According to Tata AMC, these index funds are made to expose investors to important industries with room to expand in the current economic environment.
Six index funds were introduced on Monday, April 8, according to a statement from Tata Asset Management Company (AMC). According to Tata AMC, these index funds are made to give investors exposure to important industries with room to expand in the current economic environment.
Three of these — Nifty 500 Multicap India Manufacturing 50:30:20 Index Fund, Nifty 500 Multicap 50:30:20 Infrastructure Index Fund, and Nifty MidSmall Healthcare Index Fund — are a first in the industry.
The other schemes are the Nifty Realty Index Fund, Nifty Financial Services Index Fund, and Nifty Auto Index Fund.
During the NFO period, a minimum investment of ₹5,000 is required.
Three of the six plans—the Tata Nifty MidSmall Healthcare Index Fund, the Tata Nifty500 Multicap India Manufacturing 50:30:20 Index Fund, and the Tata Nifty500 Multicap Infrastructure 50:30:20 Index Fund—are firsts for the industry.
Let's look at all 6 funds:
Tata Nifty MidSmall Healthcare Index Fund:
This fund mirrors the Nifty MidSmall Healthcare Index, capitalising on the favorable factors driving the healthcare industry, including robust margins, stable pricing pressures in international markets, and increasing health consciousness among consumers.
Tata Nifty 500 Multicap 50:30:20 Infrastructure Index Fund:
This scheme aims to replicate the performance of the Nifty 500 Multicap Infrastructure Index with an allocation ratio of 50:30:20 across large-cap, mid-cap, and small-cap companies.
According to the fund house, this fund offers an investment option for those looking to gain exposure to India's infrastructure industry since public capital expenditure in infrastructure is seeing a notable upswing and factories are running at maximum efficiency.
Tata Nifty Financial Services Index Fund:
This fund aims to replicate the NIFTY Financial Services Index (TRI), offering exposure to a diverse range of financial services companies poised for potential growth.
Due to its low Gross Non-Performing Assets (GNPAs) and low default rate of 2.9%, the industry has strong asset quality. Notably, the sector has seen a 21% increase in credit and a 14% increase in deposits, indicating a robust financial ecosystem.
Furthermore, the increasing adoption of digital banking services is evident, with a notable 57% year-on-year growth in Unified Payments Interface (UPI) volume. ( Source: BCG Banking Sector Roundup 9MFY24)
Tata Nifty Realty Index Fund:
The index fund is positioned to tap into the real estate sector.
Tata AMC said that This fund tracks the Nifty Realty Index, potentially benefiting from factors such as soaring residential demand, rapid sales velocity, and a resilient balance sheet post-RERA implementation.
Tata Nifty 500 Multicap India Manufacturing 50:30:20 Index Fund:
The manufacturing landscape in India offers investors compelling opportunities given its significant advancements, which include an improved ranking in the World Bank's Ease of Doing Business. These advancements are primarily the result of initiatives like the implementation of the GST, the RERA policy, the performance-linked investment scheme, and digitalization.
Tata Nifty Auto Index Fund:
The fund seeks to replicate the Nifty Auto Index and is designed to reflect the behavior and performance of the automobiles sector which includes manufacturers of cars, motorcycles, heavy vehicles, and auto ancillaries.
About Tata Mutual Fund (Tata Asset Management Private Limited):
Chairman– Rajiv Sabharwal
Headquarters– Mumbai, Maharashtra
Established in -1994
First Published: Apr 9, 2024, 11.23 AM IST
