Mutual Fund Investment 101

So, as an investor, you must note that while hybrid funds follow set ratios, balanced advantage funds change their allocations dynamically, and multi-asset allocation funds diversify even beyond the common buckets of equity and debt. 

But which financial product may suit you? Read this article to first understand the meaning of all these schemes and then see how they differ from each other. Next, you will learn how to choose the right hybrid fund, and lastly, explore the various mutual fund options offered by Tata Mutual Fund™.

What are Multi-Asset Allocation Funds?

Multi-asset allocation funds invest at least 10% each in three different asset classes, which could be:

• Equity

• Debt

• Commodities [say, metals (gold, silver), crude oil, wheat]

This mix allows the fund not to rely on just one source of return. Also, it may balance risk better, as when one asset type performs poorly, another may set off the losses.

What are Balanced Advantage Funds (BAF)?

A BAF is a mutual fund scheme that dynamically invests in stocks (equity) and bonds (debt), changing its mix or allocation percentage as per the prevailing market conditions. Let’s see how it happens:

This constant adjustment is called “dynamic allocation” and allows the BAF to balance growth and safety. Additionally, the fund may also use arbitrage (buying and selling similar assets to capture minor price differences) strategies to add further stability. 

What are Hybrid Mutual Funds?

Hybrid funds combine equity (stocks) and debt (bonds) in a single portfolio to potentially provide investors with:

• Capital appreciation from equities and

• Stability + regular income from debt

This allocation strategy may reduce volatility and spread risk across various sectors. Usually, hybrid fund managers actively rebalance the portfolio based on market conditions and the fund’s objective. 

Now, let’s check out the various types of hybrid funds differentiated based on their mix of equity and debt:

Multi-Asset vs. Hybrid vs. Balanced Advantage Fund: How do they differ?

Multi-Asset, Hybrid, and BAFs all mix different types of investments, but differ as to how they diversify and manage risk. If we talk about the primary difference:

• Hybrid funds combine equity + debt in fixed or flexible proportions.

• BAFs are dynamic and actively change the mix between equity and debt based on market conditions.

• Multi-Asset Funds go a step further by including at least three asset classes (like equity, debt, and gold).

For more clarity, check out the comparison table below:

How to choose the right Hybrid Fund in 2025?

As a mutual fund investor, the right hybrid scheme depends on your risk tolerance, investment horizon, and financial goals. Let’s see how you can make a professional selection:

1. Assess Your Comfort with Risk

   If you prefer relatively stable investments and wish to avoid large market swings, a conservative hybrid fund may be suitable since it invests mostly in debt. 

   However, if you’re comfortable with higher volatility for long-term gains, a balanced or an aggressive hybrid fund may fit better.
    

2. Consider Your Flexibility Needs

   If you want a fund that automatically adjusts between equity and debt based on market conditions, a balanced advantage fund may be ideal. It could take care of asset allocation for you. There is no need for manual switching.
    

3. Assess Your Diversification Requirement

   If you want exposure beyond to multiple asset categories, a multi-asset allocation fund may suit you. It can offer broader diversification within one scheme and reduce your portfolio risk.
    

4. Match It To Your Time Horizon

   For short-term goals, you may choose conservative options. But for long-term goals, you can prefer aggressive or BAFs as they might offer better growth potential.

    

Some Tata Mutual Fund ™ Schemes You May Consider in 2025

If you are searching for hybrid schemes, Tata Mutual Fund™ offers a range of options across categories, such as:

• Multi-asset allocation fund

• Balanced advantage fund

• Aggressive hybrid funds

Each scheme is available in both Growth and IDCW (Income Distribution cum Capital Withdrawal) options, with regular and direct plans to choose from. You can start investing through a Systematic Investment Plan (SIP) or make a one-time lump-sum investment. Let’s understand them in detail:

Tata Multi Asset Allocation Fund

(An open-ended scheme investing in equity, debt, and exchange-traded commodity derivatives)

This scheme aims to offer long-term capital appreciation by investing in different types of assets. The fund’s performance is compared against a benchmark index made up of: 

• 65% BSE 200 (large Indian companies representing equity)

• 15% CRISIL Short Term Bond Fund Index (debt instruments)

• and 20% iCOMDEX Composite Index (commodities)

This benchmark is used to track how the multi-asset allocation fund performs across equity, debt, and commodity markets. However, the fund does not guarantee any returns or that its investment objectives will always be met.
 

