-bound tactical portfolio. Many of the companies that fit into this theme also benefit from the demographic dividend of our country in the form of a rising per-capita income, increasing urbanisation, rising middle class, nuclear families, young and educated workforce etc. Thus, the portfolio would qualify as a good long-term investment,” said Tejas Gutka, fund manager of Tata Housing Opportunities Fund.

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“A large part of our portfolio expected to be direct beneficiary of a housing up-cycle and as such, our portfolio will have a reasonable divergence from the benchmark. We will thus focus on more bottom-up stock selection based on our research framework. The overall portfolio will be guided by our house philosophy of Growth-At-A-Reasonable-Price (GARP),” he added. 

Key dates

The NFO is open since 16th August 2022 and will close on 29th August 2022. 

Minimum investment required

You can invest in this fund with a minimum of Rs 5,000 and in a multiple of Re.1 thereafter.

Should you invest?

Tata Housing Opportunities Fund aims to generate long-term capital appreciation by investing predominantly in equity and equity related instruments of entities engaged in and/or expected to benefit from the growth in housing theme. 

However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved. The scheme does not assure or guarantee any returns.

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Mutual funds are also subject to market risks. You should consult your financial advisor before making any investment decision. Further, you should read all the scheme-related documents carefully.