Taurus Mutual Fund was one of the primary few private sector Mutual Funds to be listed with Securities and Exchange Board of India (SEBI). Established as a trust in 1993, it soon rose to prominence in the market.
Even today the company has been consistently providing its customers with top class products. Companies from various Nations and Institutions like UK, USA and IFM have invested in Taurus Mutual Fund. However, as is with many firms in the country, Taurus Mutual Fund also keeps on changing the nomenclature of the benchmark index.
What Is Benchmark?
As the name suggests, a benchmark is a point of reference that tells the investor about the performance of a mutual fund in relation to other investment firms in the market. In the year 2012, SEBI made it mandatory for fund houses to declare a benchmark index.
However, this benchmark is independent and is based on the objectives of the concerned fund. In India, the Nifty and BSE Sensex the are the most extensively tracked benchmarks for large-cap funds. Other benchmarks are CNX Smallcap, CNX Midcap, CNX IT, BSE 200, CNX 500, BSE 100, etc.
An example to understand it better: Benchmarking is the process through which a company measures its products, services and practices against its peers or the leaders in its industry.
Taurus Mutual Fund Changes Nomenclature Of Benchmark Index
The most recent events regarding the changing of benchmark indices of Taurus Mutual Fund are:
On 20th March 2009, The Following Changes Were Made
Taurus Bonanza Fund benchmark index was changed from BSE 200 to BSE 100.
- Taurus Bonanza Fund Nature & Objective: The Taurus Mutual Fund developed to provide capital appreciation by investing in equity & equity-related instruments mainly of large-cap stocks Asset Allocation: Equity and equity-linked instruments: 0-100%, Debt Securities: up to 10%, Money Market instruments: up to 25%.
- Taurus Discovery Fund benchmark index was changed from BSE 200 to CNX Midcap Index.
- Taurus Discovery Fund Nature & Objective: The Taurus Mutual Fund that provides capital appreciation by identification of low priced stocks by price discovery mechanism. The schemes investment strategy is mainly oriented towards midcap stocks. Asset Allocation: Equity and equity-linked instruments: 0-100%, Debt Securities: up to 20%, Money Market instruments: up to20%.
On 2nd May 2013, Following Change In Benchmark Indices Was Made
Taurus Ethical Fund benchmark index was changed from CNX 500 Shariah to S&P BSE 500 Shariah
- Taurus Ethical Fund Nature and Objective: Taurus Ethical Fund is an Open Ended Equity Oriented Scheme that invests in companies which are in compliance with the Shariah norms. The scheme primarily invests in equity and equity related instruments. The fund is actively managed and invests in diversified portfolios.
On 9th November 2015 The Changes Made In Taurus Mutual Fund Benchmark Index Were
Taurus Nifty Index Fund benchmark index was changed from CNX Nifty to Nifty 50.
- Taurus Nifty Index Fund Nature and Objective: Taurus Nifty Index Fund is an inactively managed fund which duplicates the benchmark Index by participating in securities of benchmark Index in a similar proportion/weight-age. Investors who are watching for diversification in long-term benefit, medium risk, and who do not have expertise or time to track or assess individual stocks, the actively managed funds should be the ones looking towards Index Funds.
- Taurus Discovery Fund benchmark index was changed from CNX Midcap Index to Nifty Midcap 100.
- Taurus Discovery Fund Nature and Objective: To capitalize on accessible opportunity on the potential of growth presented by undervalued penny stocks with low risk in investments. These stocks being less in price and if dividend paying, decent dividend profit will give anticipated cushion in the unstable capital market. Its benefits include – under-priced stocks, companies in growth industries and Midcap companies with growth potential.
On 7th April 2016, Following Changes In Taurus Mutual Fund Benchmark Were Made
Taurus Discovery Fund benchmark index was changed from Nifty Midcap 100 to Nifty Free Float Midcap 100.
- Taurus Discovery Fund Benefits: Its merits include long-term capital appreciation, investment in equity and equity related instruments through price discovery mechanism midcap in nature. This category of Taurus Mutual Fund is suitable for individuals looking at better than average returns in the long-term investment outlook and a higher tolerance for risk.
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