Priyanka Tiwari
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Suspense crime, Digital Desk : Tata Asset Management has announced the launch of a new fund offer (NFO) for investors looking to tap into the growth potential of mid-sized Indian companies. The new scheme is the Tata Nifty Midcap 150 Index Fund, an open-ended index fund designed to replicate the performance of the Nifty Midcap 150 Index.
The NFO period for this fund is set to open for subscription on Monday, June 3, 2024, and will conclude on June 17, 2024. Investors can start their investment journey in this fund with a minimum application amount of ₹5,000, and can invest in multiples of ₹1 thereafter.
The primary investment objective of the Tata Nifty Midcap 150 Index Fund is to achieve long-term capital appreciation. It aims to do this by investing in stocks that constitute the Nifty Midcap 150 Index, maintaining proportions that are similar to their weightage in the benchmark index, subject to tracking errors.
This new offering provides investors with an opportunity to gain diversified exposure to the mid-cap segment of the Indian equity market through a passive investment strategy. Mid-cap stocks represent companies that are typically in a growth phase, potentially offering higher returns than large-cap stocks, albeit often with a relatively higher degree of risk and volatility.
Being an index fund, it offers a cost-effective way to invest in a basket of mid-cap stocks, as fund management charges are generally lower compared to actively managed funds. The fund will be managed by Mr. Kapil Menon and Mr. Shailesh Jain.
Investors who are seeking long-term wealth creation and are comfortable with the risk profile associated with mid-cap equities might find this fund suitable for their investment portfolio. As with all mutual fund investments, it is crucial for investors to carefully read the Scheme Information Document (SID) and Key Information Memorandum (KIM) before making any investment decisions to understand the risks involved.
Once the NFO period concludes, the scheme will reopen for continuous subscription and redemption at Net Asset Value (NAV) based prices.
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