Mutual Fund Investment 101

Due to such easier entry and diversification benefits, many investors nowadays are using mutual funds to build the core part of their portfolio. The Nifty 50 Index Fund and Bank Nifty index fund could be two primary index you can consider based on your risk appetite and investment goals.

Want to learn how? In this article, let’s first learn what the Nifty 50 Index Fund and Tata Nifty 50 index funds are. Next, we will study how you can build your core portfolio by investing in Nifty 50, and lastly, see what the Bank Nifty index fund is.

What is the Nifty 50 Index Fund?

A Nifty 50 Index Fund is a mutual fund that tracks and mirrors the performance of the Nifty 50 Index. For those unfamiliar, the Nifty 50 Index is a list of India’s 50 largest companies based on AMFI Market Capitalization.

When you invest in this fund, your money is spread across these 50 companies in the same proportion as they are in the index. It can give you instant diversification because you are investing in multiple top companies at once (without having to buy each stock individually). 

Furthermore, your investment value has a direct correlation with the performance of the Nifty 50 index. If the index rises, your investment value increases, and vice versa.

Quote

What is Tata Nifty 50 Index Fund? Features, Benefits & Who Should Invest?

What is the Tata Nifty 50 Index Fund?

The Tata Nifty 50 Index Fund, an open ended equity scheme offers Direct as well as Regular Plan having 2 options Growth, IDCW (Dividend) & 2 further sub options under IDCW option – IDCW Reinvestment & Payout. It invests at least 95% of the fund’s money in the same 50 companies that make up the Nifty 50 Index. 

The balance is usually kept in money market instruments for short-term needs like paying expenses or managing redemption / withdrawals.

The Tata Nifty 50 Index Fund is managed passively and can suit investors who want exposure to India’s top 50 companies. For your reference, below are some key features of the Tata Nifty 50 Index Fund:

Note: The information mentioned above is valid as of August 13, 2025. 

How to Build a Core Portfolio with the Mutual Fund Nifty 50?

You can build your core portfolio using the Tata Nifty 50 index fund. Direct plan has a lower expense ratio compared to a regular growth plan. This difference may seem small, but it can let you accumulate a potentially higher wealth over the long term due to compounding. 

Now, you can follow these simple steps to build your core portfolio via the Tata Nifty 50 index fund:
 

Step I: Decide Your Core Allocation

The Nifty 50 Index mutual fund can serve as the foundation of your equity portfolio. It covers the largest and most liquid companies in India (spread across multiple sectors). 

For long-term potential stability, you can build a portfolio following the 80-20 rule (also known as the Pareto principle):

Such an approach can make sure that your core is built on companies that have a proven track record. Also, these companies could be less volatile than smaller stocks.
 

Step II: Choose the Right Investment Mode

You can build your core portfolio via the Systematic Investment Plan (SIP) route. It is suitable for long-term investors because it spreads your purchases over time.

This can also reduce the risk of entering during a market peak. 

Furthermore, by investing monthly, you can average out the cost of units (rupee cost averaging). Later, when you have surplus funds during market downturns, you can even add lump sums.
 

Step III: Rebalance at Regular Intervals

As time progresses, market movements may cause your mutual fund Nifty 50 allocations to drift from your target (say, 90% of total investment). Now, to again match the core allocation percentage (as decided in Step I), you can rebalance e.g. once or twice a year. 

For example, 

• Let’s assume the fund grows beyond the target allocation.
• Now, you can shift the excess into other assets like debt or commodities.
• This lets you maintain your desired levels of diversification.

What is the Bank Nifty Index Fund?

Just like the Nifty 50 Index mutual fund invests in Nifty 50 companies, a Bank Nifty Index Fund invests only in the shares of major Indian banks (both public and private) that are tracked by the Nifty Bank Index. 

By investing in a fund that tracks / replicates Nifty Bank Index, you can specifically gain exposure to the potential growth of the banking sector (not the broader market). 

