Tata AMC launches six new index funds: Tata Mutual Fund has released six index funds raising the total number of Tata Mutual Fund’s passive funds. The new fund offer (NFO) of these 6 funds will be open until April 22nd and a minimum investment of Rs 5,000 is required for the initial investment.
Of these six funds, three have been launched in the mutual fund business for the first time. Tata AMC has created benchmarks for the new funds in collaboration with Nifty indices. Nifty Indices is a wholly-owned subsidiary of NSE. The new funds include Tata Nifty Auto Index Fund, Tata Nifty Realty Index Fund, Tata Nifty Financial Services Index Fund, Tata Nifty Midsmall Healthcare Index Fund, and others.
The three new funds of Tata AMC, which have been launched for the first time in the market, are the Tata Midsmall Healthcare Index Fund, Tata Nifty500 Multicap India Manufacturing 50:30:20 Index Fund, and Tata Nifty500 Multicap Infrastructure 50:30:20 Index Fund. Anand Varadarajan, head of institutional clients at Tata Asset Management, said that these funds provide long-term possibilities.
Read More: 7th Pay Commission arrears: Big relief for these government employees; check update
He said that the healthcare index fund is based on small-cap and mid-cap companies. These segments offer a variety of opportunities, including hospitals, pharmaceuticals, and diagnostics.
Varadarajan said that in the infrastructure, we are witnessing rapid growth in railways, highway electrification, etc. As an investor, you need to see where the money is flowing now, he added.
Index fund to track selected stocks
Index funds track the performance of selected large-cap, mid-cap, and small-cap stocks. These stocks are part of the Nifty 500 index. The total weight for large-cap is fixed at 50 percent.
The weightage is fixed at 30 percent for the mid-cap segment and 20 percent for the small-cap segment. There were 75 stocks in this index at the end of March. These included 15 large-cap, 25 mid-cap and 35 small-cap stocks.
