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Tata Mutual Fund has launched six index funds focusing on different sectors that can benefit from the current economic landscape. Let us look at these funds:
Tata Nifty 500 Multicap 50:30:20 Infrastructure Index Fund: This scheme aims to replicate the performance of the Nifty 500 Multicap Infrastructure Index with a strategic allocation ratio of 50:30:20 across large-cap, mid-cap, and small-cap companies
Tata Nifty MidSmall Healthcare Index Fund: This fund mirrors the Nifty MidSmall Healthcare Index, capitalizing on the favorable factors driving the healthcare industry.
Tata Nifty Realty Index Fund: The index fund is positioned to tap into the real estate sector.
Tata Nifty Financial Services Index Fund: This fund aims to replicate the NIFTY Financial Services Index (TRI).
Tata Nifty Auto Index Fund: The fund seeks to replicate the Nifty Auto Index and is designed to reflect the performance of the automobiles sector which includes manufacturers of cars, motorcycles, heavy vehicles, auto ancillaries.
Tata Nifty 500 Multicap India Manufacturing 50:30:20 Index Fund: The funds focusses on top-performing stocks from diverse sectors within the manufacturing theme.
In a press release, Anand Vardarajan, Business Head at Tata Asset Management said: " We have come up with 6 index funds which could participate in the overall India growth story. The decision to introduce these index funds is backed by rising income levels and compelling consumer trends. Rising auto demand with sustainability and green energy are powering the growth of this sector. Factories are operating at near-maximum capacity, indicating near peak production capacity spurring manufacturing growth. The healthcare industry presents potential opportunities driven by strong margins, stabilized pricing pressures in international markets, and increasing health awareness. The real estate sector is buoyed by robust residential demand, rapid sales velocity, and a resilient balance sheet post-RERA implementation. The BFSI sector has demonstrated resilience amidst various challenges, potentially benefitting from economic growth, increased disposable incomes, and technological advancements. Infrastructure connectivity increases ease of travel and presents a good long-term potential for growth."