Tata Balanced Advantage Fund

(An open-ended dynamic asset allocation fund)

This mutual fund aims to offer investors both capital appreciation and income distribution by using:

• Equity derivatives strategies

• Arbitrage opportunities

• Pure equity investments

The performance of this balanced advantage fund (BAF) is measured against the CRISIL Hybrid 50+50 – Moderate Index(TRI), which tracks a balanced mix of 50% equity and 50% debt. However, the fund does not guarantee any returns.
 

Tata Aggressive Hybrid Fund

(An open-ended hybrid scheme investing predominantly in equity and equity-related instruments)

The investment objective of this aggressive hybrid fund is to provide:

• Income Distribution cum capital withdrawal 
  and/or

• Capital appreciation over the medium to long term

The performance of this scheme may be measured against the CRISIL Hybrid 35+65 Aggressive Index. For those unaware, the “35+65” refers to the mix of assets in the index, which is around:

• 35% in debt instruments (like bonds) 
  and

• 65% in equities (stocks).

The term “aggressive” indicates that the index invests more heavily in equities and may aim for higher long-term growth. However, this mutual fund scheme does not assure or guarantee any returns.
 

Conclusion

So now you know the meaning of different hybrid schemes:

• A hybrid fund combines equity + debt to balance risk and return. 

• A BAF adjusts between equity and debt depending on market conditions

• A multi-asset fund invests in at least three asset classes (say, equity, debt, and gold) for wider diversification.

The right selection depends on your risk appetite and investment objectives. If you want to explore such options, Tata Mutual Fund™ offers several hybrid schemes across these categories. 

The Tata Mid Cap Fund is an equity mutual fund that invests predominantly in equity & equity related instruments of growth oriented mid cap companies . Its investors may benefit from capital appreciation over the long term. 

The fund’s performance is compared against the Nifty Midcap 150 TRI, which represents 150 companies ranked from 101st – 250th based on market capitalisation. 

Tata Nifty Midcap 150 Index Fund

An open-ended fund replicating/tracking the Nifty Midcap 150 Index (TRI)

The Tata Nifty Midcap 150 Index Fund is a passive mutual fund that track & replicate the performance of the Nifty Midcap 150 Index (TRI), subject to tracking error. This index represents 150 companies (companies ranked 101st to 250th) based on market capitalization.

The fund does not try to beat the market; instead, it invests in the same stocks and in the similar proportion as the index. This scheme may suit investors who want exposure to mid-cap companies through a low-cost passive scheme + diversified route.

Tata Small Cap Fund

An open-ended equity scheme predominantly investing in small-cap stocks.

The Tata Small Cap Fund is an equity scheme that primarily invests in small-cap companies. For those unaware, these are classified as small-cap by the Securities and Exchange Board of India (SEBI) or the Association of Mutual Funds in India (AMFI). At present, the small-cap category represents the 251st company onwards in terms of full market capitalisation.

This financial product may allow investors to enjoy long-term capital appreciation by identifying early-stage businesses that might grow over time. Its performance is compared against the Nifty Smallcap 250 Index, which tracks 250 small-cap stocks across different sectors. 

Tata India Consumer Fund

An open-ended equity scheme investing in the Consumption-Oriented Sector.

The Tata India Consumer Fund is an equity scheme that invests at least 80% of its funds in equity & equity related instruments of the companies that are a part of India’s “consumption-oriented sectors”. 

The fund’s performance is measured against the Nifty India Consumption TRI. 

