Tata BSE Select Business Groups Index Fund: NFO Filing with SEBI

Tata BSE Select Business Groups Index Fund Overview

Tata Mutual Fund has filed the Tata BSE Select Business Groups Index Fund with SEBI, an open-ended index fund replicating or tracking the BSE Select Business Groups Index (TRI). The fund’s objective is to provide long-term capital appreciation by investing in a portfolio of companies that form part of the BSE Select Business Groups Index.

Fund Details

• Fund Name: Tata BSE Select Business Groups Index Fund
• Category: Index Fund
• Type: Open-ended scheme
• Objective: To provide returns that closely correspond to the performance of the BSE Select Business Groups Index (TRI), subject to tracking error.
• Fund Manager: Kapil Menon
• Benchmark Index: BSE Select Business Groups Index (TRI)
• New Fund Offer (NFO) Price: Units are offered at Rs. 10 during the NFO period.

Investment Objective

The fund aims to replicate the performance of the BSE Select Business Groups Index (TRI) as closely as possible by investing in the securities of the companies that constitute the index in the same proportions. However, no assurance is provided on guaranteed returns.

Asset Allocation

The fund’s portfolio will consist predominantly of:

• 95-100% in securities covered by the BSE Select Business Groups Index.
• 0-5% in debt and money market instruments to manage liquidity requirements.

Fund Manager and Investment Strategy

Kapil Menon, the fund manager, will oversee the investments of the scheme. The strategy involves passive management, meaning the portfolio will mirror the underlying index with minimal deviation. The aim is to minimize tracking error through careful portfolio management and periodic rebalancing.

Key Features

• Liquidity: The fund will remain open for sale and repurchase of units at NAV-based prices after the NFO.
• Minimum Subscription Amount: Rs 5,000 and multiples of Rs. 1 thereafter.
• Exit Load: 0.25% if redeemed within 15 days.

Investment Suitability

This fund is ideal for investors seeking long-term capital growth through passive exposure to leading business groups in India. It is suitable for investors looking to invest in a fund that tracks a well-diversified index with prominent companies.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.