What’s the story
Tata Asset Management has launched India‘s first multi-cap consumption index fund, the Tata BSE Multicap Consumption 50:30:20 Index Fund.
The open-ended scheme provides diversified exposure to large-, mid-, and small-cap consumption stocks.
It aims to replicate the BSE Multicap Consumption 50:30:20 Index (TRI).
The fund’s New Fund Offer (NFO) will close on December 23.
Fund’s structure and investment strategy
The Tata BSE Multicap Consumption 50:30:20 Index Fund is designed to offer a mix of stability and growth by combining large-cap stocks with mid- and small-cap companies.
This strategy tackles the concentration risks often seen in traditional consumption-focused indices.
The underlying index picks the top 100 companies from the BSE 500 universe in consumer discretionary and FMCG sectors, based on a six-month average market capitalization.
Allocation and rebalancing strategy
The 50:30:20 allocation of the Tata BSE Multicap Consumption 50:30:20 Index Fund stands for 50% large-cap, 30% mid-cap, and 20% small-cap stocks.
The index is reconstituted and rebalanced semi-annually in June and December.
Anand Vardarajan, Chief Business Officer at Tata Asset Management, said, “Consumption is a long-term structural theme for India.”
He added that while large caps offer stability, the mid- and small-caps capture emerging consumption trends in quick commerce, travel, and digital entertainment.
Entry and exit load details
The Tata BSE Multicap Consumption 50:30:20 Index Fund does not charge an entry load.
However, an exit load of 0.25% is applicable if units are redeemed within 15 days of allotment.
The minimum subscription amount for this fund is ₹5,000 with additional investments permitted in multiples of ₹1.
This makes it accessible to a wide range of investors looking to diversify their portfolios with consumption-focused stocks across market caps.