It covers a mix of industries that depend on local demand, such as but not limited to:

• FMCG (consumer goods)
• Healthcare
• Automobiles
• Telecom
• Pharmaceuticals
• Hotels
• Media

Together, these companies represent a majority of India’s domestic consumption. So, when people in India buy more goods and services (expansionary phases), the companies in this index may perform better.

Tata Digital India Fund

An open-ended equity scheme investing in the Information Technology Sector.

The Tata Digital India Fund is a sectoral equity scheme that invests at least 80% of its net assets in equity/ equity related instruments of the companies in Information Technology Sector. The fund’s performance is compared with the Nifty IT Index. This fund allow investors to participate in the potential growth of India’s technology industry.

Tata Nifty Midcap 150 Momentum 50 Index

An open-ended scheme replicating/tracking NIFTY Midcap 150 Momentum 50 Index.

The Tata Nifty Midcap 150 Momentum 50 Index Fund is a passive scheme that mirror the performance of Nifty Midcap 150 Momentum 50 Index. This index aims to track the performance of top 50 mid-sized companies selected from the Nifty Midcap 150 based on their normalised momentum score. 

In this index, each company is given a “Normalised Momentum Score,” which is calculated using its 6-month and 12-month price returns. These returns represent how much the stock price has increased during these periods (adjusted for volatility).

After calculating these scores, the index selects the top 50 companies based on high normalised momentum score. . Each stock’s weight in the index depends on both its momentum score and its free-float market capitalisation.

Tata Nifty Capital Markets Index Fund

An open-ended scheme replicating/tracking Nifty Capital Markets Index (TRI).

The Tata Nifty Capital Markets Index Fund is another passive scheme that tracks/ replicate the Nifty Capital Markets Index (TRI), which represents companies in India’s capital markets sector. 

These companies are drawn from the broader Nifty 500 Index. Now, to select the companies, only businesses that fit the capital market theme are considered. From these, the largest 20 stocks are chosen based on their 6-month average free-float market capitalisation.

Conclusion

So now you know that diversification is a must-have when it comes to investing! By spreading investments across different types of funds and sectors, you may reduce overall portfolio’s volatility.

If you want to build a multi-pronged strategy, you may consider these three layers of financial products: 

• Market capitalisation funds (large, mid, and small caps) for growth potential

• Sectoral or thematic funds with an aim to capture potential opportunities in specific industries.

• Index funds to gain low-cost + broad market exposure. 

These layers can be included in your portfolio through systematic investment plans (SIPs) or lump-sum purchases. For this purpose, Tata Mutual Fund™ offers multiple options that support diversification and offer sectoral exposure. Some schemes you may consider are:

• Tata Midcap Fund

• Tata Nifty Midcap 150 Index Fund

• Tata Small Cap Fund

• Tata India Consumer Fund

• Tata Digital India Fund

• Tata Nifty Midcap 150 Momentum 50 Index Fund

• Tata Nifty Capital Markets Index Fund

   

Gold mutual funds are open-ended fund of fund schemes that invest primarily in gold exchange-traded funds (ETFs). Instead of holding physical gold, these funds allow you to gain exposure to the price of gold through financial investments.

The underlying gold ETFs in such funds typically hold gold of high purity, usually 99.5%, stored safely with authorised custodians. This means the value of your investment moves broadly in line with domestic gold prices, subject to market movements.

How do Gold Mutual Funds work?

Here’s how gold mutual funds work:

• Pooling of Funds: The fund manager collects money from many investors and combines it into a single investment pool.

• Investment in Gold-linked Instruments: The pooled amount is used to invest in gold exchange-traded funds (ETFs).

• Value Movement: The value of the fund changes in line with gold prices. For instance, if the gold prices rise, the value of the fund’s holdings also generally increases. When prices fall, the value may decrease.

• Unit Transactions: You can buy and sell units of the gold mutual fund through the fund house, much like purchasing or redeeming any other mutual fund scheme. The price of each unit depends on the current value of the underlying gold investments.

