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Tata Asset Management has launched its first index fund, the Tata BSE Select Business Group Index Fund, aimed at providing investors exposure to India's leading conglomerates. The new fund offer (NFO) opened for subscription on November 25, 2024, and will close on December 9, 2024.
The Tata BSE Select Business Group Index Fund tracks the BSE Select Business Groups Index, which includes 30 companies from seven of India’s largest business groups.
These groups span 19 industries, excluding the financial services sector, to focus on other key areas of India's economic growth. The business groups featured in the fund are Tata Group, Reliance Industries, Adani Group, Aditya Birla Group, L&T, Jindal Group, and Mahindra Group.
The weightage of each group is capped at 23% based on their free-float market capitalisation.
Anand Vardarajan, Chief Business Officer at Tata Asset Management, said, “This fund offers investors a unique opportunity to participate in the growth of India’s leading conglomerates. These companies have demonstrated their ability to thrive in a dynamic market environment, making them attractive for long-term investors.”
The fund gives investors exposure to emerging, growth-oriented sectors like electric vehicles, green energy, AI, quantum computing, and defense, all of which are expected to drive India’s future growth.
Vardarajan added, “These business groups are integral to India’s ambition to become the third-largest economy by 2028.”
The Tata BSE Select Business Group Index Fund is open-ended, offering both subscription and redemption options.
The fund’s composition is based on the free-float market capitalisation of the companies, with the Tata Group holding the largest weightage at 22.7%.
The Tata BSE Select Business Group Index Fund tracks the BSE Select Business Groups Index, which includes 30 companies from seven of India’s largest business groups.
These groups span 19 industries, excluding the financial services sector, to focus on other key areas of India's economic growth. The business groups featured in the fund are Tata Group, Reliance Industries, Adani Group, Aditya Birla Group, L&T, Jindal Group, and Mahindra Group.
The weightage of each group is capped at 23% based on their free-float market capitalisation.
Anand Vardarajan, Chief Business Officer at Tata Asset Management, said, “This fund offers investors a unique opportunity to participate in the growth of India’s leading conglomerates. These companies have demonstrated their ability to thrive in a dynamic market environment, making them attractive for long-term investors.”
The fund gives investors exposure to emerging, growth-oriented sectors like electric vehicles, green energy, AI, quantum computing, and defense, all of which are expected to drive India’s future growth.
Vardarajan added, “These business groups are integral to India’s ambition to become the third-largest economy by 2028.”
The Tata BSE Select Business Group Index Fund is open-ended, offering both subscription and redemption options.
The fund’s composition is based on the free-float market capitalisation of the companies, with the Tata Group holding the largest weightage at 22.7%.
First Published: Nov 25, 2024 1:34 PM IST
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