However, since it focuses only on one sector, it carries a higher risk compared to the Nifty 50 Index mutual fund, which is more diversified. If you consider the Bank Nifty Index Fund as the core investment option in your portfolio, your probable returns can fluctuate when there are:

• Changes in interest rates
• Amendments in banking regulations
• Major sector-wide issues

Conclusion

You can consider the Nifty 50 Index Mutual Fund to build the core of a long-term equity portfolio (after considering your risk appetite). This scheme can give you exposure to India’s largest 50 companies operating in multiple sectors. Also, it offers diversification and carries a lower expense ratio in the direct plans. 

Alternatively, you can consider the Bank Nifty Index Fund to build the core. Through it, you can indirectly invest in the top banks tracked by the Nifty Bank Index. However, by doing so, your portfolio can get exposed to the sector-specific risks.

For more information, you can visit www.tatamutualfund.com. The Investor Service Centre of Tata Asset Management Pvt. Ltd. is located at Mulla House, Ground Floor, 51, M.G. Road, Near Flora Fountain, Mumbai – 400 001, Maharashtra. The office hours are Monday to Friday, 9:00 AM to 5:30 PM, and Monday to Saturday, 9:00 AM to 5:30 PM. For assistance, you can also call (022) 6282 7777 or email service@tataamc.com 

A silver ETF is a financial product that allows you to invest in silver without purchasing or storing the metal yourself. Each unit/ share of a silver ETF represents a fixed amount of silver.

The silver ETF fund collects investors’ money and uses at least 95% of it to buy either real silver bars (99.9% pure or more) or silver-related instruments, such as futures and options. The balance 5% can be invested in debt and money market instruments, including units of mutual funds. 

This product mirrors the performance of domestic silver prices (does not outperform it). Thus, the value of your investment can fluctuate based on the market price of silver.

How Does a Silver ETF Work?

The fund’s job is to replicate the price movement of physical silver in India. Note that a Silver ETF fund does not beat silver prices or give higher returns than silver itself. Instead, the ETF tries to match silver’s price movements as closely as possible.
 

However, in reality, the ETF’s return may differ slightly from actual silver prices. This small gap (known as tracking error) is usually caused by expenses like:

• Management fees
• Storage
• Transaction cost

Now, let’s see how you can trade Silver ETF:

How is Silver ETF Different from Physical Silver?

As an investor, you can own silver in two main ways:

• By buying physical silver (bars, coins, jewellery) 

or

• By investing in silver ETFs (also known as silver mutual funds)

Both ways give you exposure to silver prices. However, they differ in storage, liquidity, and how ownership works. Let’s understand in detail how silver ETFs differ from physical silver:

When to Choose Which?

You can choose silver ETFs if you want more liquidity and small- investment size. Also, silver mutual funds can be a better choice in case you want freedom from purity and storage concerns.

Alternatively, you can choose physical silver if you prefer:

• Direct ownership
• Zero counterparty risk
• Gifting or cultural uses

Disclaimer: Mutual fund investments are subject to market risks. Read the offer documents carefully before investing

Tata Silver Exchange Traded Fund

In 2025, if you want to gain exposure to silver prices, you can consider investing in these silver ETFs (after considering your risk appetite):

1. Tata Silver ETF 

   An Open-Ended Exchange Traded Fund replicating / tracking domestic price of Silver

   Exit Load	Benchmark	Risk Level
   NIL	Domestic Price of Silver	Very High Risk

   Note: The above information is valid as of August 13, 2025.

   Tata Silver ETF is an open-ended scheme that tracks the silver prices in India. The value of this ETF changes in line with domestic silver prices (though tracking errors can occur due to costs and other factors). 

   Your probable returns come from an increase in the unit’s value over time. 

