What is Nifty Non-Cyclical Consumer Index Fund?

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About Nifty Non-Cyclical Index Fund:

It is a type of mutual fund that aims to generate long-term capital growth by investing in securities of the Nifty Non-Cyclical Consumer Index (TRI).
This index contains 30 companies that are not majorly impacted by economic instability and are in regular demand, making them a good investment option during economic downturns.
Non-cyclical stocks are also known as defensive stocks; these stocks outperform their industry in the stock market despiteeconomic instability.
They are not affected by cyclical changes and are in constant demand due to the everyday needs of consumers, such as food, water, and other utilities.

Key Facts about NIFTY:

NIFTY is a market index introduced by the National Stock Exchange (NSE),India’s largest stock exchange.
It is a blended word: National Stock Exchange and Fifty coined by the NSE.
Nifty was established in 1996 with the name CNX Nifty. Further, in 2015, it was renamed Nifty 50.
NIFTY 50 is a benchmark-based index and also the flagship of NSE.
It represents the performance of the 50 largestand most actively traded stocks listed on the NSE.
It includes stocks of companies from 12 sectors, such as financial services, information technology, consumer goods, metals, pharmaceuticals, energy, etc, and collectively represents the stock market and economic trends of India.
NSE ranks companies based on free-float market capitalisation.

It is one of the two main stock market indices in India, the other being SENSEX, a product of the Bombay Stock Exchange (BSE).

Q1: What are Mutual funds?

Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. They’re managed by professional fund managers or management teams who make investment decisions based on the fund’s objectives.

Source: Groww Mutual Fund launches Nifty Non-Cyclical Consumer Index Fund