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Tata Mutual Fund on Tuesday announced the launch of Tata Housing Opportunities Fund -- an open-ended equity scheme based on housing theme. The new fund offer (NFO) will open for subscription today and close on 29 August.

Tata Housing Opportunities Fund will invest in a portfolio of companies that supply materials, products and services that go into building a residential unit.

“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," Tata MF AMC said in its statement.

Minimum investment amount in the fund is 5,000 and in multiple of Re 1 thereafter. There is no entry load and the investor will not bear an exit load if the withdrawal amount or switched out amount on redemption/switch-out/SWP/STP on or before expiry of 365 days from the date of allotment is not more than 12% of the original cost of investment.

“The NIFTY Housing Index (TRI) - is broader, in the sense that it has a wider industry classification. In our view, some of these businesses are indirect beneficiaries of the real estate sector. A large part of our portfolio is expected to be a 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)," fund manager Tejas Gutka said.

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