   

2. Tata Silver ETF Fund of Fund (FoF)

   An Open-ended fund of fund scheme investing in Tata Silver Exchange Traded Fund

   Exit Load	Benchmark	Risk Level
   0.50%	Domestic Price of Silver	Very high risk

   Note: The above information is valid as of August 13, 2025.

   Tata Silver ETF Fund of Fund is an open-ended mutual fund scheme that invests its money in the Tata Silver ETF rather than directly in silver. 

   As an investor, you can potentially benefit when you redeem units at a higher NAV than their purchase price.

   The minimum monthly SIP amount you can start from is ₹100 or ₹5000 for a lump sum. 

   Disclaimer: Investors are requested to note that they will be bearing the recurring expenses of the fund of funds scheme, in addition  to  the expenses  of  underlying scheme  in  which the  fund  of funds scheme makes investments.

   

3 Things to Consider Before Investing in Silver Mutual Funds

Through silver ETFs, you can gain exposure to domestic silver prices without physically holding the metal. However, this financial product comes with certain specific factors that can affect your potential returns. 

Their knowledge can help you choose the right silver mutual fund schemes and set realistic expectations for them. Below are three major things you must know:

1. Risk Appetite

Silver prices are influenced by global demand/supply and industrial usage. Also, silver is more volatile than gold, and its prices can fluctuate sharply in the short term. 

Thus, as an investor, you can assess your risk tolerance and proceed when you are comfortable with this level of price fluctuation.
 

2. Expense Ratio

The expense ratio is the annual fee the silver ETF fund charges to manage your investment. A higher expense ratio reduces your net returns over time. 

Hence, before committing funds, you can compare this cost across different silver ETFs. By choosing a fund with a lower expense ratio, you can potentially increase your earnings in the long term due to the compounding effect.
 

3. Tracking Error

Tracking error is a measure of the difference in returns from the Scheme and the returns from the underlying benchmark.

A silver mutual fund with a lower tracking error more accurately reflects silver’s performance. It is generally considered preferable for investors.

Conclusion

In 2025, you, as an investor, can choose between silver ETFs and physical silver based on your investment goals and risk appetite. With silver ETFs, you can enjoy:

• Ease of buying and selling
• No storage hassles
• SIP options for small-ticket investments only under FOF

However, they come with tracking errors and counterparty risks. On the other hand, physical silver gives you direct ownership and zero counterparty risk. But it requires safe storage and may be harder to sell in the open market. For more information, you can visit www.tatamutualfund.com.

The Investor Service Centre of Tata Asset Management Pvt. Ltd. is located at Mulla House, Ground Floor, 51, M.G. Road, Near Flora Fountain, Mumbai – 400 001, Maharashtra. The office hours are: 

• Monday to Friday, 9:00 AM to 5:30 PM and
• Monday to Saturday, 9:00 AM to 5:30 PM

For assistance, you can also call (022) 6282 7777 or email service@tataamc.com

So, want to learn how you can diversify your mutual fund portfolio? In this article, you will learn how to diversify a mutual fund portfolio via asset classes, market capitalisations, and industries. Also, you will see some mutual fund schemes you can consider for diversification in 2025.  

How to Diversify a Mutual Fund SIP Portfolio in 2025?

Diversification is more than merely collecting a variety of assets! While spreading money, you may pick instruments that balance growth potential with your risk appetite. The right mix for you can depend on these three factors:

Once you have defined your financial goals, investment horizon, and risk tolerance, you can diversify your mutual fund portfolio in the following way:

1. Diversification by Asset Class

• Equity Funds:
  • For long-term potential growth, you can allocate a significant portion to equity mutual funds. 
  • They offer potentially higher returns over time but come with more volatility.
     
• Debt Funds:
  • You can include these for potential stability and to cushion your portfolio during market downturns.
     
• Commodity Mutual Funds/ETFs:
  • You can add commodities for a hedge against inflation and market uncertainty.

An example split for a moderate-risk investor could be 60% equity, 30% debt, and 10% commodities.

