Launch of TATA Focused Equity Fund

tata focused fund

Launch of TATA Focused Equity Fund, An Open Ended Equity Scheme investing in Maxium 30 Stocks across Market Cap (i.e., Multi Cap), closing on 29th Nov 2019.

In our continuous endeavour to update our valued investor about the New Investment Ideas / Theme, we would like to share that, TATA Focused Equity Fund, An Open Ended Equity Scheme investing in Maximum 30 Stocks across Market Cap (i.e., Multi Cap) will closing for subscription on 29th Nov 2019.

 

TATA FOCUSED EQUITY FUND – SELECT RIGHT, SWING HARD

Focused Funds are constructed with a maximum of 30 stocks. This provides the scope for concentration in high conviction ideas.

Tata Focused Equity Fund aims to generate returns by investing in stocks with long runways for growth regardless of market cap or sector. With a bottom up stock picking approach, the fund aims to carefully analyse and invest in compounding stocks following the GARP—Growth At Reasonable Price philosophy.

 

HITTING THE BULLS EYE

Investing in a focused fund can be riskier than diversified funds, the upside can also be substantially higher

MORE DIVERSIFICATION ≠ MORE RETURNS

Analysing Nifty returns shows, additional stocks do not necessarily contribute to higher gains. Each consecutive set of additional 10 stocks results in lower marginal gains contributed

Data as of 30th Sep’19. Illustration given here is to explain the concept of Focused Funds.

The investments in Tata Focused Equity Fund will not be restricted to stocks of Nifty 50 Index.

 

TATA FOCUSED EQUITY FUND – PORTFOLIO CONSTRUCTION

Portfolio constructed on the principles of low churn, active positions and concentration

Our Observation & Recommendation : 

Ø  In the present Market Scenario, replete with uncertainty, we recommend that under the Asset Class of MULTICAP, Investor should have at some allocation.
Ø  Experienced Fund Management Teams both on Equity & Fixed Income fronts.
Ø  The recent movements in Equity Markets is Conducive for Investing in Multi Cap at this juncture.

Ø  Fund Manager will devise the Portfolio Afresh in 1 – 2 months, capturing the Volatility.    

Author: Midas Finserve

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