In the world of investments, asset allocation plays a crucial role in managing risk and pursuing growth. Indian business groups like Tata, Aditya Birla, Reliance, and Mahindra have made significant contributions to this landscape. Understanding why India’s business groups might be worth considering can provide valuable insights for both seasoned investors and newcomers.
Diversification and Stability
The cornerstone of successful investing is diversification, which can help manage the effects of market downturns by spreading investments across various sectors. Tata BSE Select Business Groups Index Fund reflects this principle by investing in companies from 7 largest Indian business groups, including Tata, Reliance, L&T, Mahindra, Aditya Birla, and Jindal.
These corporate groups operate across diverse industries such as renewable energy, construction, technology, consumer goods, and oil and gas. This diversification has the potential to balance overall performance when certain sectors face challenges.
For example, the Tata Group is engaged in IT services and steel fabrication, while the Reliance Group focuses on retail and telecom & digital services. The fund seeks to offer a balanced risk-return profile by aiming to mitigate market-specific risks.
Resilience During Market Cycles
Long-term viability is one of the defining traits of India’s business groups. Despite navigating various economic cycles, they have demonstrated resilience by adapting and maintaining their position. The concept of "anti-fragility" is relevant here, describing their ability to emerge stronger from crises. These organisations achieve this through diversified investments, collaborations across multiple industries, agility, and robust financial foundations.
For instance, Indian business groups such as Reliance and Mahindra have consistently evolved by investing in emerging sectors like 5G, electric vehicles, and artificial intelligence. Their adaptability may make them suitable for investors seeking alignment with long-term growth trends.
Participate in Future Growth Trends
Investing in business groups is not just about stability; it also involves aligning with the economy's future growth. These business groups are amongst the forefront of industries set for expansion. From green energy and electric vehicles to artificial intelligence and advanced infrastructure, these organisations play a vital role in shaping India’s economic progress.
As India works toward its goal of becoming a $5 trillion economy*, these corporations may stand to benefit from the country’s emphasis on innovation and development. Investing in them provides exposure to transformative technologies and projects with the potential to shape the coming decades. (*Source: Press Information Bureau)
Economic Impact
The significance of India’s business groups extends beyond their financial performance. These organisations are an integral part of India's economic framework. Investing in India’s business groups can align with the nation's growth trajectory, as they contribute substantially to GDP, employment, and infrastructure development. Groups like Tata and Reliance generate considerable revenue, support millions of jobs, and lead critical national projects.
For investors, this could represent an opportunity to participate in enterprises that hold substantial influence in the economy. Their contributions to sectors such as transportation, power, and telecommunications may highlight their importance to the country’s progress, reinforcing their potential as investment avenues.
Access India’s Largest Business Groups Via Index Funds
You can now access these large corporations more easily through a single fund, the Tata BSE Select Business Groups Index Fund. This fund includes leading firms from India's largest corporate groups, offering a diverse and carefully researched portfolio. It could provide exposure to blue-chip corporations operating in sectors such as construction, information technology, energy, and consumer products.
Investing in India’s business groups may help you achieve a balance between stability and growth. Their demonstrated stability, broad sectoral presence, and active involvement in forward-thinking businesses make them a potential fit for portfolios seeking long-term capital appreciation. As India continues to develop on the global economic stage, investing in its premier business groups may align your portfolio with that growth.
Scheme Details
scheme-risk-o-meter
| Scheme Name | Tata BSE Select Business Groups Index Fund |
| Investment Objective | The investment objective of the scheme is to provide returns, before expenses, that commensurate with the performance of BSE Select Business Groups Index (TRI), subject to tracking error. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. The scheme does not assure or guarantee any returns. |
| Type of Scheme | An open-ended scheme replicating / tracking BSE Select Business Groups Index (TRI). |
| Benchmark | BSE Select Business Groups Index (TRI). |
| Min. Investment amount | Rs 5,000/- and in multiple of Re.1/- thereafter. |
This product is suitable for investors who are seeking*:
|  |  |
| *Investors should consult their financial advisors if in doubt about whether the product is suitable for them. | ||
(The above product labelling assigned during NFO is based on internal assessment of the scheme characteristics and the same may vary post NFO when the actual investments are made. The same shall be updated as per provision no. 17.4.1.i of SEBI Master Circular on Mutual Fund dated June 27, 2024, on Product labelling in mutual fund schemes on ongoing basis.)
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
