Tata Ethical Fund

Updated: 23-10-2025 09:10:15 AM

Investment Objective

Tata Ethical Fund seeks to provide medium to long term capital appreciation by investing in equity and equity related securities of well-researched value and growth-oriented companies, which are compliant with the Shariah principles of investment.

Investment Strategy

• The fund invests in companies where less than 25% of their total assets are financed through interest-bearing debt. Such companies usually do not rely heavily on external debt to finance their growth, indicating strong internal cash generation capability. The growth potential of such companies is usually good irrespective of external liquidity conditions.
• The fund invests only in the securities of Shariah compliant companies.
• The fund does not have any market cap bias for stock selection.
• It follows a bottom-up approach to invest in companies, which are in alignment with the Shariah investment principles.
• The fund avoids investing in companies considered to be morally deficient, including those involved in tobacco, alcohol, gambling, lottery, banking and financial services, or other Shariah prohibited activities.

Who Should Invest

• Investors seeking to invest in Shariah compliant companies.
• Those looking for long term capital growth through equity exposure.
• Those who are aware of the risks associated with investing in equities.
• Those preferring to make investments adhering to ethical or faith-based guidelines, such as Shariah investment guidelines, which avoid sectors like tobacco, alcohol and gambling.