Tata Nifty Capital Markets Index Fund Files Draft with SEBI

Fund Objective

The objective of the Tata Nifty Capital Markets Index Fund is to replicate or track the performance of the Nifty Capital Markets Index (TRI). The fund aims to provide returns that align with the index’s performance before accounting for expenses. However, it’s important to note that the fund does not guarantee or assure any returns to investors

Category of the Scheme

The Tata Nifty Capital Markets Index Fund falls under the Other Schemes – Index Fund category. It is an open-ended scheme designed to replicate or track the Nifty Capital Markets Index (TRI)​

Asset Allocation

The Tata Nifty Capital Markets Index Fund will primarily invest in securities covered by the Nifty Capital Markets Index. The asset allocation is as follows:

• 95% – 100%: Investment in equity and equity-related instruments constituting the Nifty Capital Markets Index. This portion will have a very high-risk profile.
• 0% – 5%: Allocation to debt and money market instruments, including units of mutual funds, to manage liquidity. This portion carries a low-risk profile.

The fund may also invest in derivatives of constituents of the underlying index for short durations when securities are unavailable or insufficient. Additionally, up to 5% of the net assets may be invested in debt and money market instruments to meet liquidity needs

Who Manages the Fund?

The fund will be managed by Kapil Menon, a seasoned investment professional with over 20 years of experience in the financial sector. Kapil is also responsible for managing several other Tata index funds, such as Tata BSE Sensex Index Fund, Tata Nifty 50 Index Fund, and Tata Nifty Financial Services Index Fund

Benchmark Index

The performance of the Tata Nifty Capital Markets Index Fund will be benchmarked against the Nifty Capital Markets Index (TRI). This index is composed of securities from the capital markets sector, and the fund’s performance will be evaluated based on how well it mirrors this index

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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.