Tata MF becomes first fund to launch derivatives fund
Mumbai: Tata group company, Tata Mutual Fund, became the first fund in the country to launch a fund for investments in the equity derivatives market. The proposed "Index-Based Derivatives Fund" is seeking to make investments in both the derivatives segment and also in the BSE sensex stocks in general.

The fund intends to invest 10-30 per cent of its total portfolio in index futures in the derivatives market and the rest of the portfolio comprising stocks in the 30-share BSE Sensex and money market instruments. It has also made it very clear that the investment in the sensex stocks will not be in the same proportion as the constitution of the index.

The fund's plan is line with the recommendations of the derivatives committee which had suggested that mutual funds should be active users of this instrument.
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