What is 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 despite economic 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:

• It 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.
• It was established in 1996 with the name CNX Nifty. Further, in 2015, it was renamed Nifty 50. It is a benchmark-based index and also the flagship of NSE. It represents the performance of the 50 largest and 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).