Tata Mutual Fund launches 6 index funds focusing on key sectors; check list
Upstox
2 min read • Updated: April 9, 2024, 11:45 AM
Summary
The sectors and themes of the index funds were chosen based on compelling consumer trends, said Anand Vardarajan, Business Head at Tata Asset Management. These funds focus on key sectors like health care, infrastructure, realty, automobile, manufacturing and financial services.
Tata Mutual Fund has come up with six index funds focusing on different sectors such as infrastructure, realty, healthcare, automobile, financial services and manufacturing. The new fund offers (NFOs) for these schemes are open from April 8 to April 22, 2024.
Tata Mutual Fund launches six index funds; check list
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Tata Nifty 500 Multicap 50:30:20 Infrastructure Index Fund: This fund will replicate the performance of the Nifty500 Multicap Infrastructure Index, which contains 75 infrastructure stocks from NIFTY 500, with a maximum cap limit of 50%, 30% and 20% for largecap, midcap and smallcap companies respectively.
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Tata Nifty MidSmall Healthcare Index Fund: This scheme, which will include 30 stocks from the NIFTY MidSmallCap 400 index, tracks the performance of healthcare midcap and smallcap stocks.
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Tata Nifty Realty Index Fund: It will track the NIFTY Realty index and will benefit from factors like increasing residential demand and rapid sales.
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Tata Nifty Financial Services Index Fund: This scheme will mirror the NIFTY Financial Services Index.
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Tata Nifty Auto Index Fund: This fund seeks to replicate the performance of the NIFTY Auto index.
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Tata Nifty 500 Multicap India Manufacturing 50:30:20 Index Fund: It will track the performance of select manufacturing largecap, midcap, and smallcap stocks from the NIFTY50 index, in the ratio of 50%, 30% and 20%, respectively.
Anand Vardarajan, Business Head at Tata Asset Management, said, "We have come up with six index funds which could participate in the overall India growth story...Rising auto demand with sustainability and green energy are powering the growth of this sector. Factories are operating at near-maximum capacity, indicating near peak production capacity spurring manufacturing growth. The real estate sector is buoyed by robust residential demand, rapid sales velocity, and a resilient balance sheet post-RERA implementation. Infrastructure connectivity increases ease of travel and presents a good long-term potential for growth".
He added that the sectors and themes were chosen based on compelling consumer trends.