Tata Pure Equity Mutual Fund has outperformed its benchmark index and category in three of the past four years.
FUND FACTSInception: May 1998
Category: Equity: Large & Mid Cap
Type: Open ended
AUM: Rs 606.41 crore
Benchmark index: BSE Sensex
WHAT IT COSTS?
NAV: Rs 97.04 (G) | Rs 36.51 (Div)
Minimum investment: Rs 5,000
Minimum SIP amount: Rs 500
Expense ratio: 2.20%
Exit load: 1% if redeemed within one year
WHO SHOULD INVEST IN IT?The scheme aims at medium- to long-term capital growth, with 100% equity investments in large-cap, liquid blue-chip companies. However, the fund gravitated towards mid-caps in 2003.
In 2010, the fund stood ahead of most of its peers and its benchmark. The fund not only outperforms its peers in a rising market, but also protects the downside when the market tanks.
In 2008 it lost only 49.21%, while the category average was down 52.97% and the Sensex, its benchmark, 52.45%. The fund adds stability to a portfolio due to its large-cap tilt and diversified portfolio and has a good long-term track record.
MEET THE FUND MANAGER
Fund manager M Venugopal has maintained a large-cap bias that has never gone under 50%. The mid-cap exposure comprises of companies such as Ashok Leyland and Pantaloon, which are potential large-caps.
Data and analysis of the fund have been sourced from Value Research
