NFO Watch: Tata Nifty India Tourism Index Fund is open for subscription. Key things to know

Tata Mutual Fund has launched Tata Nifty India Tourism Index Fund, the nation's first tourism index fund comprising a collection of companies forming part of Nifty500.

The new fund offer or NFO of the scheme is open for subscription and will close on July 19. The scheme will reopen for continuous sale and repurchase on or before July 29.

The investment objective of the scheme is to provide returns, before expenses, that commensurate with the performance of Nifty India Tourism Index (TRI), subject to tracking error.

The scheme will be benchmarked against TRI. The scheme will be managed by Kapil Menon.

The minimum application amount is Rs 5,000 and in multiples of Re 1 thereafter. There is no minimum amount requirement, in case of investors opting to switch “all units” from any existing schemes of Tata Mutual Fund to this scheme.

The fund will allocate 95-100% in securities covered by Nifty India Tourism Index and 0-5% in debt/money market instruments including units of mutual funds.

The fund is an open-ended index fund that has been meticulously designed to provide investors with exposure to India’s fastest growing companies from travel, tourism and hospitality businesses. The companies forming the index are leaders in their respective segments and have benefitted from the rising disposable income levels, evolving tastes of the Indian consumer and sustained higher discretionary spends, according to the fund house.