New Fund Offer: Tata AMC launches India's 1st first tourism index mutual fund; know who should invest in it

New Mutual Fund Offer: Tata Asset Management Company has launched nation’s first tourism index fund- Tata Nifty India Tourism Index Fund. The new fund from Tata AMC will track the Nifty India Tourism Index (TRI, i.e., total returns index). 

The open ended NFO is open from July 8 to July 29. The minimum application amount during NFO for the fund is Rs 5,000 and in multiple of Rs 1 thereafter. 

The very high risk fund has Kapil Menon as the fund manager.

There is no entry load in the fund, while a 0.25 per cent exit load of the NAV is applicable if redeemed on or before 15 days from the date of allotment.

Who should invest in the fund?

Tata AMC says that investment in the fund is suitable for investors who are seeking long-term capital appreciation. 

"This open-ended index fund has been meticulously designed to provide investors with exposure to India’s fastest growing companies from travel, tourism and hospitality businesses. The companies forming the index are leaders in their respective segments and have benefitted from the rising disposable income levels, evolving tastes of the Indian consumer and sustained higher discretionary spends," said Tata AMC in a statement.  
 

Index methodology

The index methodology for the Tata Nifty India Tourism Index Fund adheres to stringent criteria to ensure optimal representation of all Tourism related segments, with a maximum stock level capping limit of 20% in the index, says the company.