Tata Asset Management launches 6 index funds: Tata Asset Management Company has announced the launch of six index funds that are aimed at providing investors with exposure to key sectors having growth potential in the current economic landscape. The six newly-launched index funds are Tata Nifty 500 Multicap 50:30:20 Infrastructure Index Fund, Tata Nifty MidSmall Healthcare Index Fund, Tata Nifty Realty Index Fund, Tata Nifty Financial Services Index Fund, Tata Nifty Auto Index Fund and Tata Nifty 500 Multicap India Manufacturing 50:30:20 Index Fund.

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Tata Asset Management index funds: NFO opening date, closing date, minimum invesment

The new fund offers (NFOs) for these six schemes will open on April 8, and the NFO will  close on April 22, 2024. 

The minimum investment amount has been fixed at Rs 5,000.

Tata Asset Management index funds: Details

Tata Nifty 500 Multicap 50:30:20 Infrastructure Index Fund
The Tata Nifty 500 Multicap 50:30:20 Infrastructure Index Fund aims to replicate the performance of the Nifty 500 Multicap Infrastructure Index by allocating 50:30:20 across large-cap, mid-cap, and small-cap companies. With public capital expenditure in infrastructure increasing significantly and factories operating at peak levels, this fund presents an attractive investment opportunity for those seeking exposure to India's burgeoning infrastructure sector.

Tata Nifty MidSmall Healthcare Index Fund
The Tata Nifty MidSmall Healthcare Index Fund mirrors the Nifty MidSmall Healthcare Index, capitalising on the healthcare industry's favourable factors, such as strong margins, stable pricing pressures in international markets, and rising consumer health consciousness.

Tata Nifty Realty Index Fund
The Tata Nifty Realty Index Fund targets the thriving real estate sector. This fund tracks the Nifty Realty Index and could benefit from factors such as rising residential demand, rapid sales velocity, and a strong balance sheet following RERA implementation.

Tata Nifty Financial Services Index Fund
The Tata Nifty Financial Services Index Fund seeks to replicate the NIFTY Financial Services Index (TRI) by providing exposure to a diverse range of financial services companies poised for growth. The Indian banking industry is currently experiencing remarkable growth, as evidenced by its high asset quality and robust performance metrics. With a low default rate of 2.9 per cent due to low Gross Non-Performing Assets (GNPAs), the sector demonstrates strong asset quality.

Tata Nifty Auto Index Fund
The Tata Nifty Auto Index Fund aims to replicate the Nifty Auto Index by tracking the performance of automobile manufacturers, including cars, motorcycles, heavy vehicles, and auto ancillaries. The Indian automotive industry is poised for potential growth in the coming decade, driven by favourable demographics, rising disposable incomes, rapid urbanisation, and accessible credit.

Tata Nifty 500 Multicap India Manufacturing 50:30:20 Index Fund
With India's significant progress, including an improved ranking in the World Bank's Ease of Doing Business index, thanks to initiatives such as GST implementation, performance-linked investment schemes, RERA policy, and digitalization, the manufacturing landscape offers compelling opportunities for investors. Furthermore, the fund's focus on top-performing stocks from various sectors within the manufacturing theme is consistent with India's path to becoming a manufacturing powerhouse.

Anand Vardarajan, Business Head at Tata Asset Management, commeneted at the launch of these funds, and said: “There is a saying ‘skate to where the puck is going, not where it has been’. It is instructive for an investor to then see where money is being spent today. More often than not, where the rich spend today, the middle class may spend tomorrow. In that context we have come up with 6 index funds which could participate in the overall India growth story.”

“The decision to introduce these index funds is backed by rising income levels and compelling consumer trends. 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 healthcare industry presents potential opportunities driven by strong margins, stabilized pricing pressures in international markets, and increasing health awareness,” he added.