The Tata Nifty 50 ETF is a passive investment vehicle managed by Tata Mutual Fund, designed to replicate the performance of the Nifty 50 Index by investing in the same proportion as the index constituents.
Fund Overview:
- Launch Date: January 1, 2019
- Fund Manager: Sailesh Jain, with over 21 years of experience, has been managing the fund since December 17, 2018
- Benchmark Index: Nifty 50 Total Return Index (TRI)
- Expense Ratio: 0.08% (as of December 29, 2023)
- Fund Size: ₹596.36 crore (as of December 29, 2023)
Tata Nifty 50 ETF share price
As of March 1, 2025, the Tata Nifty 50 ETF is trading on the National Stock Exchange (NSE) under the ticker symbol “NETF.” The latest available share price is ₹252.44, reflecting an increase of ₹3.87 or 1.56% from the previous close.
Over the past year, the ETF has delivered a return of approximately 10.32%. The fund’s price-to-book (P/B) ratio stands at 12.17. The 52-week high for the ETF is ₹282.96, while the 52-week low is ₹223.
Investment Objective:
The primary objective is to provide returns that closely correspond to the total returns of the Nifty 50 Index, subject to tracking errors. As a passively managed fund, it aims to mirror the index’s performance by holding all its constituent stocks in the same weightage.
Portfolio Composition:
As of December 29, 2023, the fund’s portfolio closely mirrors the Nifty 50 Index, with investments spread across various sectors:
- Financial Services: 35.03%
- Information Technology: 13.61%
- Oil, Gas & Consumable Fuels: 11.36%
- Fast-Moving Consumer Goods (FMCG): 9.13%
- Automobile & Auto Components: 6.46%
The top holdings include prominent companies such as HDFC Bank Ltd., Reliance Industries Ltd., Infosys Ltd., ICICI Bank Ltd., and Tata Consultancy Services Ltd.
Performance Metrics:
Since its inception on January 1, 2019, the Tata Nifty 50 ETF has delivered returns of 18.86% as of December 31, 2023. The fund’s performance is closely aligned with its benchmark, the Nifty 50 TRI, which returned 18.95% over the same period.
Investment Details:
- Minimum Investment for New Investors: 50,000 units and in multiples thereof
- Additional Investment for Existing Investors: 50,000 units and in multiples thereof
- Entry Load: Not Applicable
- Exit Load: Nil
Risk Factors:
Investors should be aware that the fund is subject to market risks, including potential tracking errors due to fees, expenses, and liquidity of the underlying securities. It’s essential to read the scheme’s offer document carefully before investing.
How to Invest:
Investors can purchase units of the Tata Nifty 50 ETF through the National Stock Exchange (NSE) using the ticker symbol “NETF.” Alternatively, investments can be made directly through Tata Mutual Fund’s official website or authorized distributors.
Is Tata Nifty 50 ETF good?
Tata Nifty 50 ETF can be a good investment option for certain investors, depending on their financial goals, risk appetite, and investment strategy. Here’s a detailed analysis to help you decide:
Pros of Tata Nifty 50 ETF
1) Low Expense Ratio:
- With an expense ratio of 0.08%, it is one of the cheapest ways to invest in the Nifty 50 index, making it cost-effective compared to actively managed mutual funds.
2) Diversification:
- Since it tracks the Nifty 50 index, you get exposure to 50 of the largest and most stable companies in India across various sectors like banking, IT, FMCG, and energy.
3) Passive Investing:
- This ETF is passively managed, meaning it does not rely on fund managers’ decisions and simply follows the index, reducing human bias and the chances of underperformance.
4) Decent Liquidity:
- It is listed on NSE, meaning you can buy and sell anytime during market hours at live prices.
5) Steady Historical Performance:
- The ETF has delivered around 18.86% CAGR returns since its inception (2019), closely tracking the Nifty 50 TRI index (18.95%).
Cons of Tata Nifty 50 ETF
1) Tracking Error:
- Since it is an ETF, there could be slight differences between its returns and the Nifty 50 Index due to cash holdings, expenses, and fund management inefficiencies.
2) Market-Dependent Performance:
- It does not outperform the market—if Nifty 50 falls, the ETF also falls. This makes it less attractive during bearish markets compared to actively managed funds that may take defensive positions.
3) Requires a Demat Account:
- Unlike mutual funds, you need a Demat and trading account to invest in this ETF, which might not be ideal for traditional mutual fund investors.
4) Lower Liquidity Compared to Larger ETFs:
- While it is tradable, ETFs like Nippon Nifty 50 ETF or SBI Nifty 50 ETF have higher liquidity, meaning tighter bid-ask spreads.
Who Should Invest?
- Long-Term Passive Investors who want to mirror the Nifty 50 without active management.
- Low-Cost Investors who prefer a low expense ratio compared to actively managed funds.
- Traders & Short-Term Investors who want exposure to the Nifty 50 but with easy entry and exit.
- Beginners in Equity Markets looking for a simple and diversified stock market investment.
Who Should Avoid?
- Those looking for higher returns than Nifty 50 (Active funds might be better).
- Investors who do not have a Demat account or prefer traditional mutual funds.
- Those who want a defensive portfolio during market downturns.
Final Verdict: Is Tata Nifty 50 ETF Good?
