Tata Group Mutual Fund Schemes: 6 Index Funds Launched, Set To Close Soon; Details Inside

Tata Mutual Fund introduced a massive 6 new index funds via an NFO (New Fund Offer). Launched on April 8, the 6 thematic index funds will be focusing on financial services, automobile, healthcare, infrastructure, realty, and manufacturing. Out of these 6 funds, three are first in the industry namely Nifty 500 Multicap 50:30:20 Infrastructure Index Fund, Nifty 500 Multicap India Manufacturing 50:30:20 Index Fund, and Nifty MidSmall Healthcare Index Fund.

The remaining schemes are Nifty Financial Services Index Fund, Nifty Auto Index Fund, and Nifty Realty Index Fund. The selection of sectors as well as themes were entirely based on gripping consumer trends.

Anand Vardarajan, business head at Tata Asset Management said, "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, spurring manufacturing growth."

Tata Nifty Auto Index Fund: It is an open-ended index fund that seeks to match performance of the Nifty Auto Index (TRI). In this fund, minimum investment amount stand at Rs 5,000. The goal of the investment is to offer returns that match the index performance. The scheme began with a new fund offer (NFO) on April 8, 2024 and will close on April 22nd. There will be no entry load, but an exit load of 0.25% will apply in case you decide to redeem your investment within 15 days of allotment.

Tata Nifty Mid-Small Healthcare Index Fund: It was introduced by Tata Mutual Fund on April 8, 2024. The open-ended index fund also seeks to match Nifty Mid-Small Healthcare Index (TRI)'s performance. It implies the fund would invest in the same companies and seek to accomplish same returns as the index. However, there might be some deviation (tracking error). Under this fund, there will be no guarantee of returns on the investment. Investors will be eligible to enter the fund with minimum investment amount of Rs 5,000 while there will be no entry load. However, an exit load of 0.25% of the applicable NAV shall be charged in case investors redeem their units within 15 days from the allotment date.

Tata Nifty Financial Services Index Fund: It was introduced by Tata Mutual Fund on April 8. The open-ended index fund seeks to match performance of the Nifty Financial Services Index (TRI). It doesn't guarantee returns but strives to produce results similar to the index, with a minimal tracking error. There will be no entry load, however an exit load of 0.25% will be applicable if investors redeemed within 15 days of allotment. Minimum investment amount will be Rs 5,000.

Tata Nifty Realty Index Fund: The open-ended index fund seeks to match performance of the Nifty Realty TRI (Total Return Index). The scheme invests in firms that include the Nifty Realty Index, offering investors exposure to the Indian real estate sector.

Tata Nifty500 Multicap Infrastructure 50:30:20 Index Fund: It was launched by Tata Mutual Fund on April 8, 2024. It is an open-ended index fund that seeks to match performance of the Nifty500 Multicap Infrastructure 50:30:20 Index (TRI). It implies the fund invests in a basket of large, mid, and small-cap companies from the infrastructure sector, with weightage assigned as 50% in large cap, 30% in mid cap, and 20% in small cap segments.

Tata Nifty500 Multicap India Manufacturing 50:30:20 Index Fund: It was introduced by Tata Mutual Fund on April 8, 2024. The open-ended index fund seeks to mirror performance of the Nifty500 Multicap India Manufacturing 50:30:20 Index (TRI), investing in large, mid, and small-cap stocks from the Nifty 500 that focus on the manufacturing sector.