Portfolio Positioning and Construction
The fund aims to replicate the BSE Quality Index with the below methodology:
- The index aims to track the performance of the 30 highest quality companies in the BSE LargeMidCap, based on their quality scores.
- Stock Selection Criteria:
- Companies are evaluated in terms of 3 fundamental ratios namely Return to Equity Ratio, Accruals Ratio, Financial Leverage Ratio from the investment universe of BSE LargeMidCap.
- Companies satisfying the eligibility criteria are ranked based on their quality scores.
- The top 24 companies (whether a current constituent or not) are selected for index inclusion. Existing constituents ranked 25-36 are selected in order of highest rank until the target constituent count of 30 is reached. If, after this step, the target constituent count is not achieved, then non-constituents are selected in order of highest rank until the target constituent count is reached.
- Accruals Ratio is not considered for the calculation of Quality score for the companies belonging to Financial Services and Reality Sectors.
• Industry/Stock capping:
Stock cap: lower of 5% or 20 times its float-adjusted market capitalization.
Industry cap: 30% maximum weight of any given common India Industry Classification Structure macro-economic indicator. Index constituents that are classified as part of the Diversified sector are treated as if they are part of the Industrials sector for index purposes.
• Index Rebalancing:
The index is rebalanced semi-annually in the months of March and September.
(source: https://www.tatamutualfund.com/)
Tata BSE Quality Index Fund NFO Details
| Mutual Fund | Tata Mutual Fund |
| Scheme Name | Tata BSE Quality Index Fund |
| Objective of Scheme | 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. However, 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. |
| Scheme Type | Open Ended |
| Scheme Category | Other Scheme – Index Funds |
| New Fund Launch Date | 17-Mar-2025 |
| New Fund Earliest Closure Date | |
| New Fund Offer Closure Date | 28-Mar-2025 |
| Indicate Load Seperately | Entry load: Not Applicable (Pursuant to provision no. 10.4.1.a of SEBI Master Circular on Mutual Fund dated June 27, 2024, no entry load will be charged by the Scheme to the investor) Exit Load: 0.25% of the applicable NAV, if redeemed on or before 15 days from the date of allotment. Goods & Service Tax on exit load, if any, will be paid out of the exit load proceeds and exit load net of Goods & Service Tax, if any, will be credited to the scheme. |
| Minimum Subscription Amount | Rs. 5,000/- |
| For Further Details Please Visit Website | https://www.tatamutualfund.com |
(source:https://www.amfiindia.com/)
Tata BSE Quality Index Fund NFO
Application Form
Scheme Documents
(source:https://www.tatamutualfund.com/)
