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Tata Mutual Fund has launched the Tata BSE Quality Index Fund. This fund is a factor-based index fund which will invest in high quality companies exhibiting strong financial health.
The fund will replicate the performance of the BSE Quality Index.
Anand Vardarajan, Chief Business Officer, Tata MF said, " Tata BSE Quality Index Fund gives investors a unique opportunity to invest in high-quality companies. This is our third factor-based fund. The quality factor tends to perform better during weak economic phases compared to its broader universe, thus seeking to offer investors a necessary cushion during market downturns. By focusing on quality, we aim to provide a better investment experience and growth over the long-term.”
He further said that factor-based investing or smart beta investing, involves targeting specific drivers of returns, such as quality, value, or momentum. The quality factor, in particular, has demonstrated resilience during periods of economic uncertainty, providing investors with a cushion against market downturns.
