NFO Alert: Tata Mutual Fund Launches BSE Quality Index Fund

Tata Mutual Fund is launching the Tata BSE Quality Index Fund, an open-ended index fund that will track the BSE Quality Total Return Index (TRI). The New Fund Offer (NFO) will open on March 17, 2025, and close on March 23, 2025. The fund will allot units on April 3, 2025.

Objective and Strategy

The fund aims to replicate the returns of the BSE Quality TRI before expenses, subject to tracking error. It follows a passive investment approach, meaning it invests in the same stocks as the index in the same proportion.

The majority of assets, 95%-100%, will be allocated to stocks in the BSE Quality TRI. Up to 5% may be invested in debt and money market instruments for liquidity purposes.

Investment Requirements

• Minimum Investment: ₹5,000
• Additional Investment: ₹1,000 and above
• Minimum Redemption: ₹500 or 50 units, whichever is lower

Fund Plans and Options

Investors can choose between:

• Direct Plan (for those investing without a distributor)
• Regular Plan (for those investing through a distributor)

Each plan offers two options:

• Growth
• Income Distribution cum Capital Withdrawal (IDCW)

If no selection is made, the default option will be the Direct Plan – Growth.

Exit Load and Other Charges

• Entry Load: Nil
• Exit Load: 0.25% if units are redeemed within 15 days of allotment
• Stamp Duty: 0.005% on purchase transactions as per SEBI regulations

Conclusion

The fund is classified under the “Very High Risk” category, meaning its value can fluctuate based on stock market movements. The scheme will be managed by Kapil Menon, who handles other index funds at Tata Mutual Fund.

Investors should review all details before making a decision.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.