Consider investing in Tata Housing Opportunities Fund NFO to benefit from the housing boom in India

Tata Housing Opportunities Fund NFO from 16th August to 29th August!

Tata Housing Opportunities Fund

Tata Housing Opportunities Fund NFO opened on 16th August and will close on 19th August. It is an open-ended equity scheme which will invest in India's housing sector. The investments will be in the housing sector and allied industries. The benchmark index is Nifty Housing Index (TRI). The fund looks like a good long-term buying opportunity. 

The biggest expense for most Indians is their house. We spend so much on housing that we start saving for a house from our very first job. There are various allied industries to housing as well, like cement, steel, paints, bathroom fittings, electricals, plumbing, tiles, etc. Many companies from this sector are listed on the Indian stock markets. Most of these businesses are good long-term bets, and therefore Tata Housing Opportunities Fund might be a good bet for the long term. 

Related:  All about IPOs in India

Where will the fund invest?

Most of the investments will be made in companies that are either in the housing sector or allied industries. The materials that go into the housing sector will be of particular interest. You might be buying the products of these companies without realizing their potential of these companies. Now, you can benefit from the growth of these companies whose products you might already be using.

The companies in this sector are expected to benefit from the demographic dividend of our country. With the rising per-capita income and the rise of the middle class, the companies in this sector might turn out to be multibaggers. The rising young and educated workforce who want to spend on a good house will benefit the stocks in this sector.

The fund manager, Tejas Gutka, has 14+ years of experience in the equities and fixed income industries. Prior to joining Tata Asset Management, he worked at Tamohara Investment Managers. There he was responsible for managing the firm’s flagship Tamohara Long Term Equity Strategy (long-only small- & midcap portfolio). He believes in holding a diversified portfolio and focuses on asset allocation rather than timing the markets.

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Key details and dates

The NFO opens on 16th August and closes on 29th August. The minimum amount you need to invest in the fund is Rs 5,000. You can invest more amount in multiples of Re 1. The NFO looks like it will benefit from the housing boom in India, and if you are a long-term investor, you can consider the fund to benefit from the opportunities in the housing and allied sectors.

Related: How IPOs differ from NFOs?

Tata Housing Opportunities Fund



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