This is a mutual fund from Tata Mutual Fund AMC, part of the well-known Tata and Sons conglomerate. This is an PE equity fund. In order to understand this mutual fund, it is of utmost importance to break down its elements and comprehend each of its aspects starting with what P/E stands for and how it impacts investments.
P/E stands for price to earnings ratio which is a commonly used term in the market to determine how expensive or cheap a stock is. This is method for valuing a company which determines its per share price in relation to its per share earnings. It is also considered as an indicator of the amount an investor may be willing to pay for a share for every rupee of its earnings. This is a widely used screening parameter for value stocks is the Price to Earnings ratio. Higher P/E ratios typically indicate an overvalued stock, while a lower P/E tends to indicate an undervalued stock. However, the benchmark P/E values tend to vary from one industry to another.
Key Features of Tata Equity PE Fund
Tata Equity PE Fund pursues a value-conscious style of investing. This diversified equity scheme invests at least 70% of its assets in companies have a rolling twelve month P/E ratio lower as compared to the rolling twelve month P/E ratio of the BSE Sensex at the time of making the investment. Buying good companies at an attractive P/E ratio is a good discipline. However, it is not the only anchor. The Fund uses several other qualitative and quantitative parameters for buying stocks of specific companies. Tata Equity PE Fund strives to buy good stocks at cheap valuations instead of just cheap stocks.
Tata Equity PE Fund offers two dividend trigger options under the existing dividend option of Tata Equity PE Fund. These options are – Option A (Trigger A) and Option B (Trigger B) which are activated at 5% and 10% appreciation respectively.
- Dividend Trigger A: Under this option, the Fund will declare a dividend payout when there is an appreciation in Net Asset Value (NAV) of 5% or more from the last ex-dividend NAV during the immediate preceding calendar quarter.
- Dividend Trigger B: In this option, the Fund will declare a dividend when there is an appreciation in NAV of 10% from the last ex-dividend NAV during the immediate preceding calendar quarter.
Tata Equity PE Fund is managed by Mr. Sonam Udasi who has aruond 20 years of experience is equity research. He currently manages multiple equity schemes for Tata Asset Management AMC (Asset Management Company).
Also Read : How to Invest in Direct Mutual Funds Online?
Tata Equity PE Fund Equity Investment Specifics*:
| Number of Stocks | 49 |
| Top 10 Stocks (%) | 40.73 |
| Top 5 Stocks (%) | 26.29 |
| Top 3 Sectors (%) | 50.6 |
| Portfolio P/B Ratio | 3.05 |
| Portfolio P/E Ratio | 19.98 |
*The data is for illustrative purposes only and subject to periodic change. Fund data is based on information retrieved on 31st March 2018. Returns data and NAV are as per regular growth plan NAV on 26th April, 2018.
Tata Equity PE Fund Portfolio Aggregates*:
| Aggregates | Fund | Benchmark | Category |
| Average Market Cap (in Crore) | 51,098.44 | 280,644.95 | 53,940.45 |
| Giant (%) | 38.56 | 96.08 | 43.41 |
| Large (%) | 31.49 | 3.92 | 25.82 |
| Mid (%) | 26.2 | – | 24.25 |
| Small (%) | 3.76 | – | 8.15 |
| Tiny (%) | – | – | 0.2 |
*The data is for illustrative purposes only and subject to periodic change. Fund data is based on information retrieved on 31st March 2018. Returns data and NAV are as per regular growth plan NAV on 26th April, 2018.
