Tourism habits are fast changing in India. Online travel bookings, faster journey with more operators in the market, a rise in destination options, travel reviews facilitating providing improved customer experiences. A growing middle class, rising consumption patterns, marked improvements in infrastructure, and advancements in digital technology are rapidly changing the tourism landscape.
New airports, new highways, a revolution in the food and food distribution industry, schemes such as UDAAN, new trains such as Vande Bharat, increased passenger vehicle sales are all contributing to the rise of the travel and tourism industry.
Amidst this change comes the country’s first tourism index fund from the house of the Tatas.
Tata Nifty India Tourism Index Fund Index details
The index has been designed to reflect the performance of the stocks related to the travel and tourism industry. According to the offer document, the weight of the stock in this index stands thus as on June 21, 2024 – hotels and resorts 32%, airlines and restaurants both 19%, tour and travel related services 16%, airport and airport services 10% and luggage 3%.
The risk-o-meter of the scheme is very high. Tata Mutual Fund says the scheme is suitable for investors who are seeking long-term capital appreciation.
The NFO opens on July 8, 2024.
The minimum subscription amount is Rs 5,000. There is no entry load. However, there will be a 0.25% exit load in this scheme.
The fund will be managed by Kapil Menon.
Value from the sector
“The specific index is a new construct; NSE has very recently added this to its growing list of sectoral benchmarks. The Tata fund too is a first proposal of sorts,” says investment strategist and director Wishlist Capital Nilanjan Dey.
He sees considerable value emerging from this sector. “The number of listed stocks in travel and tourism is set to increase in the days to come as specific opportunities will arise in niche segments such as adventure and medical tourism. Companies like IRCTC and BLS will keep growing in stature too because of their unique revenue models,” says Dey.
However, before investing every individual should consult a qualified investment advisor to find out whether the fund and its objectives are appropriate for him/her and his/her goals.
Tata Nifty India Tourism Index Fund details: This is the first tourism index fund in India. It’s an open-ended scheme and the NFO opens on July 8, 2024. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
