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.
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