Tata Equity PE Fund Top Holdings*:
| Company | Sector | Price to Equity ratio | 3-Year High | 3-Year Low | % Assets |
| HDFC | Financial | 20.24 | 8.04 | 0 | 8.04 |
| Yes Bank | Financial | 19.43 | 8.95 | 3.41 | 6.03 |
| Power Grid Corporation | Energy | 13.32 | 9.17 | 1.81 | 4.3 |
| Zee Entertainment | Services | 21.03 | 4.1 | 0 | 4.1 |
| Reliance Industries | Energy | 18.27 | 4.2 | 0 | 3.83 |
| Larsen & Toubro | Construction | 26.5 | 3.7 | 0 | 3.32 |
| Grasim Industries | Construction | 25.84 | 4.63 | 0 | 2.95 |
| Bajaj Auto | Automobile | 21.62 | 3.68 | 0 | 2.94 |
| Finolex Cables | Engineering | 30.38 | 5.26 | 1.91 | 2.71 |
| Ashok Leyland | Automobile | 34.71 | 4.25 | 0 | 2.51 |
| Mahindra & Mahindra | Automobile | 26.54 | 2.48 | 0 | 2.48 |
| Interglobe Aviation | Services | 21.7 | 2.52 | 0 | 2.27 |
| GAIL | Energy | 19.11 | 5.14 | 0 | 2.1 |
| City Union Bank | Financial | 21.09 | 3.43 | 0 | 2.03 |
| Tata Chemicals | Chemicals | 11.67 | 3.81 | 0 | 1.94 |
| Future Retail | Services | 50.2 | 3.06 | 0 | 1.74 |
| Muthoot Finance | Financial | 11.2 | 5.85 | 0 | 1.74 |
| Exide Industries | Engineering | 32.71 | 1.98 | 0 | 1.61 |
| Indian Oil Corp. | Energy | 7.86 | 2.75 | 0 | 1.61 |
| JM Financial | Financial | 19.77 | 2.15 | 0 | 1.55 |
| Tata Consultancy Services | Technology | 25.78 | 1.54 | 0 | 1.54 |
| Bharat Electronics | Engineering | 19.71 | 4.53 | 0 | 1.51 |
| Cyient | Technology | 20.38 | 1.53 | 0 | 1.5 |
| Maruti Suzuki India | Automobile | 36.34 | 2.45 | 0 | 1.43 |
| Raymond | Textiles | 50.9 | 2.07 | 0 | 1.41 |
*The data is for illustrative purposes only and subject to periodic change. Fund data is based on information retrieved on 31st March 2018. Returns data and NAV are as per regular growth plan NAV on 26th April, 2018.
Tata Equity PE Fund Performance*:
The following are the returns of the Tata Equity PE Fund based on the Net Asset Value (NAV) of regular growth plan as on 26th April 2018:
| Period | Returns (in percentage) | Rank |
| 1 Month | 6.1 | 47 |
| 3 Months | -1.1 | 51 |
| 6 Months | 3.4 | 86 |
| 1 Year | 14.6 | 81 |
| 2 Years | 28.6 | 11 |
| 3 Years | 17.2 | 29 |
| 5 Years | 25 | 13 |
*The data is for illustrative purposes only and subject to periodic change. Fund data is based on information retrieved on 31st March 2018. Returns data and NAV are as per regular growth plan NAV on 26th April, 2018.
Also Read : Best Equity Mutual Funds to Invest in SIP
Absolute Returns (in percentage)*:
| Year | Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Annual |
| 2017 | 15.9 | 4 | 6.2 | 6.3 | 39.3 |
| 2016 | -6.4 | 14.1 | 10 | -3.8 | 15.3 |
| 2015 | 3.4 | -4.7 | -5.1 | 4.8 | -0.1 |
| 2014 | 8.8 | 32.8 | 3 | 12.8 | 69.1 |
| 2013 | -10.1 | -4.4 | -0.7 | 14.9 | 0.9 |
*The data is for illustrative purposes only and subject to periodic change. Fund data is based on information retrieved on 31st March 2018. Returns data and NAV are as per regular growth plan NAV on 26th April, 2018.
Tata Equity PE Fund Returns vs. Category Average (Returns in %)*:
| Particulars | 1 Month | 3 Months | 6 Months | 1 Year | 2 Years | 3 Years | 5 Years |
| Fund Returns | 6.1 | -1.1 | 3.4 | 14.6 | 28.6 | 17.2 | 25 |
| Category Average | 5.2 | -4.5 | 1.7 | 10.3 | 17.6 | 10.3 | 11.5 |
| Difference of Fund Returns and Category Returns | 0.9 | 3.4 | 1.7 | 4.3 | 11 | 6.9 | 13.5 |
| Best of Category | 9.9 | 2.1 | 19.5 | 36.5 | 44.3 | 28.3 | 29.3 |
| Worst of Category | -5 | -18.6 | -17.5 | -18.5 | 4.4 | 3.2 | 6.9 |
| Benchmark Returns | 5 | -4.3 | 4.7 | 15.2 | 15.5 | 8.5 | 12.5 |
| Difference of Fund Returns and Benchmark Returns | 1.1 | 3.2 | -1.3 | -0.6 | 13.1 | 8.7 | 12.5 |
*The data is for illustrative purposes only and subject to periodic change. Fund data is based on information retrieved on 31st March 2018. Returns data and NAV are as per regular growth plan NAV on 26th April, 2018.
Tata Equity PE Fund Best and Worst Performance Periods*:
| Duration | Best Period | Worst Period |
| Month | 31.89 (May 06, 2009 – Jun 05, 2009) | -32.86 (May 12, 2006 – Jun 13, 2006) |
| Quarter | 77.48 (Mar 05, 2009 – Jun 04, 2009) | -41.65 (Sep 02, 2008 – Dec 02, 2008) |
| Year | 139.51 (Mar 09, 2009 – Mar 09, 2010) | -56.08 (Dec 03, 2007 – Dec 02, 2008) |
*The data is for illustrative purposes only and subject to periodic change. Fund data is based on information retrieved on 31st March 2018. Returns data and NAV are as per regular growth plan NAV on 26th April, 2018.
