ABOUT SHARIAH

Shariah principles require the investments to be based on certain norms and filters related to the public need, fairness in business, and ethical source of income.

SHARIAH COMPLIANT UNIVERSE

The universe of stocks that the fund invests in is built by screening out all those companies and sectors whose practices or products are forbidden by Shariah Principles. Further screening is done based on certain financial parameters. This screening is carried out with the advice and assistance of an independent adviser.

KEY FEATURES OF SHARIAH BASED INVESTMENTS AS RECOMMENDED BY SHARIAH ADVISOR

Sector based filters: Shariah principles require exclusion of certain business activities related to Financial Ratios based filters
  • Alcohol, Tobacco.
  • Companies involved in paying and receiving interest like Banking industry.
  • Gaming / Gambling / Casino / Games of Chance
  • Non-halal Food Products.
  • Entertainment and Leisure Related To Pornography or Adult Content.
  • Filtering out companies which have higher debt on their books
  • Avoids companies having higher income share of non Shariah compliant activities like interest income.
  • Cash, Receivables, investments and debtors to be within certain limits.

ABOUT TATA ETHICAL FUND

Tata Ethical Fund is a diversified equity fund that seeks to invest in stocks that follow Shariah principles of investments and has a track record of more than 25 years*. The Scheme follows stock picking approach to build a portfolio of companies that are in harmony with the principles of the Shariah on investments.

*Categorized as Ethical Fund since 2011

WHY TATA ETHICAL FUND?

Diversified Portfolio of Shariah Compliant Stocks

  • The fund will invest only in securities which are part of Shariah Complaint Universe.
  • The Investment Manager has appointed Shariah Advisor who shall provide the list of securities which are in compliance with Shariah principles.
  • The Fund does not follow any market cap bias.

Portfolio of fundamentally strong stocks with low leverage

  • Invests in Companies which have less than 25% of its total assets financed using interest bearing debt.
  • Such companies generally do not need large external debt to fund their growth – High internal cash generation capability.
  • Ability to grow is good irrespective of the external liquidity conditions as experienced in current markets.

Strict Adherence to Shariah Principles

  • Rigorous monitoring of portfolio by independent advisors to check adherence to Shariah principles
  • Any deviation is corrected within a specified time period
  • Purification process in place in case of prohibited income

SCHEME DETAILS

Investment Style An open ended equity scheme following Shariah principles
Investment Objective The investment objective of the Scheme is to provide medium to long- term capital gains by investing in Shariah compliant equity and equity related instruments of well-researched value and growth - oriented companies
Fund Manager Abhinav Sharma (Managing Since 06-Sep-21 and overall experience of 15 years)
Benchmark Nifty 500 Shariah TRI
Minimum Investment/ Multiples For New Investment ₹5,000/- and in multiples of ₹1/- thereafter.
Additional Investment/ Multiples For Existing Investors ₹1,000/- and in multiples of ₹1/- thereafter
Entry Load: Not Applicable
Exit Load: 1) Exit Load is Nil, if the withdrawal amount or switched out amount is not more than 12% of the original cost of investment on or before expiry of 365 days from the date of allotment.
2) Exit load is 1% of the applicable NAV if the withdrawal amount or switched out amount is more than 12% of the original cost of investment on or before expiry of 365 days from the date of allotment.
3) No Exit load will be charged for redemption or switch out after expiry of 365 days from the date of allotment.

RISKOMETER

Product Label Tata Ethical Fund Nifty 500 Shariah TRI

This product is suitable for investors who are seeking*:

  • Long Term Capital Appreciation.
  • Investment predominantly in equity & equity related instruments of shariah principles compliant companies and in other instruments allowed under shariah principles.
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

Investors understand that their principal will be at Very High Risk

Investors understand that their principal will be at Very High Risk

Corporate Office Address:

Tata Asset Management Private Limited, 19th floor, Parinee Crescenzo, ‘G’ Block, Bandra Kurla Complex, Opposite MCA Club, Bandra (E), Mumbai – 400051

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