Tata AMC has been in the business since June 1995 but its growth was sluggish. It picked up pace after April 2003 when it launched the Tata Infrastructure Fund and the Tata Dividend Yield Fund. The biggest advantage for the AMC is the strong brand name that it rides on.
Asset Allocation
The break-up of assets worth Rs 3,073 crore for equity funds, balanced funds and monthly income plans.
Equities: 73.96%, Cash: 16.34, Debt: 9.70
Rising Profits
The fund house witnessed a 34% growth in profit for 2007-8 due to several new launches.
2006-7: Rs 21 crore, 2007-8: 28.2 crore
Top 5 Fund Schemes
Four of the top five funds are debt funds. The only equity plan is the Tata Infrastructure Fund.
Liquid High Invest Plan: 23.5%, Floater Fund: 15%, Infrastructure Fund: 8.6%, Gilt RIP: 2.1%, Gilt Securities Short Maturity Fund: 1.7%
Top 5 Equity Holdings
The top holdings are some of the best equity picks and share an almost equal space in the AMC’s portfolio.
Reliance Industries: 5.8%, BHEL: 4.8%, HDFC Bank: 4.6%, Bharti Airtel: 4.02%, ONGC: 4% (The holdings are % share of the total equity value, not the total AUM)
Fund House Style
The fund house has no specific investing style other than that it takes low risks. On the equity side, it has some old, yet strong, offerings like Tata Pure Equity and Tata Select Equity. It is on the debt front that it scores with commendable performance.
Return percentile: 60, Risk percentile: 40
If you had invested Rs 10,000 on January 1, 2000 in Tata Growth, its value would be Rs 41,660 on April 28, 2009, an absolute growth of 316.6%.
