Tata Equity PE Mutual Fund has outperformed its category four times in past five years.
INCEPTION: June 2004
CATEGORY: Equity Multi-cap
AUM: Rs 641.13 crore
BENCHMARK INDEX: BSE Sensex
WHAT IT COSTS
NAV: Rs 43.59 (G)
MIN INVESTMENT: Rs 5,000
MIN SIP AMOUNT: Rs 500
EXPENSE RATIO: 2.17%
EXIT LOAD: 1% if redeemed within one year
WHO SHOULD INVEST IN IT?
The fund's strategy is to invest at least 70% of its assets
in stocks that have a trailing P/E less than that of the Sensex at the time of investment. The fund manager has a free hand with the balance 30%.
With around 60 stocks and the allocation to the top five amounting to about 21% (1-year average), the portfolio is not too aggressive with individual bets though strong sector exposures have been a norm.
The fund's strategy requires patience and investors should not get disheartened by underperformance over the shortterm. if we look at the returns over a five-year period, it is among the top three in its category. It could fulfil the role of a portfolio core fund.MEET THE FUND MANAGER
Fund manager Bhupinder Sethi says, "We use qualitative and quantitative screens such as quality of management, capital efficiency exhibited, earnings growth, free cash flow generated, valuations and liquidity (to choose a stock)."Data and analysis of the fund have been sourced from Value Research.