The Tata Nifty India Tourism Index Fund is a new open-ended index fund. It offers investors exposure to India’s rapidly growing tourism sector. Here’s a detailed understanding of the fund based on the available information:
Overview
- Investment Objective: The fund aims to deliver returns that are in line with the performance of the Nifty India Tourism Index (TRI), subject to tracking error. There are no assurances or guarantees regarding the achievement of the investment objective.
- Type of Scheme: It is an open-ended scheme that replicates or tracks the Nifty India Tourism Index, which includes various segments of the tourism industry such as hotels, airlines, airports, restaurants, and travel services.
Key Features
- Fund Manager: Kapil Menon manages the fund.
- Benchmark: The fund’s performance is benchmarked against the Nifty India Tourism Index (TRI).
- Minimum Investment: The minimum investment required is ₹5,000, with subsequent investments in multiples of ₹1.
- Expense Ratio: The fund has a maximum total expense ratio (TER) capped at 1%, making it a cost-effective option for investors.
- Exit Load: A 0.25% exit load applies if you redeem units within 15 days of allotment. There is no entry load.
Investment Strategy
- Asset Allocation: The fund will primarily invest 95-100% of its assets in securities that are part of the Nifty India Tourism Index. It may also allocate up to 5% in debt and money market instruments.
- Target Market: The fund is designed to capture the full spectrum of the travel and tourism sector, including companies involved in manufacturing travel-related products like luggage.
Suitability
The Tata Nifty India Tourism Index Fund is suitable for:
- Long-Term Growth Seekers: Investors with a long-term investment horizon who believe in the growth potential of the Indian tourism sector.
- Risk-Tolerant Investors: Those with a high-risk appetite looking for sector-specific investments.
- Focused Investors: Individuals seeking concentrated exposure to the tourism segment without broad diversification.
Market Context
The fund stands to gain from the rise in domestic travel in India, especially after COVID. More people now want to explore their own country. This trend could boost the tourism sector, making the fund attractive to investors eager to seize this opportunity. The Tata Nifty India Tourism Index Fund provides a strategic investment option for those eyeing the growing tourism market in India. It is backed by a transparent and cost-effective index fund structure.
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