CALCULATE YOUR SIP RETURNS

NFO alert: Tata Mutual Fund launches Tata Nifty Financial Services Index Fund; details inside!

18 September 20246 mins read by Angel One
In the following article we shed light on the NFO's objectives, fund allocation, fund managers, and peer performance.
NFO alert: Tata Mutual Fund launches Tata Nifty Financial Services Index Fund; details inside!
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

Tata Nifty Financial Services Index Fund, launched by Tata Mutual Fund, is an open-ended index fund that aims to mirror the performance of the Nifty Financial Services Index (TRI). The scheme doesn’t guarantee returns but seeks to deliver results similar to the index, with a minimal tracking error. There is no entry load, but an exit load of 0.25% applies if redeemed within 15 days of allotment. The minimum investment amount is Rs 5,000. The new fund offering is open for subscription from April 8th, 2024, to April 22nd, 2024.

Investment Objective

The investment objective of the Tata Nifty Financial Services Index Fund is to provide returns, before expenses, that commensurate with the performance of Nifty Financial Services Index (TRI), subject to tracking error. There is no assurance or guarantee that the investment objective of the scheme will be achieved. The scheme does not assure or guarantee any returns.

This NFO of Tata Nifty Financial Services Index Fund is suitable for investors who are seeking long-term capital appreciation and Investment in equity and equity-related instruments comprised in the Nifty Financial Services Index. Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Risk-o-meter: 

Funds Allocation

Investments Indicative Allocation Risk Profile
Securities covered by Nifty Financial Services

Index

Minimum 95% – Maximum 100% Very high
Debt & Money Market Instruments including units of Mutual Funds Minimum 0% – Maximum 5% Low

Benchmark

The performance of the Tata Nifty Financial Services Index Fund is benchmarked against the NIFTY Financial Services Index (TRI).

Fund Managers

Kapil Menon, a 41-year-old B. Com graduate, boasts an extensive tenure in the finance industry, particularly with Tata Asset Management Pvt Ltd. He commenced his journey with Tata in September 2006, steadily progressing from Senior Manager of investments to his current role as Dealer, where he has served since June 2021. In his current capacity, he reports directly to the Chief Investment Officer – Equities (The scheme is new disclosure regarding the tenure of the fund manager is not applicable)

Peer comparison 

Scheme Name Launch Date AUM (Rs Crore) Expense Ratio (%) Returns as on – 05-04-2024 in %
2024 2023 2022 2021 2020
Kotak Nifty Financial Services Ex-Bank Index Fund Reg Gr 14-08-2023 14.98 0.88 6.59
Motilal Oswal S&P BSE Financials ex Bank 30 Index Fund Reg Gr 29-07-2022 11.24 1.01 7.99 31.5
Index Fund 5.42 21.46 1.91 27.96 15.29
Mirae Asset Nifty Financial Services ETF 30-07-2021 229.57 0.12 0.34 14.26 10.34
ICICI Pru Nifty Financial Services Ex-Bank ETF 25-11-2022 74.48 0.2 6.91 32.46
ETFs 3.36 20.91 3.44 21.68 13.63

Characteristics of Index Funds

  • Tracks a market index, aiming to mirror its performance.
  • Passively managed, with low fees compared to actively managed funds.
  • Offers broad diversification across multiple companies and sectors.
  • Targets long-term growth, matching the overall market’s returns.
  • Generally, less volatile than individual stocks, but still susceptible to market risk.

Ready to watch your savings grow? Try our SIP Plan Calculator today and unlock the potential of disciplined investing. Perfect for planning your financial future. Start now!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.

We're Live on WhatsApp! Join our channel for market insights & updates

Grow Wealth, Start SIP Now!

Start Your Mutual Fund Investments Journey Today

Join our 2 Cr+ happy customers

+91
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy Zero Brokerage on Equity Delivery

Get the link to download the App

Send App Link
Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Enjoy ₹0 Account Opening Charges