• Management Fees: For managing the fund and handling transactions, the fund house charges an expense ratio, which covers administrative and operational costs.

   

Key Features of Gold Mutual Funds

Gold mutual funds have the following chief characteristics:

• Accessibility: You can invest without needing a demat or trading account.

• Convenience: There is no need to store or insure physical gold.

• Liquidity: You can redeem units directly with the fund house whenever required.

• Systematic Investment: You can start small with regular monthly contributions through SIPs.

• Transparency: The NAV is published daily, reflecting the current market value of gold.

• Diversification: Generally, Gold behaves differently from equities and bonds, helping you balance risk.

• Professional Oversight: Experienced fund managers handle the investment decisions.

• Regulated Framework: The scheme operates under SEBI and AMFI regulations for investor protection.

   

Role of Gold Mutual Funds in Tackling Market Volatility

Market volatility can unsettle even the most seasoned investors. When equity markets experience large swings, certain assets may help cushion the impact on your portfolio. Gold has historically played such a role because its price movements are often different from those of equities or bonds.

A gold mutual fund can help you:

1. Diversify your portfolio: Gold typically has a low correlation with other asset classes, which helps reduce overall risk.
2. Manage inflation risk: Gold has historically maintained its real value when inflation rises, helping preserve purchasing power.
3. Build stability: During times of economic or geopolitical uncertainty, gold has often acted as a balancing component within portfolios.

However, it is important to remember that gold prices can fluctuate in the short term. You should view your investment in gold mutual funds as a way to enhance portfolio balance, not as a guaranteed safe haven.

Pros and Cons of Investing in Gold Mutual Funds

But it is important to note that gold mutual funds are not designed to replace equities or debt instruments. They may be used as an additional layer of stability within a diversified investment strategy.

Difference Between Gold Mutual Funds and Gold ETFs

Although both aim to reflect gold’s market value, the way they operate differs.

If you prefer simplicity and the option to invest small amounts regularly, a gold mutual fund can be more convenient. If you already have a demat account and prefer real-time trading flexibility, a gold ETF may suit you better.

Exploring the Tata Gold ETF Fund of Fund

1. Scheme Type: An Open-ended fund of fund scheme investing in Tata Gold Exchange Traded Fund
    

2. Scheme Objective: The investment objective of the Scheme is to seek to provide returns that are in line with returns provided by Tata Gold Exchange Traded Fund. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved. 
    

3. Key Highlights:

   • At least 95% of the pooled corpus will be invested in Tata Gold ETF units.

   • It may hold up to 5% of its total assets in debt or money market securities to manage liquidity.
      

4. Riskometer: High Risk 
    

5. Disclaimer - Investors may note that they will be bearing the recurring expenses of the scheme (Tata Gold ETF Fund of Fund), in addition to the expenses of other schemes (Tata Gold Exchange Traded Fund) in which the Tata Gold ETF Fund of Funds makes investments.

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Know more about Tata Gold ETF Fund of Fund

Who Can Consider Investing in Gold Mutual Funds?

You might consider investing in gold mutual funds if you identify with any of the following:

• New investors – If you are just starting out, gold mutual funds offer a simple, accessible way to begin investing without needing a demat account.

• Diversification seekers – You can use gold exposure to try to balance your portfolio and potentially reduce the impact of equity or bond market volatility.

• Systematic investors – If you want to invest through regular SIPs to build discipline, and avoid timing the market.

• Investors with a high risk appetite – Gold FoFs have a high risk exposure and may be suitable for investors with a high risk appetite. 

• Non-demat investors – If you don’t have a Demat account but wish to hold gold, you can consider gold mutual funds. 

• Investors looking to tackle volatility – If you want to hedge against uncertainty, gold has historically behaved as a relatively steady asset, helping preserve value when markets turn volatile.

   

Things to Keep in Mind Before Investing

Before you invest in gold mutual funds or gold ETFs, consider these key points to make informed decisions:

1. Assess your risk tolerance: Gold prices can fluctuate overtime. So, make sure you’re comfortable with short-term corrections and understand that returns are not guaranteed.

