Tata launches six sectoral and thematic funds: Should you invest?

Published: 12 April 2024

About the NFO

Recently, Tata introduced six sectoral and thematic NFOs (new fund offers). These funds were opened for subscription on April 8, 2024, and will remain available till April 22, 2024

Which funds are these?

They will be passively managed and target the automobile, financial services, healthcare, infrastructure, manufacturing, and real estate sectors. Let’s examine each one.

#1 Tata Nifty MidSmall Healthcare Index Fund

Benchmark: Nifty MidSmall Healthcare Index (TRI), Index performance (%): 3-yr: 23.4, 5-yr: 21.4, 10-yr: 15.7

#2 Tata Nifty 500 Multicap India Manufacturing 50:30:20 Index Fund

Benchmark: Nifty 500 Multicap Manufacturing 50:30:20 Index (TRI), Index performance (%): 3-yr: 23.4, 5-yr: 21.4, 10-yr: 15.7

#3 Tata Nifty 500 Multicap Infrastructure 50:30:20 Index Fund

Benchmark: Nifty 500 Multicap Infrastructure 50:30:20 Index (TRI), Index performance (%): 3-yr: 29.1, 5-yr: 22.7 10-yr: 17.1

#4 Tata Nifty Realty Index Fund

Benchmark: Nifty Realty Index (TRI), Index performance (%): 3-yr: 42.5, 5-yr: 28.3, 10-yr: 16.9

#5 Tata Nifty Auto Index Fund

Benchmark: Nifty Auto Index (TRI), Index performance (%): 3-yr: 15.3, 5-yr: 14.5, 10-yr: 14.3

#6 Tata Nifty Financial Services Index Fund

Benchmark: Nifty Financial Services Index (TRI), Index performance (%): 3-yr: 12.1, 5-yr: 11.8, 10-yr: 15.0

Who is the fund manager?

Kapil Menon, who previously worked as a Dealer at the fund house, will oversee the management of the six schemes.

Our view

While such funds aim to provide exposure to certain industries, concentration in a particular sector makes these funds more volatile. Thus, we suggest you avoid investing in them.