NFOs: 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). The NFO of this scheme is currently available for subscription and will be open until December 9. After closing, the scheme will re-open for continuous sales and repurchases on December 18.
This fund presents a fresh investment opportunity for investors seeking exposure to India’s prominent conglomerates. The Tata BSE Select Business Group Index Fund mirrors the BSE Select Business Groups index, which includes companies from seven of India’s largest business groups.
How much tax do I have to pay? Calculate now
The fund will consist of 30 companies from key sectors driving India’s future growth, excluding the financial services sector to focus on other industries. The seven business groups included in the fund are Tata Group, Reliance Industries, Adani Group, Aditya Birla Group, L&T, Jindal Group, and Mahindra Group. Each group’s weightage is capped at 23% based on their free-float market capitalization, according to a statement from the fund house. These conglomerates represent 19 diverse industries, showcasing central themes of India’s economic growth.
The Tata BSE Select Business Group Index Fund is an open-ended fund that is available for both subscription and redemption. The weightage for each group is limited to 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%. This scheme will be compared to the BSE Select Business Groups Index (TRI) and will be overseen by Kapil Menon.
An exit load of 0.25% of the applicable NAV will be charged if 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.
The scheme is ideal for investors looking for long-term capital growth and interested in investing in equity and equity-related instruments included in the BSE Select Business Groups Index.
Union Active Momentum Fund
Union Mutual Fund recently introduced the Union Active Momentum Fund, marking its foray into factor-based investing. This new fund offers an investment strategy centered on stocks exhibiting significant momentum.
The NFO for this fund opened for subscriptions on November 28, with the closing date set for December 12, 2024. Subscriptions will reopen within 5 business days after allotment.
Equity investment: This fund is an open-ended equity fund that utilizes a proprietary quantitative model which has been back tested for over 15 years.
Momentum investing: The fund employs a Momentum investing strategy. According to Gaurav Chopra, one of the fund managers of Union Active Momentum Fund, Momentum Investing is a rule-based approach that focuses on working with volatility, buying securities that are rising in value, and selling them as they begin to lose momentum.
Rules-based investing and bias: The fund seeks to offer investors a rules-based strategy for investing in stocks that display momentum characteristics. Investments are made solely based on a rule-based mechanical approach, thereby eliminating emotional biases.
This post was originally published on here
