Tata Mutual Fund has filed draft documents with the Securities and Exchange Board of India (SEBI) to launch the Tata BSE Multicap Consumption 50:30:20 Index Fund, an open-ended index scheme designed to replicate the performance of the BSE Multicap Consumption 50:30:20 Index (TRI).
Investment Objective
The fund seeks to generate returns that closely correspond to the total returns of the BSE Multicap Consumption 50:30:20 Index, subject to tracking error. It will invest primarily in securities forming part of the benchmark index and mirror their weightage in the same proportion. The scheme does not guarantee or assure returns.
Asset Allocation
- Equity and equity-related securities of index constituents: 95%–100%
- Debt and money market instruments: up to 5% for liquidity management
The fund will not invest in overseas securities, REITs, InvITs, or structured debt instruments. Use of equity derivatives will be permitted only for short-term hedging or portfolio rebalancing.
Benchmark and Index Composition
The BSE Multicap Consumption 50:30:20 Index (TRI) serves as the benchmark. It represents a diversified mix of consumer discretionary and FMCG sector companies within the BSE 500 universe, maintaining a 50% allocation to large-caps, 30% to mid-caps, and 20% to small-caps.
Key constituents include ITC Ltd, Mahindra & Mahindra, Hindustan Unilever, and Maruti Suzuki.
Fund Details
- Scheme Type: Open-ended index fund
- NFO Price: ₹10 per unit
- Minimum Investment: ₹5,000 (in multiples of ₹1 thereafter)
- Entry Load: Nil
- Exit Load: 0.25% if redeemed within 15 days of allotment
- Fund Manager: Nitin Bharat Sharma
- Total Expense Ratio: Capped at 1% of daily net assets, in line with SEBI guidelines
Summary
Tata Mutual Fund has proposed the launch of the Tata BSE Multicap Consumption 50:30:20 Index Fund, which will track a diversified consumption-oriented benchmark spanning large-, mid-, and small-cap companies in a 50:30:20 ratio. The scheme aims to mirror the performance of the BSE Multicap Consumption Index (TRI), offering investors exposure to key consumer and FMCG players in India.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.