Tata Mutual Fund Filed Draft For BSE Multicap Consumption 50:30:20 Index Fund With SEBI

Tata Mutual Fund has filed draft documents with SEBI for the Tata BSE Multicap Consumption 50:30:20 Index Fund. It is an open-ended index scheme that will track the BSE Multicap Consumption 50:30:20 Index (TRI). The fund’s structure is to maintain exposure across large, mid, and small-cap companies in a 50:30:20 ratio.

Investment Objective

The scheme aims to generate returns corresponding to the total returns of the BSE Multicap Consumption 50:30:20 Index, subject to tracking error. The fund does not assure or guarantee returns. It will primarily invest in the securities forming part of the index and replicate their weightage in the same proportion.

Asset Allocation

The scheme will invest between 95% and 100% of its assets in securities covered by the BSE Multicap Consumption 50:30:20 Index and up to 5% in debt or money market instruments for liquidity needs. 

No investments will be made in overseas securities, REITs, InvITs, or structured debt instruments. The fund may use equity derivatives of index constituents when required for short durations.

Benchmark and Index Composition

The fund’s benchmark is the BSE Multicap Consumption 50:30:20 Index (TRI). The index includes companies from the consumer discretionary and FMCG sectors within the BSE 500 universe. It follows a 50% allocation to large-caps, 30% to mid-caps, and 20% to small-caps. Major index constituents include ITC Ltd, Mahindra & Mahindra, Hindustan Unilever, and Maruti Suzuki.

Fund Details

The New Fund Offer (NFO) will issue units at ₹10 each. The minimum subscription amount is ₹5,000, and additional investments can be made in multiples of ₹1. There will be no entry load, while an exit load of 0.25% will apply if units are redeemed within 15 days from allotment.

The fund will be managed by Nitin Bharat Sharma. The total expense ratio is capped at 1% of daily net assets, as per SEBI regulations.

Read More: Upcoming NFO: Abakkus Liquid Fund Files Draft With SEBI!

Conclusion

The scheme is awaiting SEBI approval and will open for subscription after final clearance. It is part of Tata Mutual Fund’s index-based offerings.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.