What is Nifty Non-Cyclical Consumer Index Fund?

1 min read
What is Nifty Non-Cyclical Consumer Index Fund? Blog Image


Groww Mutual Fund recently launched India’s first Nifty Non-Cyclical Consumer Index Fund.

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