Yes, if you are looking for a low-cost, diversified, and passive way to invest in the Indian stock market. However, if you want higher-than-index returns, active management, or lower market risk, then this might not be the best option.
Tata Nifty 50 ETF Returns
As of December 31, 2023, the Tata Nifty 50 Exchange Traded Fund (ETF) has demonstrated consistent performance since its inception on January 1, 2019. Below is a summary of its annualized returns:
| Period | Returns (%) |
| 1-Year | 10.32% |
| 3-Year | 15.45% |
| Since Inception (2019) | 18.86% |
These figures indicate that the ETF has closely mirrored the performance of its benchmark, the Nifty 50 Total Return Index (TRI), which returned 18.95% over the same period. The fund’s expense ratio is 0.08%, and it manages assets worth ₹596.36 crore as of December 29, 2023.
The portfolio is diversified across sectors such as Financial Services (35.03%), Information Technology (13.61%), and Oil, Gas & Consumable Fuels (11.36%).
Tata Nifty 50 ETF Top Holdings
As of July 31, 2024, the Tata Nifty 50 Exchange Traded Fund (ETF) maintains a diversified portfolio designed to mirror the Nifty 50 Index, providing investors with exposure to India’s top 50 companies across various sectors. Below is an overview of its top holdings and sector allocations:
| Company | Sector | Allocation (%) |
| HDFC Bank Ltd. | Financial Services | % |
| Reliance Industries Ltd. | Oil, Gas & Consumable Fuels | % |
| Infosys Ltd. | Information Technology | % |
| ICICI Bank Ltd. | Financial Services | % |
| Tata Consultancy Services Ltd. (TCS) | Information Technology | % |
These top five holdings constitute approximately 41.90% of the ETF’s total portfolio.
Sector Allocation:
| Sector | Allocation (%) |
| Financial Services | 35.03% |
| Information Technology | 13.61% |
| Oil, Gas & Consumable Fuels | 11.36% |
| Fast-Moving Consumer Goods (FMCG) | 9.13% |
| Automobile & Auto Components | 6.46% |
This diversified allocation ensures that investors gain broad exposure to the Indian economy through a single investment vehicle.
Additional Portfolio Insights:
Number of Stocks: The ETF holds 50 stocks, aligning with the Nifty 50 Index.
Portfolio Turnover Ratio: 9.43%, indicating a relatively low level of buying and selling within the portfolio compared to the category average of 20.19%.
Market Capitalization Exposure:
- Large Cap Investments: 78.5%
- Mid Cap Investments: 4.94%
- Small Cap Investments: 0%
Strengths of Tata Nifty 50 ETF
1) Low Expense Ratio
- With an expense ratio of 0.08%, it is a cost-effective way to invest in the Nifty 50 index, making it cheaper than actively managed mutual funds.
2) Diversification Across Sectors
- The ETF provides exposure to 50 of India’s largest companies across financial services, IT, energy, FMCG, and other key sectors, reducing sector-specific risks.
3) Market-Linked Growth Potential
- Since it tracks the Nifty 50 Index, the ETF grows in line with India’s top-performing stocks, making it a good option for long-term wealth creation.
4) Liquidity & Flexibility
- Being listed on NSE, it can be bought and sold at real-time market prices during trading hours, unlike traditional mutual funds that are priced only once a day.
5) Passive Investment Strategy
- As an index fund, it does not rely on fund manager decisions, reducing human error and increasing transparency.
6) No Lock-In Period
- Unlike ELSS (Equity Linked Saving Schemes) or ULIPs, there is no lock-in period, giving investors flexibility to buy and sell anytime.
7) Ideal for Beginners & Passive Investors
- Investors looking for market returns with minimal effort can benefit from this ETF without researching individual stocks.
Risks of Tata Nifty 50 ETF
1) Market Volatility Risk
- Since it mirrors Nifty 50, the ETF will also fall during market corrections or economic downturns. It does not protect against losses like actively managed funds might.
2) Tracking Error
- Although the ETF aims to match the Nifty 50, minor differences (tracking errors) arise due to fund expenses and cash holdings, which may slightly impact returns.
3) Requires Demat & Trading Account
- Unlike mutual funds, you need a Demat and trading account to invest, which may not be convenient for all investors.
4) No Outperformance Over Nifty 50
- Active mutual funds may outperform the index in certain market conditions, while this ETF only delivers market-average returns.
5) Liquidity Concerns
- Some larger ETFs (like Nippon Nifty 50 ETF or SBI Nifty 50 ETF) have higher trading volumes, meaning Tata Nifty 50 ETF may have slightly wider bid-ask spreads, affecting buying/selling efficiency.
6) Dividend Not Guaranteed
- While companies in the Nifty 50 pay dividends, this ETF does not guarantee direct dividend payouts, as they are reinvested in the fund.
Final Verdict: Is Tata Nifty 50 ETF a Good Choice?
✔️ Yes, if:
- You want low-cost, passive investing with returns matching the Nifty 50 index.
- long-term investor who believes in the growth of India’s top companies.
- You prefer liquid investments with no lock-in period.
❌ No, if:
- You seek higher-than-market returns (Active funds may be better).
- do not have a Demat account or prefer direct mutual fund investments.
- You want defensive investment strategies to avoid losses in market downturns.
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