NFO: Tata Asset Management launches alpha-based passive fund - Check subscription dates and other details

Risk-free return

The Index’s methodology measures excess return generated by the portfolio relative to its benchmark index Nifty200 after adjusting for risk and volatility. Based on the alpha factor, the fund identifies and includes stocks that generate returns above the broad market return and risk-free return, giving more importance to stocks which generate high excess returns per unit of risk. 

Index Methodology

The Nifty200 Alpha 30 Index methodology measures excess investment return relative to the Benchmark index Nifty200 using 1 year trailing price. Top 30 stocks with highest Jensen’s Alpha are chosen, allocating more weight to stocks which generate high Alpha per unit of risk, i.e., volatility. 

Stocks with minimum listing history of 1 year

Index is re-balanced on a quarterly basis using data ending last trading day of February, May, August, and November. The stocks should have a minimum listing history of 1 year as on the cut-off date and should be available for trading in derivative segment (F&O) as on the effective date.

Subscriptions Dates

The fund will re-open for subscriptions on or before September 11, 2024.

Minimum Application Amount

The minimum application amount during the NFO is ₹5,000, and there is no entry load.

Exit Load

However, an exit load of 0.25% applies if units are redeemed within 15 days of allotment.

Investment Objective

The investment objective of the scheme is to provide returns, before expenses, that commensurate with the performance of the Nifty200 Alpha 30 Index (TRI), subject to tracking error. There is no assurance or guarantee that the investment objective of the scheme will be achieved.   The scheme does not assure or guarantee any returns.

Type of Scheme

An open-ended scheme replicating/tracking Nifty200 Alpha 30 Index (TRI)

Fund Manager

The Fund Manager of the scheme is Kapil Menon