The Tata BSE Quality Index Fund seeks to replicate the BSE Quality Index (TRI).

The fund aims to replicate the BSE Quality Index with the below methodology:

• The index aims to track the performance of the 30 highest quality companies in the BSE LargeMidCap, based on their quality scores.

      Stock Selection Criteria:

• Companies are evaluated in terms of 3 fundamental ratios namely Return to Equity Ratio, Accruals Ratio, Financial Leverage Ratio from the investment universe of BSE LargeMidCap.
• Companies satisfying the eligibility criteria are ranked based on their quality scores.
•  The top 24 companies (whether a current constituent or not) are selected for index inclusion. Existing constituents ranked 25-36 are selected in order of highest rank until the target constituent count of 30 is reached. If, after this step, the target constituent count is not achieved, then non-constituents are selected in order of highest rank until the target constituent count is reached.
•  Accruals Ratio is not considered for the calculation of Quality score for the companies belonging to Financial Services and Reality Sectors.

      Industry/Stock capping: 

• Stock cap: lower of 5% or 20 times its float-adjusted market capitalization.
• Industry cap: 30% maximum weight of any given common India Industry Classification Structure macro-economic indicator. Index constituents that are classified as part of the Diversified sector are treated as if they are part of the Industrials sector for index purposes.

      Index Rebalancing: 

• The index is rebalanced semi-annually in the months of March and September.

Risk Profile: Very High – (Risk-o-Meter file has been attached in the email).

0.25% of the applicable NAV, if redeemed on or before 15 days from the date of allotment.