Tata Asset Management has launched the Tata BSE Quality Index Fund today, March 18, according to an official statement. The index selects 30 top companies based on criteria that indicate a company’s robustness, profitability, and operational efficiency and thus aims to provide a better investor experience.
The Tata BSE Quality Index Fund aims to replicate the performance of the BSE Quality Index, which comprises companies selected based on quality parameters underlining high return on equity, low financial leverage, and low accrual ratio indicating quality of earnings.
BSE Quality Index Fund: Subscription Date
The fund opened on March 17, 2025, and will close on March 28, 2025.
“As our third factor-based index fund, this launch reinforces our commitment to providing diverse investment options. The quality factor tends to perform better during weak economic phases compared to its broader universe, thus seeking to offer investors a necessary cushion during market downturns. By focusing on quality, we aim to provide a better investment experience and growth over long term,” said Anand Vardarajan, chief business officer at Tata Asset Management.
By incorporating the quality factor into the investment strategy, the Tata BSE Quality Index Fund aims to deliver a more stable investment experience for its investors.
“In the current market environment, a quality-focused portfolio plays a crucial role in seeking to provide long-term growth backed by strong and consistent fundamentals,” added Vardarajan.
Who should invest?
The investors who are looking for long-term capital appreciation. The returns that correspond to the securities as represented by the BSE Quality Total Return Index, are subject to tracking error.
Tata Asset Management was started in 1994 and is the investment manager for Tata Mutual Fund. It is one of the oldest mutual funds in India with a unique folio base of over 56 lakhs (latest available as on 31st January 2025).
