Tata Asset Management Launches India's First Tourism Index Fund

Tags: Economy/Finance

Tata Asset Management has launched India's first tourism index fund, named the Tata Nifty India Tourism Index Fund.

An Overview of the News

• The fund aims to provide investors exposure to India's growing travel, tourism, and hospitality sectors by tracking the Nifty India Tourism Index (Total Returns Index).

Key Features:

• Open for subscription from July 8 to July 19, 2024, with a potential re-opening on or before July 29, 2024.

• Managed by Kapil Menon, the fund currently consists of 17 stocks from the Nifty 500 as of June 21, 2024.

• It includes stocks from hotels and resorts (32%), airlines (19%), restaurants (19%), tour and travel services (16%), airports and services (10%), and luggage (3%).

• Each stock is capped at 20%, ensuring diversification with a maximum of 30 stocks in the index.

Investment Strategy:

• Focuses on minimizing tracking errors through strategic portfolio rebalancing.

• Manages cash flows efficiently to maintain low cash levels and optimize deployment.

Investment Details:

• Minimum investment of ₹5,000 during the NFO period, with subsequent investments in multiples of ₹1.

• Exit load of 0.25% if redeemed within 15 days from the date of allotment, no entry load applicable.

Potential Returns: While aiming to match the performance of the Nifty India Tourism Index (TRI), the fund does not guarantee returns but aims to capitalize on the sector's growth potential.