Tata Asset Management Private Limited (TAMPL) manages investments of Tata Mutual Fund. TATA is one of the pioneers of the Indian Mutual Fund Industry. With an average AUM of almost Rs 1.5 Lakh crore, the AMC is among the oldest in the country. It has a track record of 30 years in investment management.
Let us get to know about – Tata Nifty 50 Index Fund.
About Tata India Consumer Fund
Investment Objective – It is an open-ended equity scheme tracking Nifty 50 Index. The investment objective of the scheme is to reflect/mirror the market returns with a minimum tracking error. However, the scheme does not assure or guarantee any returns.
Investment Philosophy
The scheme is a passively managed index fund which will employ an investment approach designed to track the performance of Nifty 50 Index.
The scheme seeks to invest in securities constituting the Nifty 50 Index in same proportion as in the index. It will invest at least 95% of its total assets in the securities comprising the underlying index.
The scheme may also invest in money market instruments to meet the liquidity and expense requirements.
Portfolio Composition
The portfolio comprises 99.86% allocation in Equity and the remaining 0.14% is held in cash and cash equivalents.
Top 5 Holdings for Tata Nifty 50 Index Fund
| Name | Sector | Weightage % |
| HDFC Bank | Financial | 11.46 |
| Reliance Ind | Energy & Utilities | 9.95 |
| ICICI Bank | Financial | 8.10 |
| Infosys | Technology | 5.08 |
| Larsen & Toubro | Industrials | 4.26 |
Source: Value Research
Performance Since Inception
| Period | Tata Nifty 50 Index Fund return (Annualised) (%) | Benchmark (%) |
| 1 Year | 25.87 | 26.27 |
| 3 Years | 16.61 | 16.92 |
| 5 Years | 14.95 | 15.30 |
| Since Inception | 13.53 | 13.85 |
Benchmark: Nifty 50 TRI, Inception date: 25th February, 2003
Source: tatamutualfund.com
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Fund Manager
The fund is managed by Mr. Sonam Udasi and Mr. Kapil Menon. Mrr Sonam Udasi is backed with 25 years of his expertise in Equities Research is presently the Senior Fund Manager for multiple equity schemes at Tata Asset Management, since 1st April, 2016. He has joined TATA Asset Management Pvt. Ltd. As Head of Research in April 2014
Who Should Invest in Tata Nifty 50 Index Fund?
This fund is suitable for Investors
- Who are seeking Long Term Capital Appreciation.
- Who would like to invest in passively managed fund investing in a diversified portfolio of well-known companies as represented by Nifty 50 Index.
Ideal Time to Stay Invested
- A minimum investment period here is 3 to 5 years.
Conclusion
Index funds can be a prudent investment option given the limited possibility of alpha generation in the large cap sector. If your investment horizon is long and want to participate in India’s growth story by investing in well-diversified portfolio of well-known large cap companies comprising the index you can consider looking at this fund.
Disclaimer: This is not recommendation advice. All information in this blog is for educational purposes only.
