Tata AIA Sector Leaders Index Fund

1. What is the Tata AIA Sector Leaders Index Fund?

The Tata AIA Sector Leaders Index fund replicates the BSE India Sector Leaders Customised Index. It invests in the top companies from each major sector in the BSE 500 universe, offering diversified exposure to India’s sector champions.

2. What is the investment objective of Tata AIA Sector Leaders Index Fund?

The primary investment objective of the Fund is to generate capital appreciation in the long term by investing in a portfolio of stocks that are aligned to Sector Leaders Index, customised as per IRDAI regulatory requirements.

The objective of the fund is to invest in companies with similar weights as in the index and generate returns as closely as possible, subject to tracking error. The fund will invest 80%-100% in Equity and Equity related instruments and 0%-20% in Cash and Money Market Securities.

3. What is Tata AIA Sector Leaders Index Fund's benchmark?

The benchmark of this fund is BSE India Sector Leaders Customised Index - 100%. This customised index is aligned with IRDAI regulatory requirements and represents the top three companies (by market capitalization) from each sector within the BSE 500 universe, weighted by free-float market capitalization.

4. What is the expense ratio (FMC) of Tata AIA Sector Leaders Index Fund?

The expense ratio of Tata AIA Sector Leaders Index Fund is 1.35% per annum.

5. What is the proportion of investment between equity and debt components?

For long-term wealth accumulation, the fund's 80–100% equity allocation ensures maximum participation in high-growth momentum stocks. While keeping up to 20% of cash on hand guarantees liquidity and portfolio stability during market turbulence, excluding debt prevents returns from being diluted.

6. Who is the fund manager of Tata AIA Sector Leaders Index Fund?

The fund will be managed by Nimesh Mistry.

7. What is the risk profile of this fund?

This fund is categorized as High Risk, since it invests primarily in equities across multiple sectors.

8. How does the Tata AIA Sector Leaders Index select its top 50 companies?

The index systematically selects the top three companies by market capitalization from each sector in the BSE 500 universe. Constituents are weighted by free-float market capitalization, with a maximum weight of 5% and a minimum of 1% per stock.

9. How can I track the performance of my Sector Leaders Index Fund?

You can track the performance of your investment through your Tata AIA customer portal account. We provide regular updates on your fund’s performance.

10. Is Tata AIA Sector Leaders Index Fund good?

Yes, the Tata AIA Sector Leaders Index Fund can be a good option for investors who want diversified exposure to India’s top companies across all major sectors. The fund is designed for investors seeking to meet their financial goals such as generating second income, securing children’s education, or planning for early retirement, with the potential to benefit from India’s strong economic growth over the next few decades.