NFO Update: Tata Mutual Fund launches BSE Quality Index Fund
Index Fund, a factor-based index fund designed to provide investors with access to high-quality companies exhibiting strong financial health.
The new fund offer or NFO is open for subscription and will close on March 28.
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The index selects 30 top companies based on criteria that indicate a company's robustness, profitability, and operational efficiency and thus aims to provide a better investor experience, according to a release.
The Tata BSE Quality Index Fund aims to replicate the performance of the BSE Quality Index, which comprises companies selected based on quality parameters underlining high return on equity, low financial leverage, and low accrual ratio indicating quality of earnings.
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The index fund seeks to provide long-term growth as the 'Quality' score of the stocks is determined by high RoE (Return on Equity), low financial leverage and stable accruals ratio (measures the part of earnings from non-cash items).
The investment objective of the scheme is to provide returns, before expenses, that commensurate with the performance of BSE Quality Total Return Index (TRI), subject to tracking error.
The scheme will be benchmarked against Nifty Large Midcap 250 TRI and will be managed by Kapil Menon and Rakesh Prajapati.The minimum investment amount is Rs 5,000 and in multiples of Re 1