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Tata MF to come out with the Contra Fund
Kolkata: The Tata Mutual Fund proposes to launch the Contra Fund, an equity scheme that will follow a contrarian investing strategy.

The proposed Contra Fund, will invest in stocks of companies irrespective of market capitalisation. The offer document filed with SEBI says that the idea is to de-emphasise the relative importance of economic cycles and instead focus on individual stocks.

Contrarian investing, states the offer document, refers to buying into "fundamentally sound scrips that have been overlooked by the market (for reasons of short-term trends)". The Contra fund will examine fundamentally sound companies with long-term growth potential, those that have attractive valuations.

A company's intrinsic value will be ascertained on the basis of factors such as growth potential, product range, competitive position and management strengths.

"Attractive valuation could be a result of an early identification of positive fundamental changes in the underlying company, such as significant cost-cutting, launch of new products, expanding distribution network, consolidation in the industry etc.," the offer document said.

According to the document under normal circumstances, a minimum 70 per cent of the scheme's assets will be invested in equities. The fund may invest in derivative instruments for hedging and portfolio balancing as well.

Venugopal M. has been named as the fund manager.
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Ind Swift GDR issue raises US$10.62mn
New Delhi: Ind Swift Laboratories Ltd on Tuesday said that it has raised US$10.62mn through the issue of 2.50 million Global Depository Receipts (GDRs). The issue will be listed on the Luxembourg Stock Exchange.

Each GDR representing one underlying equity share of Rs10 each was priced at US$4.25 per GDR, the company informed the Bombay Stock Exchange.

Elara Capital Advisors Ltd of London acted as lead manager to the issue.

The board meeting was held on August 12, to issue 25 lakh underlying equity shares of Rs10 each, the company said.
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Franklin Templeton launches 60 month-Fixed Tenure Fund- Series II
Mumbai: Franklin Templeton Investments (India) Ltd has launched a 60-month Fixed Tenure Fund-Series II plan, which would provide investors steady returns along with capital appreciation through equity exposure.

The new fund offer period is open till August 31 with an allotment date of September 9. The units would be available at Rs10 per unit for cash at par, it said in a release.

The Chief Investment Officer (Equity), Sukumar Rajah, said: "The fund would invest at least 70 per cent in debt instruments that are maturing in line with the duration of the fund. The balance 30 per cent will be invested in equities."
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