TATA Equity P/E Fund – The Port to Make Successful Investments

People make mutual fund investments for a variety of reasons. This could include achieving a huge wealth to fund their venture, or making enough money to support their children’s college education. Since every objective demands different magnitude of wealth, the portfolio shall be made accordingly containing funds that suit your needs.

However, here are certain funds that are best for generating value, which can suffice the majority of goals regardless of their nature. And, TATA Equity PE Fund is one such fund that can bring you closer to your objectives. In this article, we are going to discuss some major points about this fund, which will help you take superb decision for you financial well-being.

Let’s begin!

The Background

TATA Equity PE Fund (G) is one of the premier funds in the Indian mutual fund market. The main aim of the fund is to generate enough capital for the investors to accomplish their immediate as well as long-term goals. It was introduced in the market in 2004 by one of the most powerful AMCs in India, TATA Mutual Fund. Though it is a pure equity, there is certain space reserved for cash and cash equivalents to maintain liquidity in the portfolio.

The Wealth

Being in the market for over 15 years is enough time to create a huge corpus, and TATA Equity PE Fund (Growth) has indeed used time to its best advantage. As of 31st May 2019, the fund’s wealth was recorded at a magnitude of ₹5,602 crore, which is a commendable amount given the market conditions and other factors affecting the performance of the fund. This also brings us to the conclusion that there is plenty scope for further development in TATA Equity PE Fund, and thus, it will suit any portfolio directed towards building wealth.

The Portfolio Analysis

-- Asset Allocation Deciding which stocks shall form part of the portfolio is a critical task, and the responsibility lies on the shoulders of the fund managers. If though wrong, the entire idea of wealth building can tumble down like house of cards, and the investors will have to face disappointment. At TATA Equity PE Fund – Regular Plan (G), care has been taken to ensure that only high-performing stocks are added to the portfolio and there is optimum diversity among the stocks. Hence, the portfolio comprises of a variety of stocks as follows: -

• Giant & Large Caps – 52.31%
• Midcaps – 28.79%
• Small Caps – 4.93%

-- Concentration & Valuation of Stocks The portfolio is divided into 41 stocks, where the top 10 stocks belong to the highest performing sectors of the market and have an occupancy of 5023%. This is followed by the next best segment of the market from where the other top 5 stocks are bought to the tune of 32.64%.
Banking, Energy, and Automobile are the top 3 sectors that together occupy a majority interest in the portfolio (62.35%). To add more diversification, the fund managers have further introduced stocks from other high-performing industries such as Construction, Technology, and FMCG.

-- The Companies Involved
To make sure that the stocks are powerful enough to bear the market risks and produce high returns, the fund managers have elected companies that enjoy an established position in the market. Industry giants such as Reliance Industries, Larsen & Toubro, ITC, ICICI Bank, and Tech Mahindra are some of the participants of the portfolio.

The Past Performance

As a result of a diverse portfolio, TATA Equity PE Fund has scored phenomenal returns in the past. According to the latest records maintained by the fund house, the scheme has ploughed returns to the tune of 13.16% in just the last five years, and the average yield to date also rests at a high level of 18.84%.

There’s an armada of mutual fund options sailing in the ocean of the investment market, which has made it difficult to determine the best among them. The above information explains that TATA Equity PE Fund (G) is among the very few profitable options, and hence, can be used to conquer your goals.