Tata Nifty India Tourism Index Fund NFO: Should you invest?

Published: 11th July 2024

By: Value Research

About the fund

Tata AMC has come out with its latest offering – the Tata Nifty India Tourism Index Fund. The NFO (new fund offer) opened for subscription on July 8, 2024, and will remain available until July 19, 2024.

What makes it unique?

It will be the first fund to invest only in travel and tourism companies.

NFO snapshot

Fund name Tata Nifty India Tourism Index Fund SEBI category Index fund NFO period July 8 to July 19, 2024 Fund manager Kapil Menon. He previously worked as a Dealer at the fund house for nearly two decades. Exit load Nil Tax treatment If units are sold within a year, capital gains will be taxed at 15 per cent.  If units are sold after one year, capital gains are taxed at 10 per cent. However, gains of up to Rs 1 lakh are tax-exempt.

Fund benchmark

The fund will be benchmarked against the Nifty India Tourism Index, which comprises 30 travel and tourism companies listed on the Nifty 500.

How will it invest?

Since it’s an index fund, it will invest in the stocks listed on the Nifty India Tourism Index in the same proportion as the latter.

About the tourism index

Although the index will be home to a maximum 30 companies, it currently is composed of just 17 companies, of which the top five companies account for a substantial 73 per cent of the index.

Why has Tata launched a tourism-based fund?

The travel and tourism sector is expected to compound annually between 7 and 9 per cent until 2030, as per World Travel and Tourism Council.

Should you consider investing in this NFO? How is the index’s long-term performance?

To find out, read the complete story by clicking the link below.

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