Tata Asset Management has introduced the Tata Nifty200 Alpha 30 Index Fund, designed to track the top 30 companies with the highest alpha in the Nifty 200 index.
Investors can subscribe to this New Fund Offer (NFO) until September 2.
The fund will employ an alpha-based passive investment strategy,
increasing investment in high-performing stocks and sectors while reducing exposure to underperforming ones.
Aim to achieve returns higher than the Nifty 200 index
This fund aims to achieve higher returns than the Nifty 200 Index.
Historically, the Nifty 200 Alpha 30 Index has outperformed market cap-weighted indices like the Nifty 200 during strong market periods.
However, its performance can lag during market downturns.
Anand Varadarajan, Chief Business Officer of Tata Asset Management, discussed the potential for this fund to deliver better returns than the Nifty 200 Index.
Helpful in diversification of portfolio
He mentioned that this strategy is intended to deliver extra alpha by choosing the top 30 stocks with the highest potential.
Additionally, the fund aids in diversifying the investor’s portfolio.
However, investors should remember that while the fund aims to provide superior returns, it does not guarantee specific performance.
The minimum investment for the NFO is Rs 5,000
This fund will be available for investment again on or before September 11, 2024.
During the New Fund Offer (NFO) period, you can invest in this fund with a minimum amount of Rs 5,000.
There is no entry load for this fund. However, if you redeem (sell) the units within 15 days of allotment, a fee of 0.25% will apply.
This fund is suitable for investors looking to benefit from alpha-based investing.
However, it’s important to understand the risks, especially considering that the fund may perform poorly during market downturns.
