NFO Alert: Tata Mutual Fund launches Tata BSE Select Business Groups Index Fund

Tata Mutual Fund has launched Tata BSE Business Group Index Fund, An open-ended scheme replicating / tracking BSE Select Business Groups Index (TRI).

The new fund offer or NFO of the scheme is open for subscription and will close on December 9. The scheme will re-open for continuous sale and repurchase on December 18.

The fund is a new investment opportunity designed to provide investors with exposure to India's leading conglomerates. The Tata BSE Select Business Group Index Fund tracks the BSE Select Business Groups index, comprising companies from seven of India’s largest business groups.


These conglomerates span 19 diverse industries, reflecting central themes of India’s economic growth. The fund will include 30 companies from key sectors driving India's future growth, with the financial services sector excluded to focus on other industries, according to a release by the fund house.

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The seven business groups included in the fund are Tata Group, Reliance Industries, Adani Group, Aditya Birla Group, L&T, Jindal Group, and Mahindra Group. The weightage for each group is capped at 23% based on their free-float market capitalization, said the release.

"We are excited to launch the Tata BSE Select Business Group Index Fund, which provides investors with a unique opportunity to participate in the growth story of India's leading conglomerates. These businesses have demonstrated their ability to adapt and thrive in a dynamic market environment, making them one of the attractive investments for long-term investors," said Anand Vardarajan, Chief Business Officer at Tata Asset Management.

He added that " investors could benefit from the power 7 were in the top conglomerates which power the growth story will be a part of the index and one could benefit from a portfolio which is very diversified across sectors while still being with the top 7 business groups."

“The business groups’ diversified operations, technological advancements, and strong market presence position them as key contributors to the nation's economic aspirations. By investing in this fund, investors can gain exposure to these dynamic companies and participate in India's economic success,” added Vardarajan.

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The Tata BSE Select Business Group Index Fund is open-ended and available for both subscription and redemption. The weightage for each group is capped at 23% based on their free-float market capitalization. Currently, the Tata Group has a weightage of 22.7%, Reliance Industries at 22.3%, and L&T Group at 15%.

An exit load of 0.25% of the applicable NAV will be there, if redeemed on or before 15 days from the date of allotment. The minimum investment amount is Rs 5,000 and in multiple of Re 1 thereafter.

The scheme will be benchmarked against BSE Select Business Groups Index (TRI). and will be managed by Kapil Menon.

The scheme is suitable for investors who are seeking long-term capital appreciation and want investment in equity and equity related instruments comprised in the BSE Select Business Groups Index.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)