Tata Mutual Fund Submits Proposal for Nifty Capital Markets Index Fund
Tata Mutual Fund filed a prospectus with SEBI to launch an open-ended scheme called the Tata Nifty Capital Markets Index Fund, which seeks to replicate or track the TRI of the Nifty Capital Markets Index.
The basic objective of the plan is to provide returns comparable to that of the Nifty Capital Markets Index (TRI), net of expenses, with an intention to track as closely as possible. This would be an investment option for those seeking capital gains over the longer term through investing in equity and equity-related securities in the Nifty Capital Markets Index.
It will be benchmarked against Nifty Capital Markets Index (TRI) and its assets would invest fully in those securities which are comprised of the index. 0-5% may also be put towards investments in debt or money market instruments, besides units in mutual funds.
The new fund would offer regular and direct plans with growth and IDCW options. Investors redeeming within 15 days from allotment shall face an exit load of 0.25% of the applicable NAV. The minimum investment requirement has been set at Rs 5,000, with Re 1 increments allowed thereafter. Investors switching “all units” out of any existing Tata Mutual Fund scheme are not required to meet the minimum investment requirement.
Minimum purchase amount is Rs 1,000, and the redemption amount is at Rs 500 or 50 units, whichever is lower.
Place in riskometer: the fund falls under the “very high” risk category; it would suit investors comfortable with elevated risk exposure for potential long-term capital growth.
As of September 9, 2024, Nifty Capital Markets Total Returns Index is un-exposed to debt market and is launched with the aim of replicating, insofar as possible, the performance of the stocks of Nifty 500 Index that are part of the capital markets theme. In terms of weightage, the largest constituent of the index is HDFC Asset Management Company, with a weightage of 17.47%.
