Tata Mutual Fund Launches Tata BSE Business Group Index Fund

Kolkata: In a move to tap into the growing interest of investors seeking exposure to India's prominent conglomerates, Tata Mutual Fund has introduced the Tata BSE Business Group Index Fund, an open-ended scheme that replicates the BSE Select Business Groups Index (TRI).

Submissions for this non-competitive offering (NFO) are currently being accepted, and will close on December 9. After closing, the fund will reopen for continuous sales and repurchases on December 18.

The Tata BSE Select Business Group Index Fund offers investors a fresh opportunity to invest in India's largest business groups, comprising Tata Group, Reliance Industries, Adani Group, Aditya Birla Group, L&T, Jindal Group, and Mahindra Group. These conglomerates are expected to drive growth in key sectors of the Indian economy.

According to a statement from the fund house, each group's weightage is capped at 23% based on their free-float market capitalization. As of now, the Tata Group holds a weightage of 22.7%, Reliance Industries at 22.3%, and L&T Group at 15%.

A 0.25% exit load of the applicable Net Asset Value will be charged if investments are redeemed within 15 days from the date of allotment. The minimum investment amount is Rs 5,000, with subsequent investments in multiples of Re 1.

Investors seeking long-term capital growth and keen to invest in equity and equity-related instruments will find this scheme attractive.

Meanwhile, Union Mutual Fund has also launched its NFO - Union Active Momentum Fund, which employs a factor-based investing strategy centered on stocks exhibiting significant momentum. The fund offers a proprietary quantitative model that has been back-tested for over 15 years.

The fund's manager, Gaurav Chopra, explained that the momentum investing strategy focuses on working with volatility, buying securities that are rising in value, and selling them as they begin to lose momentum. All investments will be made solely based on a rule-based mechanical approach, eliminating emotional biases.

Key highlights of the Union Active Momentum Fund include:

• Opening date: November 28
• Closing date: December 12, 2024
• Subscription deadline within 5 business days after allotment

Investors can now evaluate these two new NFOs and decide on which one best suits their investment goals.