2. Check the expense ratio: Gold mutual funds are actively managed and therefore, charge an expense ratio. Remember to compare this expense ratio across gold mutual funds to avoid spending more over time in management fees.

3. Decide your investment tenure: As mentioned earlier, gold prices can fluctuate in the short-term. That’s why, historically, investments in gold have worked well over a medium- to long-term holding period within a balanced portfolio.

4. Understand taxation: Capital gains you make from gold mutual funds are subject to taxation based on their holding periods. For investments withdrawn after 12 months, LTCG tax of 12.5% is applicable. Short-term capital gains withdrawn with the first 12 months are taxed at your slab level.

5. Avoid overexposure: Overexposure to gold can impact the growth potential of your portfolio and compromise its risk balance.

6. Stay disciplined with SIPs: Regular investments in gold SIP plans help you build exposure steadily. Gold SIP plans can also help you manage market volatility through rupee cost averaging.  

Conclusion

Gold continues to hold its place as an important asset in uncertain times. Through gold mutual funds, you can access the benefits of gold investing without the challenges of buying and storing it physically. These funds combine professional management, transparency, and regulatory oversight, giving you a convenient way to include gold in your portfolio.

Funds such as the Tata Gold ETF Fund of Fund provide one such avenue to gain exposure within a well-defined mutual fund structure. By maintaining a balanced approach and aligning your gold allocation with your financial goals, you can use gold mutual funds as a tool to strengthen your overall investment strategy.

If you are planning to invest in innovation funds, it is important to keep the following factors in mind before committing money:
 

1. Review Past Results Carefully (Fund Performance)

By examining an innovation fund’s past performance, you can understand how it has handled different market conditions. Data from the Association of Mutual Funds in India (AMFI) shows how funds have performed historically. 

While past returns do not guarantee future results, consistent long-term performance may indicate:

• Disciplined fund management approach
• Effective risk handling during market volatility
• Strong investment strategy + stock selection
• Ability to deliver potential long-term returns
   

2. Understand the Costs Involved (Expense Ratio)

Innovation funds are usually “actively managed”. Their fund managers research and adjust portfolios regularly. This often leads to higher management fees, known as the expense ratio. 

As an investor, you may compare this cost with similar funds (peer comparison) and consider whether the potential returns justify the higher expenses.

3. Assess the Fund Manager’s Skill (Fund Manager Expertise)

Like with all the actively managed schemes, the success of an innovation fund also depends on the fund manager’s knowledge and decision-making ability. A skilled manager can

• Identify new trends early
• Better evaluate emerging companies
• Timely adjust the portfolio when market conditions change

On your part, you can review the manager’s experience + past track record to pick the right innovation mutual fund option. 
 

What is the Tata India Innovation Fund?

It is an open-ended equity scheme following the “innovation theme”.  The inception date for this scheme is 28 Nov 2024, and may provide investors with opportunities for long-term capital appreciation. It could invest in equity and equity-related instruments of companies that seek to benefit from the adoption of innovative strategies and themes. 

However, the fund does not guarantee returns or ensure that the stated goal will be fully achieved, as market performance can vary. Some key features of the Tata India Innovation Fund are:

1. Benchmark

The Tata India Innovation Fund is compared against the NIFTY 500 Total Return Index (TRI), which may give a broad view of the Indian stock market. It tracks the performance of the 500 largest companies in India based on market value (total free float). This index is calculated in real time and reviewed twice a year. Source: NiftyIndices.com

2. Exit Load

If you redeem or sell your investment within 30 days from the date of purchase, a fee of 0.50% of the redemption amount is charged. Whereas, if you withdraw after 30 days, there is no exit load. 

3. Risk Level

This scheme carries a “very high risk” level. As an investor, you may consider this fund if you can handle high volatility and have a long-term investment horizon.