2. Diversification by Market Capitalisation

• Large-Cap Funds:
  • They invest in established/ mature companies with strong profitability.
  • By including them in your mutual fund portfolio, you can achieve potential growth with less volatility compared to mid & small cap companies.
     
• Mid-Cap Funds:
  • Next, you can target companies with higher growth potential than large caps.
  • However, please note that these medium-sized companies carry more risk compared to large cap companies.
     
• Small-Cap Funds:
  • These are high-growth companies, but also the most volatile in the mix.
  • You can keep their allocation limited or the lowest as per you risk appetite.
     

An example split for a moderate-risk investor could be: 50% large-cap, 30% mid-cap, 20% small-cap (within your equity allocation).

3. Diversification by Industry/Sector

You can avoid over-concentration in a single sector and try to spread across multiple industries, such as:

A moderate-risk investor can avoid exceeding 20 to 25% in any one sector. 

Disclaimer: 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 

Some Mutual Fund Schemes You Can Consider For Diversification

1. Tata Banking and Financial Services Fund

   An open ended equity scheme investing in Banking & Financial Services Sector

   Exit Load	Risk Level	Benchmark
   0.25%	Very High Risk	Nifty Financial Services TRI

   Tata Banking and Financial Services Fund is an open-ended equity scheme that invests at least 80% of its assets in shares of companies from the banking and financial services sector in India. 

   You can start building your mutual fund SIP portfolio by investing ₹100 or ₹5000 in a lump sum.

   The fund selects companies classified under the financial services sector by AMFI. It tries to invest following the “Growth at Reasonable Price” approach. 

   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.

   

2. Tata Gilt Securities Fund 

   An open-ended debt scheme investing predominantly in government securities across maturity. A Relatively High Interest Rate Risk and Relatively Low Credit Risk

   Exit Load	Risk Level	Benchmark
   NIL	Moderate Risk	CRISIL Dynamic Gilt Index (AIII)

   This debt mutual fund invests mainly in government securities of various maturities. It can offer low credit risk but has a higher sensitivity to interest rate changes. 

   The goal of this scheme is to achieve long-term capital growth and income. Tata Gilt Securities fund also studies economic and interest rate trends to adjust its portfolio by buying securities through:

    - Public issues

    - Secondary markets

    - Auctions

   It may also hold money market instruments with strong ratings. You can include this scheme in your mutual fund portfolio if you have a 3+ year horizon.

   

    

3. Tata Gold Exchange Traded Fund

   An Open-Ended Exchange Traded Fund replicating / tracking domestic price of Gold.

   Exit Load	Risk Level	Benchmark
   NIL	High Risk	Domestic Price of Gold

   This is a gold exchange-traded fund (ETF). This scheme aims to match the returns of physical gold based on domestic market prices. However, there could be minor differences called “tracking errors”. Also, it does not guarantee returns. 

   As an investor, you can include this fund in your mutual fund portfolio to gain gold exposure without holding the metal physically. The minimum SIP amounts start from ₹100.

   

4. Tata Large and Mid-Cap Fund

   An open ended equity scheme investing in both large cap and mid cap stocks.

   Exit Load	Risk Level	Benchmark
   NIL	Very High Risk	Nifty Large Midcap 250 TRI

   Tata Large and Mid Cap Fund is an equity scheme that invests in both large and mid-sized companies. The fund selects stocks through detailed research and focuses on companies with:

    - Consistent performance

    - Low debt

    - Strong cash flows

   It also follows a “Growth at Reasonable Price” approach and the fund also actively adjusts allocations between large and mid-cap stocks. The minimum SIP amount is ₹100.

