Tata Mutual Fund has introduced six new funds together. This adds more passive funds to Tata Mutual Fund.
You can invest in these new funds with a minimum investment of Rs 5,000.
Among these six funds, three are being introduced for the first time in the mutual fund industry.
Tata AMC has set benchmarks for these new funds in partnership with Nifty indices, which is part of NSE and provides indexes.
The new funds are Tata Nifty Auto Index Fund, Tata Nifty Realty Index Fund, Tata Nifty Financial Services Index Fund, Tata Nifty Midsmall Healthcare Index Fund, and others.
Among these, three funds are being introduced for the first time in the industry.
These are 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, who leads institutional clients at Tata Asset Management, says, “These funds provide long-term opportunities.
For instance, real estate is making a comeback after a decade. Similarly, there have been significant technological advancements in the auto sector.”
He mentions that the healthcare index fund focuses on small and mid-sized companies, which offer various opportunities such as hospitals, pharmaceuticals, and diagnostics.
In infrastructure, there’s fast growth in railways, highways, and electrification.
In manufacturing, activities are increasing due to initiatives like China Plus One and PLI. As an investor, it’s crucial to see where the money is flowing currently.
Index funds track the performance of selected large, mid, and small-sized stocks, which are part of the Nifty 500 index.
Large caps hold a 50% weightage, mid caps hold 30%, and small caps hold 20%. As of March, there were 75 stocks in this index, including 15 large caps, 25 mid caps, and 35 small caps.
