Tata Mutual Fund has launched six new index funds, including three industry-first offerings. This move aims to expand Tata MF’s passive fund range significantly. This initiative seeks to offer investors opportunities within key sectors such as healthcare, manufacturing, and infrastructure. The launch of new index funds signifies Tata’s commitment to aligning with emerging market trends.
Now, which are these new index funds in Tata MF?
Let us take a look!
New Fund Offers| Key Highlights
- Tata Mutual Fund launches six new index funds, including three industry-first offerings like the Tata Nifty MidSmall Healthcare Index Fund.
- New funds like Tata Nifty Auto Index Fund and Tata Nifty Realty Index Fund aim to capture emerging trends in real estate and automotive.
- Tata MF’s NFO for these index funds is open from April 8 to April 22, with a minimum investment of Rs 5,000 during this period.
- The fund house collaborated with Nifty Indices to co-create unique benchmarks for three of the new funds.
- The three industry firsts focus on healthcare, manufacturing, and infrastructure themes.
New Funds Launched by Tata Mutual Fund
- Tata Nifty Auto Index Fund
- Tata Nifty Realty Index Fund
- Tata Nifty Financial Services Index Fund
- Tata Nifty MidSmall Healthcare Index Fund
- Tata Nifty500 Multicap India Manufacturing 50:30:20 Index Fund
- Tata Nifty500 Multicap Infrastructure 50:30:20 Index Fund
Thematic index funds, such as those recently launched by Tata Mutual Fund, provide investors with targeted exposure. This is for specific sectors or themes within the market.
These new funds by Tata MF aim to replicate the performance of custom-designed indices. The key focus is on the industries like healthcare, manufacturing, and infrastructure.
Now, which are the Industry Firsts introduced by Tata Mutual Fund?
Among these, three funds are industry firsts:
- Tata Nifty MidSmall Healthcare Index Fund,
- Tata Nifty500 Multicap India Manufacturing 50:30:20 Index Fund,
- Tata Nifty500 Multicap Infrastructure 50:30:20 Index Fund.
The new fund offers (NFO) for these schemes will be open from April 8 to April 22, with a minimum investment of Rs 5,000 during the NFO period.
Co-Created Benchmarks
Tata Mutual Fund collaborated with Nifty Indices, a subsidiary of the National Stock Exchange of India, to develop these benchmarks.
Unique Opportunities
Anand Varadarajan, from Tata Asset Management, highlighted the long-term potential of these funds.
He emphasised the revival of real estate due to strong demand and technological advancements in the auto sector. Additionally, he mentioned promising growth prospects in healthcare, infrastructure, and manufacturing.
Let us look at the details of the three industry first additions to the Tata Mutual Fund!
Tata Nifty MidSmall Healthcare Index Fund
This fund monitors the performance of mid-cap and small-cap stocks in the healthcare sector. It includes up to 30 stocks selected from the parent Nifty MidSmallcap 400 index.
The top constituents by weightage in the Tata Nifty MidSmall Healthcare Index Fund are:
- Max Healthcare Institute: 14.26 percent
- Lupin: 9.19 percent
- Aurobindo Pharma: 7.21 percent
- Alkem Laboratories: 5.84 percent
- Fortis Healthcare: 5.15 percent
The Nifty MidSmall Healthcare Total Return Index (TRI) increased by 66.63 percent over the past year in terms of performance.
Tata Nifty500 Multicap India Manufacturing 50:30:20 Index Fund
This Tata MF aims to mirror the performance of specific large-cap, mid-cap, and small-cap stocks from the Nifty 500 index that focus on manufacturing.
The fund allocates 50 percent of its weight to large-cap stocks, 30 percent to mid-cap stocks, and 20 percent to small-cap stocks.
As of the end of March, the index comprises 75 stocks: 15 large-cap, 25 mid-cap, and 35 small-cap stocks.
Top Five Companies by Weightage in the Tata Nifty500 Multicap India Manufacturing 50:30:20 Index Fund
- Reliance Industries: 9.96 percent
- Sun Pharmaceutical Industries: 4.88 percent
- Tata Motors: 4.88 percent
- Mahindra & Mahindra: 4.80 percent
- Maruti Suzuki India: 4.64 percen
In terms of sector representation, automobile and auto components have the highest weightage at 27.55 percent, followed by healthcare at 21.80 percent, and capital goods at 13.11 percent.
The Nifty500 Multicap India Manufacturing 50:30:20 Total Return Index (TRI) has increased in performance by 53.78 percent over the past year.
Tata Nifty500 Multicap Infrastructure 50:30:20 Index Fund
This fund will follow specific large-cap, mid-cap, and small-cap stocks from the Nifty 500 that focus on infrastructure.
The fund has a fixed weight for each market capitalisation, and it includes a total of 75 stocks in the index.
Top Five Stocks in the Tata Nifty500 Multicap Infrastructure 50:30:20 Index Fund:
- Larsen & Toubro: 10.35 percent
- Reliance Industries: 10.07 percent
- Bharti Airtel: 7.27 percent
- NTPC: 3.71 percent
- Max Healthcare Institute: 2.97 percent
Top Three Sectors:
- Oil, gas & consumable fuels: 21.26 percent
- Construction: 12.84 percent
- Telecommunication: 11.08 percent
The Nifty500 Multicap Infrastructure 50:30:20 Total Return Index (TRI) has increased by 61.62 percent over the past year.
Manufacturing, infrastructure, and realty, with attractive valuations in banking and financial services, are key to note!
Conclusion
Tata Mutual Fund’s introduction of six new index funds, especially the unique sector-focused offerings, is a noteworthy advancement for the Indian stock market. It presents investors with opportunities to participate in key sectors like healthcare, manufacturing, and infrastructure.
Source- moneycontrol.com
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