Conclusion

So now you know that innovation funds are a type of thematic fund that focuses on innovative sectors such as artificial intelligence, biotechnology, renewable energy, and other emerging technologies. 

Such financial products may offer potential return when these themes perform strongly compared to general diversified funds. However, at the same time, investors may face higher losses if these innovative sectors underperform.

Thus, to pick the right innovation fund, you should:

• Assess your risk appetite

• Check the fund’s past performance

• Review the expense ratio and exit load

• Evaluate the fund manager’s expertise and experience

If you are looking for an option, you may consider the Tata India Innovation Fund, which allows you to invest either through a lump sum or a Systematic Investment Plan (SIP). You can invest in the scheme through both Direct and Regular plans. Both these plans offer Growth, IDCW (Income Distribution cum Capital Withdrawal) Payout and IDCW Re-investment options.

Disclaimers

• The views mentioned above are for information & educational purposes only and do not construe to be any investment, legal, or taxation advice. Investors must do their own research before investing. 

• The views expressed in this article are personal in nature and in is no way trying to predict the markets or to time them. Any action taken by you on the basis of the information contained herein is your responsibility alone, and Tata Asset Management Pvt. Ltd. will not be liable in any manner for the consequences of such action taken by you. 

• Please consult your Mutual Fund Distributor before investing. The views expressed in this article may not reflect in the scheme portfolios of Tata Mutual Fund. There are no guaranteed or assured returns under any of the schemes of Tata Mutual Fund.

However, your returns depend entirely on how the healthcare industry performs. Thus, thematic funds carry more risk when compared to large-cap or mid-cap funds, which invest in companies from various sectors (such as banking, IT, energy, healthcare, and consumer goods). 

Before committing your money, check out some key features of this financial product below:

5 Major Benefits of Pharma and Healthcare Funds

In India, the healthcare sector is growing. A study by IBEF.org (a trust established by the Ministry of Commerce) found that by the end of 2025, it is expected to reach about ₹54.7 lakh crore (US$638 billion) at an impressive CAGR of 17.5 to 22.5%. Additionally, the report states that:

• India is now spending more of its GDP on healthcare (from 3.3% in 2022 to a projected 5% by 2030)

• Private hospitals are also expanding, and in FY26, they plan to add 4,000 new beds by investing ₹11,500 crore (Source: IBEF).

As a healthcare mutual fund investor, you may benefit from this potential steady + long-term growth. Additionally, some other benefits of investing in pharma and healthcare funds are:

1. Stability in Tough Times

   Healthcare products and services are usually considered “evergreen”.  Medicines, hospitals, and diagnostics don’t lose demand even when the economy slows down. 

   Due to this constant need, healthcare mutual funds may remain more stable compared to funds investing in sectors that depend heavily on consumer spending or economic cycles.

    

2. Diversification Within Healthcare

   The healthcare industry includes many sub-sectors, such as:

   • Pharmaceuticals

   • Biotechnology

   • Hospitals

   • Diagnostics

   • Medical devices, and more

     Each sub-sector comes with its own opportunities and risks. By investing in a healthcare mutual fund, you may get exposure to all these segments rather than relying on a single company or niche. 

     This diversification reduces risk, as underperformance/ weakness in one area (for example, hospitals) can be balanced by strength in another (such as drug manufacturing or medical technology).

      

3. Managed by Experts

   A pharma and healthcare fund is run by experienced managers who study the sector closely. Before choosing where to invest, they may analyse:

   • Company performance

   • New technologies

   • Government policies

   • Global healthcare trends

     Post-investing, they also adjust holdings based on changing market conditions. For individual investors, doing this level of research and monitoring is usually considered tough.

      

4. Easy to Invest and Withdraw

   Healthcare mutual funds are simple to invest in! You can start with a one-time lump-sum amount or a systematic investment plan (SIP). These funds are also highly liquid, and investors can redeem their units at the prevailing Net Asset Value (NAV) whenever they need funds.

