Tata Nifty500 Multicap India Manufacturing 50:30:20 Index Fund(IDCW)
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Business Overview
The Tata Nifty500 Multicap India Manufacturing 50:30:20 Index Fund (IDCW) is designed for investors seeking diversified exposure to India's manufacturing sector. This fund allocates investments across large, mid, and small-cap stocks, providing a balanced approach to capital growth. It is ideal for those looking to capitalize on India's economic growth and manufacturing potential. With a focus on long-term wealth creation, this fund aims to deliver consistent returns while managing risk effectively.
- Diversified exposure to the manufacturing sector
- Invests in large, mid, and small-cap stocks
- Ideal for long-term wealth creation
- Focus on capitalizing on India's economic growth
- Managed by experienced professionals
- Transparent investment strategy
Investment Thesis
Tata Nifty500 Multicap India Manufacturing 50:30:20 Index Fund stands out due to its strong promoter credibility and robust digital services growth potential. With attractive valuations compared to peers, it offers a compelling investment opportunity for retail investors looking to capitalize on India's manufacturing sector growth.
- Backed by the reputable Tata Group, ensuring strong governance and stability.
- Significant growth potential in digital services, aligning with India's tech evolution.
- Valuation metrics are favorable compared to industry peers, enhancing investment appeal.
- Diversified exposure across multiple sectors, reducing risk while maximizing returns.
- Designed for long-term capital appreciation, making it suitable for retail investors.
Opportunity vs Risk
- Diversified exposure to Indian manufacturing
- Potential for long-term capital growth
- Rising demand in domestic markets
- Government initiatives boosting manufacturing sector
- Market volatility affecting returns
- Economic slowdown impacts growth
- Regulatory changes in manufacturing
- Competition from global players
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10BusinessHighThe manufacturing sector is poised for growth with government initiatives and increasing demand.
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10GrowthHighConsistent revenue growth observed over the past few years, though profit margins are fluctuating.
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10ProfitabilityHighROE and ROCE are decent, but cash flow is inconsistent compared to net profit.
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10ValuationHighValuation metrics like P/E and P/B are in line with industry averages.
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8BalanceHighDebt levels are manageable with adequate liquidity.
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7GovernanceHighPromoter holding is strong, but some concerns regarding disclosures.
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5DriversGoodGrowth drivers are present, but execution risks remain.
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3TechnicalsLowMarket sentiment is neutral with low liquidity.