Tata Asset Management launches first index fund based on BSE Select Business Groups Index to invest in India’s future

Tata Asset Management Launches Tata BSE Business Group Index Fund

Mumbai, December 5, 2024 – Tata Asset Management has launched the Tata BSE Select Business Group Index Fund, an innovative investment offering that gives investors diversified exposure to India's top conglomerates. The New Fund Offer (NFO) opened on November 25, 2024, and will close on December 9, 2024.

The fund tracks the BSE Select Business Groups Index, which comprises 30 companies across 19 industries from seven of India’s largest business houses. The included groups are:

Tata Group

Reliance Industries

Adani Group

Aditya Birla Group

L&T

Jindal Group

Mahindra Group

Each group’s weight in the index is capped at 23% based on their free-float market capitalization, ensuring balanced exposure and preventing overconcentration. As of now:

Tata Group holds a weight of 22.7%

Reliance Industries holds 22.3%

L&T Group holds 15%

Key Fund Features

Excludes financial services, focusing on non-financial sectors to diversify industry exposure.

Offers exposure to emerging and future-forward sectors such as:

Electric vehicles & battery tech

Green energy

Smart cities

AI & quantum computing

Defense & aerospace

Strategic Vision

India’s economy, currently valued over USD 3.7 trillion and ranked the fifth-largest globally, is projected to become the third-largest by 2028. These conglomerates are seen as essential drivers of that transformation.

Anand Vardarajan, Chief Business Officer, said:

“We’re proud to bring this unique opportunity to investors through the Tata BSE Select Business Group Index Fund. It enables participation in the growth of India's top conglomerates—diversified, resilient, and central to India’s economic ambition. Investors can benefit from a diversified portfolio rooted in powerful, future-ready businesses.”

The fund is open-ended, with continuous subscription and redemption post-NFO. It offers a structured, thematic way to invest in India's economic growth via industry-leading conglomerates.