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The new fund offer or NFO of the scheme is open for subscription and will close on July 19. The scheme will reopen for continuous sale and repurchase on or before July 29.
The investment objective of the scheme is to provide returns, before expenses, that commensurate with the performance of Nifty India Tourism Index (TRI), subject to tracking error.
The Tata Nifty India Tourism Index Fund will track the Nifty India Tourism Index (TRI, i.e., total returns index). The scheme will be managed by Kapil Menon.
The minimum application amount is Rs 5,000 and in multiples of Re 1 thereafter. An exit load of 0.25 % of the applicable NAV will be applied, if redeemed on or before 15 days from the date of allotment.
The fund will allocate 95-100% in securities covered by Nifty India Tourism Index and 0-5% in debt / money market instruments including units of mutual funds. The maximum total expenses ratio (TER) permissible under Regulation 52 (6) (d) (ii) is upto 1%.
The fund is an open-ended index fund that has been meticulously designed to provide investors with exposure to India’s fastest growing companies from travel, tourism and hospitality businesses. The companies forming the index are leaders in their respective segments and have benefitted from the rising disposable income levels, evolving tastes of the Indian consumer and sustained higher discretionary spends, according to the press release by the fund house.
The fund is ideal for those investors who would like to invest in a passively managed fund investing in a portfolio of companies forming part of the Tourism as represented by Index.
“High disposable income, infrastructure developments like better highway connectivity, improved railway comfort & speed and so many new airports have made travel easy, swift and safe. We are witnessing exponential growth in domestic aviation, hotels, restaurants and travel which augurs very well for the tourism segment. All types of travel, be it pilgrimage, business, medical or leisure are registering a surge. This makes a compelling case for looking at tourism as a segment and how one could invest and aim to benefit from the growth of this sector,” said Anand Vardarajan, Chief Business Officer, Tata Mutual Fund.
The scheme is suitable for investors who are seeking long-term capital appreciation and want investment in equity and equity related instruments included in Nifty India Tourism Index.
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