Tata Equity PE Fund Risk Measures*:
| Risk Measures (%) | Mean | Standard Deviation | Sharp Ratio | Sortino Ratio Variation | Alpha | Beta |
| Fund | 14.63 | 16.1 | 0.73 | 1.06 | 1.04 | 6.43 |
| S&P BSE Sensex | 6.36 | 13.27 | 0.26 | 0.41 | – | – |
| Category | 10.85 | 14.39 | 0.46 | 0.69 | 0.96 | 3 |
| Rank within Category | 10 | 110 | 18 | 18 | 92 | 11 |
| Number of funds in category | 121 | 121 | 121 | 121 | 121 | 121 |
*The data is for illustrative purposes only and subject to periodic change. Fund data is based on information retrieved on 31st March 2018. Returns data and NAV are as per regular growth plan NAV on 26th April, 2018.
Tata Equity PE Fund Trailing Returns (in %)*:
| Trailing Returns in % | YTD | 1 Day | 1 Week | 1 Month | 3 Months | 6 Months | 1 Year | 3 Years | 5 Years | 7 Years | 10 Years |
| Fund | 0.8 | 0.88 | 1.6 | 6.09 | -1.07 | 3.38 | 14.62 | 17.19 | 24.99 | 16.26 | 14.66 |
| S&P BSE 200 | 1.93 | 0.62 | 0.83 | 4.98 | -3.71 | 4.73 | 15.2 | 8.13 | 12.47 | 8.54 | 7.31 |
| Category | -2.17 | 0.31 | 0.04 | 5.02 | -3.75 | 2.93 | 14.06 | 13.01 | 18.91 | 12.84 | 11.35 |
| Rank Within Category | 15 | 6 | 7 | 26 | 14 | 51 | 50 | 11 | 3 | 2 | 3 |
| Number of Funds in Category | 126 | 126 | 126 | 126 | 126 | 124 | 121 | 117 | 102 | 49 | 43 |
*The data is for illustrative purposes only and subject to periodic change. Fund data is based on information retrieved on 31st March 2018. Returns data and NAV are as per regular growth plan NAV on 26th April, 2018.
Other Funds by Tata Asset Management
| Scheme Name | 3Y Returns (%) | AUM (Rs. Cr.) | Category |
| Tata Digital India Fund | 21.92 | 111.56 | Sectoral/Thematic Fund |
| Tata Banking and Financial Services Fund | 18.01 | 253.91 | Sectoral/Thematic Fund |
| Tata India Consumer Fund | 17.4 | 973.5 | Sectoral/Thematic Fund |
| Tata Retirement Savings Fund Progressive Plan | 14.17 | 451.51 | Multi Cap Fund |
| Tata Index Sensex Direct | 14.14 | 5.04 | Large Cap Fund |
| Tata India Tax Savings Fund | 13.2 | 1398.27 | ELSS |
| Tata Index Nifty Direct | 12.23 | 11.08 | Large Cap Fund |
| Tata Retirement Savings Fund Moderate Plan | 12.09 | 659.89 | Aggressive Hybrid Fund |
| Tata Large & Mid Cap Fund | 11.46 | 1297.88 | Large & Mid Cap Fund |
| Tata Midcap Growth Direct Plan | 11.31 | 692.48 | Mid Cap Fund |
| Tata Large Cap Direct Plan | 10.75 | 799.42 | Large Cap Fund |
| Tata Ethical Direct Plan | 10.32 | 517.86 | Sectoral/Thematic Fund |
| Tata Equity PE Fund | 8.78 | 3519.81 | Value Fund |
| Tata Retirement Savings Fund Conservative Plan | 8.76 | 133.5 | Conservative Hybrid Fund |
| Tata Gilt Securities Fund | 8.01 | 117.76 | Gilt Fund |
| Tata Income Fund | 7.49 | 112.41 | Medium to Long Duration Fund |
| Tata Dynamic Bond Fund | 7.09 | 701.43 | Dynamic Bond Fund |
| Tata Hybrid Equity Fund | 6.91 | 5552.16 | Aggressive Hybrid Fund |
| Tata Liquid Fund | 6.9 | 15156.38 | Liquid Fund |
| Tata Equity Savings Fund | 6.24 | 214.93 | Equity Hybrid Saving Fund |
{Data as on Feb 20, 2020; Source: Value Research}