As India’s pride and GDP soar, so does our love for exploring the beauty of our own country. Indians are increasingly traveling domestically, seeking new experiences and creating unforgettable memories with loved ones. Post-Covid, this trend has intensified, with people eager to get back on airplanes, attend music festivals, embark on pilgrimages, and book accommodations well in advance.
To harness the growth of the travel and tourism industry, we proudly present the Tata Nifty India Tourism Index Fund. This index is designed to capture the travel and tourism-related segments such as Hotels & Resorts, Airlines, Airports & Airport Services, Restaurants, and Tour & Travel-related services. Additionally, it encompasses companies involved in manufacturing trolley bags, suitcases, and luggage, capturing the full spectrum of the travel and tourism sector.
6 Reasons to Invest in Tata Nifty India Tourism Index Fund
- Surge in Travel Frequency: The number of people taking three trips a year increased by 25% in 2023 compared to 2019 (source: MakeMyTrip). Travel now includes short and long vacations, staycations, workcations, getaways, road trips, experience travel, and spiritual tourism. People want to have new experiences and feel new emotions.
- Exploring Uncharted Territories: More people are driving to getaway locations and adding unexplored destinations near metros to their itineraries. They are booking experiential stays in places like Jim Corbett, Munnar, and Mysore. Searches for spiritual destinations like Ayodhya, Ujjain, and Badrinath have surged by over 90% in the last two years. Cities like Lucknow, Indore, and Bhubaneswar saw the highest rise in searches last year (Source: MakeMyTrip).
- Growing Middle-Income Group: The middle-income group represents approximately 31% of India’s population and is expected to reach approximately 47% by 2031, driving growth in domestic appetite for travel and tourism (Source: PRICE). Increased domestic flight demand is now seen coming from Tier II and Tier III cities, with hotel chains expanding to these regions.
- Government’s Spending on Infrastructure: Various government schemes such as launching new air routes, developing tourist destinations, and investing in airport infrastructure and semi-high-speed trains are boosting tourism.
- Expansion of Airline Fleets: The development of new airports and expansion of airline fleets have made air travel more affordable. Coupled with increased disposable incomes, this has led to a surge in air travel passengers.
- Evolving Food Industry Trends: As more women join the workforce and urbanization increases, there’s growth in Quick Service Restaurants (QSRs), food processing companies, and cloud kitchens. Urban consumers are eating out more, not just to dine but also to socialize and experiment with various cuisines, leading to a rise in dining out and ordering in behaviours.
Why Choose Tata Nifty India Tourism Index Fund?
The Tata Nifty India Tourism Index Fund is well-positioned to benefit from these trends, offering investors an opportunity to capitalize on the robust growth of India’s tourism industry. This comprehensive index captures the full spectrum of the travel and tourism segment, making it a smart investment choice for those looking to tap into this booming market.
Why Choose an Index Fund?
Index funds offer several advantages:
- Simple and Cost-Effective: They provide a hassle-free and cost-effective way to invest in a specific segment.
- Transparency: Fund holdings are based on a well-defined index, ensuring clear visibility.
- Lower Costs: Typically, index funds have lower expense ratios as they are passively managed.
Who Should Invest?
This fund is ideal for:
- Long-Term Growth Seekers: Investors with a long-term investment horizon who believe in the growth potential of the Indian tourism sector.
- Risk-Tolerant Investors: Suitable for those with a high-risk appetite, willing to invest in sector-specific funds.
- Focused Investors: Individuals seeking focused exposure to the tourism segment without broad diversification.
So, aim to fly high with India’s tourism. Jet. Set. Go with Tata Nifty India Tourism Index Fund
Scheme Details
| Scheme Name | Tata Nifty India Tourism Index Fund |
| Investment Objective | The investment objective of the scheme is to provide returns, before expenses, that commensurate with the performance of Nifty India Tourism 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 Nifty India Tourism Index (TRI). |
New Fund Offer price: This is the price per unit that the investors have to pay to invest during the NFO | The units being offered will have a face value of Rs. 10 /- per unit. |
| Fund Manager | Kapil Menon |
| Benchmark | Nifty India Tourism Index (TRI) |
| Min. Investment amount | Rs. 5,000/- And in Multiple of Re.1/- Thereafter |
| Load Structure: | |
| Entry Load | Not Applicable (Pursuant to provision no. 10.4.1.a of SEBI Master Circular on Mutual Fund dated May 19, 2023, no entry load will be charged by the Scheme to the investor) |
| Exit Load | 0.25% of the applicable NAV, if redeemed on or before 15 days from the date of allotment. |
This product is suitable for investors who are seeking*:
| Scheme Risk-O-Meter | Benchmark Risk-O-Meter | |
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| *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 or model portfolio 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 May 19, 2023, on Product labelling in mutual fund schemes on ongoing basis.
*Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