    

5. Potential for Strong Returns

   There are market phases when the healthcare sector performs better than the overall market. This usually happens due to:

   • Innovation

   • New drug launches

   • Rising healthcare spending

     During such phases, health sector mutual funds may potentially deliver higher returns than diversified funds. Since they are only exposed to a single sector, such schemes potentially benefit comparatively more from “sector upswings”.

     However, investors should remember that the same focus also means higher risk if the sector slows down. 

Healthcare Funds Offered by Tata Mutual Fund™ in 2025

If you are planning to invest in pharma mutual funds, Tata Mutual Fund™ provides two different options:

1. Tata Nifty MidSmall Healthcare Index Fund

   and

2. Tata India Pharma and Healthcare Fund (an equity fund)

Both schemes can be invested in through SIP or lump-sum modes and are available in Growth and IDCW (Income Distribution cum Capital Withdrawal) options. Investors can also choose between Regular and Direct plans based on their preference. 

For better understanding, let’s look at each of these thematic funds in detail:

Tata Nifty MidSmall Healthcare Index Fund

An open-ended scheme replicating/tracking Nifty MidSmall Healthcare Index (TRI)

It is a Nifty Pharma index fund, which mirrors the performance of the Nifty MidSmall Healthcare Index. For those unaware, the index includes up to 30 midcap and small-cap healthcare stocks, which are chosen based on their free-float market capitalisation. To maintain index balance, 

• No single stock can have more than 33% weight

  and

• The top three together cannot exceed 62%

Additionally, the index is updated twice a year and rebalanced every quarter to reflect current market conditions.

Tata India Pharma and Healthcare Fund

An open-ended equity scheme investing in the Pharma and Healthcare Services Sector

Tata India Pharma and Healthcare Fund is a thematic mutual fund that focuses on companies in India’s pharma and healthcare sectors. The fund invests at least 80% of its assets in equity and equity-related instruments of these companies to achieve long-term capital growth. However, returns as well as investment amount are not guaranteed / assured and may vary with market performance.

Additionally, this fund uses the Nifty Pharma Index as a reference, which tracks the performance of 20 major pharmaceutical companies listed on the National Stock Exchange (NSE).

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Tata India Pharma & Healthcare Fund: Understanding Healthcare and Pharma Investment Opportunities

How to Invest in Thematic Funds Offered by Tata Mutual Fund™?

Investing in thematic schemes offered by Tata Mutual Fund™ is simple and can be done completely online through the official mobile app or website. Let’s see how you can invest in three easy steps:

Step I: Download the App or Visit the Website

Get the Tata Mutual Fund™ app from your smartphone’s app store or visit the official Tata Mutual Fund website - www.tatamutualfund.com. Both platforms allow you to browse, compare, and invest in different funds.
 

Step II: Register or Log In

Create a new account by providing your details and completing the KYC process. If you are an existing investor, simply log in with your credentials.
 

Step III: Explore Thematic Funds and Invest

Browse through the available pharma mutual fund options and read about their:

• Investment objectives 

• Risk levels

• Exit load

• Benchmark, and other important details

Now, select the pharma and healthcare fund that suits your investment goals and risk appetite. Then, decide whether to invest a lump-sum amount or start an SIP. Once the transaction is complete, you will receive confirmation, and your investment will begin reflecting in your account.

Conclusion

So now you know that pharma sector / theme based mutual funds are schemes that invest at least 80% of their assets in equity and equity-related instruments of companies operating in the healthcare sector. These funds focus on a single investment theme and may deliver higher returns when the sector performs strongly. However, they also face larger losses during periods of underperformance, as they are not diversified across multiple sectors.

Some major benefits of investing in such thematic mutual funds may be:

• Exposure to a potentially high-growth industry

• Potential Stability during economic slowdowns

• Diversification within healthcare segments

• Professional management and research support

• Flexibility through SIP and lump-sum modes

If you are looking to invest in such financial products, Tata Mutual Fund offers multiple options, including an index funds and an actively managed equity funds tracking different sectors / theme.