NFO Alert: Tata Mutual Fund launches the Tata Nifty Financial Services Index Fund; all you need to know
investment objective of the scheme is to provide returns, before expenses, that commensurate with the performance of the Nifty Financial Services Index (TRI), subject to tracking error. There is no assurance or guarantee that the investment objective of the scheme will be achieved. The scheme does not assure or guarantee any returns.
This fund aims to replicate the NIFTY Financial Services Index (TRI), offering exposure to a diverse range of financial services companies poised for potential growth. The Indian banking industry is currently witnessing remarkable growth, underscored by its strong asset quality and robust performance metrics. With a low default rate of 2.9%, attributed to minimal Gross Non-Performing Assets (GNPAs), the sector showcases resilient asset quality.
Notably, the industry has experienced significant credit growth at 21%, coupled with a commendable 14% growth in deposits, reflecting a healthy financial ecosystem. Furthermore, the increasing adoption of digital banking services is evident, with a notable 57% year-on-year growth in Unified Payments Interface (UPI) volume. (Source: BCG Banking Sector Roundup 9MFY24). Investors can invest under the scheme with a minimum investment of ₹5000 per plan/option and in multiples of Re 1.
There is no upper limit for investment. Under normal circumstances, the asset allocation of the scheme will be as follows:Indicative allocations (% of total assets)MinimumMaximumSecurities covered by the Nifty Financial Services Index95%100%Very HighDebt & Money Market Instruments including units of Mutual Funds0%5%Low To date, no asset management company has launched any such fund that tracks the Nifty Financial Services Index Fund. The performance of the scheme is measured
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