Publish Date:
Tata Mutual Fund has launched Tata Nifty200 Alpha 30 Index Fund
It is an open-ended scheme replicating / tracking Nifty200 Alpha 30 Index (TRI)
Alpha-generating mutual funds are investment vehicles that aim to deliver returns above a benchmark index, providing "alpha" which represents the excess return an investment achieves over its benchmark.
The Nifty 200 Alpha 30 Index is specifically designed to highlight the performance of stocks with high alpha potential, aiming to capture the top 30 companies from the Nifty 200 Index based on their alpha scores. The Nifty 200 Index represents the 200 largest and most liquid stocks in the Indian equity market, providing a broad measure of the market's performance.
However, the Nifty 200 Alpha 30 Index narrows this down to focus on the 30 stocks that are expected to offer superior risk-adjusted returns, based on their historical alpha performance. Mutual funds that target alpha generation often use benchmarks like the Nifty 200 Alpha 30 Index to evaluate their performance. By aligning their investment strategies with the characteristics of the Nifty 200 Alpha 30 Index, these funds seek to leverage opportunities within high-alpha stocks, aiming to deliver returns that exceed those of broader market indices.
[Read: Navigating the 2024 Market Volatility: Key Investment Strategies for Your MF Portfolio]
The investment objective of the scheme is to provide returns, before expenses, that commensurate with the performance of Nifty200 Alpha 30 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.
Under normal circumstances, Tata Nifty200 Alpha 30 Index Fund will hold an allocation of 95% to 100% in Securities covered by Nifty200 Alpha 30 Index and 0% to 5% in Debt / Money Market Instruments^ including units of Mutual Funds.
The Tata Nifty200 Alpha 30 Index Fund is a passively managed Index fund which will employ an investment approach designed to replicate / track the performance of the Nifty200 Alpha 30 Index (TRI). The Scheme seeks to achieve this goal by investing in securities constituting the Index in same proportion as in the Index.
The Scheme will invest at least 95% of its total assets in the securities comprising the Underlying Index. The Scheme may also invest in debt / money market instruments including units of Mutual Funds to meet the liquidity and expense requirements.
Tata Nifty200 Alpha 30 Index Fund is benchmarked against the Nifty200 Alpha 30 Index
Tata Nifty200 Alpha 30 Index Fund will be managed by Mr Kapil Menon
Tata Nifty200 Alpha 30 Index Fund is open for subscription from August 19, 2024 to September 02, 2024. The fund will reopen for continuous sale and repurchase on September 11, 2024.
The minimum subscription amount is Rs 5,000/- and in multiples of Re. 1 thereafter.
The fund offers Direct Plan and Regular Plan. Under each plan the fund offers Growth option and Income Distribution cum Capital Withdrawal.
The fund is ideal for those investors who would like to invest in passively managed fund investing in a portfolio of companies forming part of the Nifty200 Alpha 30 Index.