NFO alert: Tata Asset Management has launched the Tata India Innovation Fund, which aims to provide investors with the opportunity for long-term capital appreciation by investing in companies that are actively adopting innovative strategies and themes across various sectors. The NFO is set to commence on November 11, 2024, and will close on November 25, 2024.
The fund will focus on targeting companies that are driving transformative innovation through research & development and cutting-edge technologies such as machine learning, artificial intelligence, and digital transformation.
“India’s financial services industry has harnessed Digital Public Infrastructure to usher the country into a new digital era, significantly expanding financial inclusion nationwide. In line with the global climate action standards, India’s electric vehicle (EV) sector, battery technology, and renewable energy segments are witnessing considerable investment and growth momentum. At the same time, substantial R&D investments in the pharmaceutical and healthcare sectors are positioning India as a global hub for research and manufacturing,” Tata Asset Management said in a note.
Key features:
> The Tata India Innovation Fund will utilize a bottom-up innovation-driven stock selection strategy, providing a blend of valuation stability and growth opportunities.
> The scheme aims to offer investors the chance for long-term capital growth by investing in equity and equity-related instruments of companies utilizing innovative strategies and themes. Please note that while efforts will be made to achieve this objective, there is no guarantee of success. As such, the scheme does not promise any specific returns.
> Scheme Type: Open-ended scheme focusing on the innovation theme.
> Companies that utilize research & development (R&D) and cutting-edge technologies such as machine learning, artificial intelligence, and digital transformation.
> Benchmark: Nifty 500
> Minimum Application Amount: Minimum investment amount is Rs 5,000, with subsequent investments in multiples of Rs 1.
> Fund Managers: Meeta Shetty and Kapil Malhotra are the fund managers, overseeing the overseas portfolio.
> Exit Load: An exit load of 1% of the applicable net asset value (NAV) will be charged if redeemed within 90 days from the date of allotment.
“Two things matter in investing: identifying a company which will be around for the next 10 + years and its ability to make money over the next decade. Having just one of them is not enough. Among other things, what gives them right to win is innovation. Thats the one thing which helps survival and growth. This comes through incremental and break through innovation. Innovation gives competitive advantage and ability to stay ahead. India is at the forefront of digital,
manufacturing and services innovation leading to a great number of opportunities. The fund aims to capture some of these opportunities in companies which aim to thrive and grow,” said Anand Vardarajan, Chief Business Officer at Tata Asset Management.
Nippon India Nifty Realty Index Fund and Nippon India Nifty Auto Index Fund
Nippon India Mutual Fund has introduced two index funds: Nippon India Nifty Realty Index Fund and Nippon India Nifty Auto Index Fund. The New Fund Offer (NFO) for these schemes will be available for subscription from November 14 to November 28, with continuous sale and repurchase starting on December 10. Investors can apply for both schemes with a minimum amount of Rs 1,000 and in multiples of Re 1 thereafter. The fund manager for both schemes will be Himanshu Mange.
These schemes are ideal for investors seeking long-term capital growth and interested in equity and equity-related securities that replicate the composition of the underlying index, with tracking errors considered.
Nippon India Nifty Realty Index Fund
The Nippon India Nifty Realty Index Fund is an open-ended scheme designed to mirror the performance of the Nifty Realty Index. The primary goal of this scheme is to provide investors with returns that closely align with the total returns of the securities included in the Nifty Realty Index, accounting for expenses and potential tracking errors.
The scheme will be evaluated against the Nifty Realty TRI benchmark. Investors can expect the scheme to allocate between 95-100% of its assets in securities from the Nifty Realty Index, with the remaining 0-5% in cash, cash equivalents, money market instruments, or schemes primarily focused on money market securities or liquid schemes.
Nippon India Nifty Auto Index Fund
The Nippon India Nifty Auto Index Fund is an open-ended scheme designed to mirror the performance of the Nifty Auto Index. The main goal of this fund is to generate investment returns that closely correlate with the total returns of the securities in the Nifty Auto Index, minus expenses, while taking into consideration any tracking errors.
The scheme will be compared to the Nifty Auto TRI benchmark. The fund will primarily invest 95-100% in securities that make up the Nifty Auto Index, with a small allocation of 0-5% in cash, cash equivalents, money market instruments, or schemes focused on money market securities or liquid schemes.