   

5. Tata Small Cap Fund

   An open ended equity scheme predominantly investing in small cap stocks

   Exit Load	Risk Level	Benchmark
   NIL (after 12 months)	Very High Risk	Nifty Smallcap 250 TRI

   Tata Small Cap Fund invests in smaller companies with:

    - Strong balance sheets

    - Good cash flows

    - Potential to grow earnings over the next 3 to 4 years

   This fund focuses on reasonable valuations and follows a “Growth at Reasonable Price” approach. It tries to select businesses that can deliver consistent earnings growth and generate free cash. 

   Furthermore, the fund prefers long-term “compounder” stocks and uses a bottom-up selection process. It keeps portfolio changes low and avoids global commodity companies. You can build a mutual fund SIP portfolio with this fund starting from ₹100.

   

Conclusion

By making a diversified mutual fund SIP portfolio, you can create an ideal balance between “risk” and “returns”. This can be done by spreading investments across:

• Asset classes
• Market caps
• Industries/ Sectors

In 2025, you can combine equity, debt, and commodities mutual funds as per your risk appetite, time horizon, and investment goals. Additionally, you can consider sectoral and market-cap diversification to further cushion the impact of market volatility. 

Remember that diversification cannot eliminate losses. However, it can reduce the impact of a single underperforming segment on your total portfolio returns. 

For more information, you can visit www.tatamutualfund.com. The Investor Service Centre of Tata Asset Management Pvt. Ltd. is located at Mulla House, Ground Floor, 51, M.G. Road, Near Flora Fountain, Mumbai – 400 001, Maharashtra. The office hours are Monday to Friday, 9:00 AM to 5:30 PM, and Monday to Saturday, 9:00 AM to 5:30 PM. For assistance, you can also call (022) 6282 7777 or email service@tataamc.com.

Now imagine turning that everyday spending story into an investment opportunity. That’s 

what the Tata India Consumer Fund is designed to do: give investors a chance to participate in India’s evolving consumption journey.

What is the Tata India Consumer Fund?

Think of India as a shopping mall that’s constantly expanding. The Tata India Consumer Fund is a sectoral mutual fund that invests in companies connected to India’s consumption growth story.

Key sectors it focuses on:

• FMCG brands – food, beverages, personal care
• Retail & lifestyle – apparel, malls, supermarkets
• E-commerce platforms – online shopping, delivery apps
• Consumer durables – electronics, appliances
• Auto & travel – cars, mobility, tourism

Note: The fund invests based on financial strength and long-term potential, not just short-term trends.

Why Does the Consumption Theme Matter Today?

India is like a teenager with their first paycheck—growing, energetic, and eager to spend. Here’s why the consumption theme matters today:

• Rising middle class: Higher disposable incomes could drive sustained demand. [Source:  MOSPI]
• Digital payments boom: UPI crossed 19 billion transactions in July 2025, making consumption easier than ever. [Source: NPCI]
• Tier 2 & 3 cities scaling up: Smaller cities are becoming mini-metros with growing purchasing power.
• Young demographics: Gen Z and millennials are shaping demand for premium and digital-first brands.
• Household spending growth: India’s private consumption grew ~7.2% in FY 2024-25, highlighting its role as a growth engine. [Source: PIB]

Who Could Consider Tata India Consumer Fund?

This fund may be suitable for investors who:

• Believe in India’s long-term consumption story.
• Already hold diversified funds and want a focused thematic addition.
• Have a long-term horizon (5+ years) to ride through market cycles.
• Can handle very high risk associated with thematic funds.

5 Reasons Investors Look at the Tata India Consumer Fund

1. You already consume these brands – now you could also invest in them.
2. Consumption is one of India’s fastest-growing long-term themes.
3. Research-driven selection – companies chosen based on fundamentals, not just popularity.
4. Start with just Rs. 150 SIP - an easy way to try a thematic fund.
5. Transparent benchmark – performance tracked against Nifty India Consumption TRI.

