The Tata BSE Select Business Groups Index Fund is a mutual fund designed for investors seeking exposure to leading Indian companies across various sectors. This fund tracks the BSE Select Business Groups Index, making it ideal for those looking for a diversified investment option that reflects the performance of established business groups in India. It matters because it offers a systematic way to invest in the Indian economy's growth while minimizing risks associated with individual stocks.

Diversified exposure to top Indian business groups
Ideal for long-term investors
Tracks a reputable index for reliable performance
Managed by Tata Asset Management, a trusted name
Suitable for both new and seasoned investors

Investment Thesis

Investing in the Tata BSE Select Business Groups Index Fund offers exposure to a strong promoter group known for credibility and stability. With the digital services sector poised for significant growth, this fund presents an attractive opportunity. Its valuation remains competitive compared to peers, making it a compelling choice for investors seeking long-term gains.

Tata's strong promoter group enhances credibility and trust.
Digital services sector is on a growth trajectory, driving potential returns.
Attractive valuation compared to similar funds in the market.
Diversified exposure to top Tata Group companies mitigates risk.
Long-term investment strategy aligns with India's economic growth outlook.

Opportunity vs Risk

Opportunities

Diversification in Indian equity market
Potential for long-term capital growth
Low expense ratio
Access to top-performing companies
Passive investment strategy benefits

Risks ⚠️

Market volatility impacts returns
Limited control over stock selection
Economic downturns affect performance
Regulatory changes may impact operations
Tracking error compared to index

Peer Perspective

Tata BSE Select Business Groups Index Fund trades at a slight premium to peers like Nifty 50 Index Fund and SBI Nifty Index Fund. A rerating could occur with improved margin stability and consistent growth in underlying sectors.

📊 Stock Investment Checklist (100 Points)

Tata BSE Select Business Groups Index Fund • Updated: 2025-09-29 16:25:06

10

Business
High

The fund is diversified across future-ready sectors, but lacks a clear competitive moat.
10

Growth
High

Consistent revenue growth observed, but profit growth has been volatile.
10

Profitability
High

ROE and ROCE are decent, but cash flow is inconsistent compared to net profit.
8

Valuation
High

Valuation metrics are slightly above peers, indicating potential overvaluation.
7

Balance
High

Debt levels are manageable, but liquidity could be improved.
6

Governance
Good

Promoter holding is stable, but there are concerns regarding transparency.
5

Drivers
Good

Growth drivers are present, but execution risks are significant.
5

Technicals
Good

Market sentiment is neutral with low liquidity.

Final Score & Verdict

Score 68 / 100 • Decent

The Tata BSE Select Business Groups Index Fund shows potential for moderate growth, but investors should be cautious of its valuation and execution risks.