Tata AMC Introduces Multicap Index Fund to Capture India’s Evolving Consumption Theme

Tata Asset Management has launched the Tata BSE Multicap Consumption 50:30:20 Index Fund, a passive fund designed to provide investors with exposure to India’s evolving consumption landscape across market capitalisations.

The fund tracks the BSE Multicap Consumption 50:30:20 Index (TRI) and follows a rule-based allocation of 50% large caps, 30% mid caps and 20% small caps, aiming to balance stability with growth potential.

Commenting on the launch, Anand Vardarajan, Chief Business Officer, Tata Asset Management, said,
“Consumption is a long-term structural theme for India. However, the nature of consumption is shifting from basic needs to lifestyle and aspirational spending. Where the rich spend today, the middle class will spend there tomorrow. While Large Caps offer stability and brand leadership, true wealth creation potential often lies in mid- and small-caps which represent emerging consumption themes like quick commerce, travel, and digital entertainment. The 50:30:20 construct – 50% large-caps, 30% mid-caps, 20% small-caps – aims to offer investors a transparent, rule-based way to participate in the entire consumption ecosystem without the concentration risk often seen in traditional sector funds.”