Risks to Keep in Mind

Like any thematic fund, this comes with risks:

• Concentration risk – exposure to one theme can increase volatility.
• Cyclicality – consumer demand can dip during inflationary or slowdown phases.
• Valuation risk – consumption stocks often trade at premium valuations.
• Not a core holding – best used as a satellite allocation alongside diversified equity.

How It Could Fit in Your Portfolio?

• Works as a satellite allocation in addition to core equity funds.
• SIPs may help average entry cost and reduce timing risk.
• Review your exposure annually to ensure it matches your risk profile and goals.

FAQs on Tata India Consumer Fund

1. What is the Tata India Consumer Fund?
It is a sectoral equity mutual fund in India that invests in companies linked to domestic consumption, such as FMCG, retail, e-commerce, autos, and consumer durables.
 

2. What is the benchmark of Tata India Consumer Fund?
The fund is benchmarked against the Nifty India Consumption TRI, which includes 30 companies from consumption-oriented sectors.
 

3. How does the Tata India Consumer Fund invest?
The fund invests in a portfolio of companies from consumption-linked sectors. Stock selection is research-driven, focusing on business strength and potential growth rather than short-term trends.
 

4. Is the Tata India Consumer Fund good for SIP?
Investors can start a SIP, subject to the minimum amount set by the scheme. SIPs may help in managing entry timing and building long-term exposure to the consumption theme.
 

5. What are the risks of investing in consumption funds?

• Concentration in one theme may increase volatility
• Sensitive to consumer demand cycles and inflation
• Valuation risk as consumer companies often trade at premiums
   

6. Are returns guaranteed in the Tata India Consumer Fund?
No. Mutual fund investments are subject to market risks and returns are not guaranteed. Please read the SID/KIM carefully before investing.
 

7. How long should I stay invested in a consumption fund?
Thematic funds like this are best considered for a long-term horizon (5 years or more) to potentially capture structural growth trends in consumption.

Final Thoughts

Everyday decisions—whether it’s picking up a shirt from your favourite store or ordering dinner from a leading ecommerce platform—fuel the dynamic engine of India’s consumption economy. The Tata India Consumer Fund offers investors a thoughtful and structured avenue to engage in this vibrant narrative, not merely as consumers, but as active stakeholders in the nation’s growth journey.

Why wait? Consider investing in the Tata India Consumer Fund and become a part of India’s evolving success story. For a wider range of opportunities, explore additional offerings from Tata Mutual Fund.

Tata India Consumer Fund Snapshot

This product is suitable for investors who are seeking*:

• Investment in equity/equity related instruments of the companies in the Consumption Oriented sector in India. 
• Long Term Capital Appreciation.

(Refer to the latest SID/KIM for exact investment minimums, SIP options, and exit load details.)

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them

SEBI is India’s financial markets watchdog and regulates mutual funds to protect investor interests. The SEBI (Mutual Funds) Regulations, 1996 (last amended as of March 04, 2025), is one such key document that contains various rules, such as:

• Minimum subscription limits
• Rules for handling oversubscription
• Timelines for refunds
• Penalties for delays
• Scheme winding up conditions, and more.

As an investor, knowing these rules allows you to understand how AMCs operate and how SEBI safeguards your mutual fund investments. 

Disclaimers:

• An Investor Education and Awareness Initiative by Tata Mutual Fund. To know more about KYC documentation requirements and procedure for change of address, phone number, bank details, etc., please visit: https://www.tatamutualfund.com/deshkarenivesh
   
• Please deal only with registered Mutual Funds, details of which can be verified on the SEBI website under ‘Intermediaries / Market infrastructure institutions.
   
• All complaints regarding Tata Mutual Fund may be directed to service@tataamc.com and/or https://scores.sebi.gov.in/ (SEBI SCORES portal) and/or https://smartodr.in/login
   
• Nomination is advisable for all folios opened by an individual, especially with sole holding, as it facilitates an easy transmission process. 
   
• This communication is a part of the investor education and awareness initiative of Tata Mutual Fund.