Tata AMC - NETF

About TATA Nifty 50 ETF

• The TATA Nifty 50 ETF is an open-ended mutual fund offered by Tata Mutual Fund House.
• The ETF invests in top companies listed on the National Stock Exchange (NSE).
• TATA Nifty 50 ETF was launched on January 1, 2019.
• The ETF has assets under management (AUM) at ₹704.09 crore as of July 31, 2024.
• Sailesh Jain and Kapil Menon are the fund managers.
• The ETF units are listed on both NSE and BSE. Retail investors can purchase units through a broker or directly from their demat account.

Investment Objective & Benchmark

• The fund's performance is benchmarked to the Nifty 50 Index Index, which is a well-diversified 50-stock index that represents important sectors of the economy.

• This fund's objective is to generate returns by investing in the same stocks as the Nifty 50 Index, closely matching its performance, though some differences may occur.

• The fund has a diversified portfolio across key sectors, including financial services, IT, energy and consumer goods mirroring the Nifty 50 Index.

• Companies are selected based on their market-cap ratings, focusing on those with the highest rankings in their sectors. The portfolio includes a mix of large-cap and mid-cap companies that are leaders in their industries and are expected to benefit from India's growth.

• The ETF invests in stocks from different sectors, limiting investors’ exposure to sectoral risks.

• The risk profile level of Tata Nifty 50 ETF is very high, making it suitable for those looking at a long term goal of wealth creation.

Asset Allocation & Portfolio Composition

• The ETF holds 99.76% of its fund in equity and 0.24% in cash.

• The fund allocation in this ETF, based on market capitalisation, is 79.37% in giant-cap stocks, 10.30% in large-cap stocks and 10.33% in mid-cap stocks.

Sector-wise fund allocation:

• Financial Services: 34.41%
• Oil, Gas, and Consumable Fuels: 12.56%
• Information Technology: 12.44%
• Automobile and Auto Components: 8.01%
• Fast-Moving Consumer Goods (FMCG): 7.73%

Top 10 company holdings make up 68.24% of the ETF’s asset allocation.

Here’s a list of the top 10 holdings in this ETF:

• HDFC Bank Ltd: 11.96%
• Reliance Industries Ltd: 10.00%
• ICICI Bank Ltd: 7.95%
• Infosys Ltd: 5.26%
• Larsen & Toubro Ltd: 3.95%
• Tata Consultancy Services Ltd: 3.72%
• ITC Ltd: 3.54%
• Bharti Airtel Ltd: 3.53%
• Axis Bank Ltd: 3.38%
• State Bank of India: 3.07%

In the last year the ETF has given a return of 26.58% compared to its benchmarked index which has given a return of 26.74% as of July 31, 2024.

Since its Inception, the ETF has given an annualised return of 16.75% to its investors.