14th August 2008

Tata mutual fund has filed offer document with Securities and Exchange Board of India (SEBI) to launch Tata Fixed Investment Plan - 4. It is a close-ended debt fund. The face value of the new issue will be Rs 10 per unit.

Tata Fixed Investment Plan – 4 will be launched under two plans with different maturities: Scheme A to D. Scheme A and B, will be having maturity ranging between 13 months to 19 months and Scheme C and D with maturity ranging between 36 months to 43 months.

The investment objective of the schemes is to generate income and / or capital appreciation by investing in wide range of debt and money market instruments.

Each scheme has three plans retail investment plan, high investment plan and super high institutional plan. Investors may get benefit of growth option and dividend option. The dividend option offers dividend payout or dividend re-investment facility.

The minimum application amount under retail investment plan is Rs 10,000 and in multiples of Re 1 thereafter. The minimum application amount under high investment plan is Rs. 25,00,000 and in multiples of Re 1 thereafter. The minimum application amount under super high institutional plan is Rs 1 crore and in multiples of Rs. 1 thereafter.

All the schemes i.e. A to D, may take investment exposure up to 100% in debt and money market instruments and securitised debt. The scheme may invest up to a maximum of 50% of the scheme's net assets in domestic securitised debt. No investments would be made in foreign securitised debt. The scheme net assets will have a maximum derivative net position of 50% of the net assets of the scheme. Investment in derivative instruments may be done for hedging and portfolio balancing.

As the Tata Fixed Investment Plan – 4 is a close-ended debt fund, it will not apply for entry load.

Under all the schemes A to D, there will be an exit load of 2% for investments redemption before maturity. There will not be any exit load for switch out of investment on maturity.

Benchmark Index for the scheme is mentioned as CRISIL Shot Term Bond Fund Index. Mr. Raju Sharma will manage the scheme.