Tata Mutual Fund AMC has a initiated new fund offer (NFO) of the Tata Multicap Fund. The NFO of the new scheme will commence on 17th August and end on 31st August 2018. Subsequently, the continuous buy/sell period of this diversified equity scheme would start on 10th September 2018. This scheme would focus on providing capital appreciation over the medium to long term. This is an open-ended mutual fund hence investors can invest in the scheme or redeem their investment on any business day.
Tata Multicap Fund would invest in equity and equity derivatives in a sector/market cap agnostic manner to create a diversified equity portfolio. Equity and equity-derivative investments would comprise between 65 to 100% of the scheme’s portfolio. Additionally, up to 35% of the scheme’s assets would be invested debt instruments including liquid scheme units and money market instruments. This scheme would however not invest in securitized debt or international securities.
This diversified scheme will be benchmarked against the S&P BSE 500 Total Return Index. The S&P BSE 500 features 3 year and 5 year returns of 12.28% and 18.54% along with a slightly high P/E of 25.66. Securities featuring greatest weight on this index include HDFC Bank, Reliance Industries, HDFC, Infosys, ITC and ICICI Bank.
Tata Multicap Fund would be managed by Sonam Udasi who also manages other leading schemes such as the Tata Equity P/E Fund, Tata Index Fund – Sensex and Nifty, Tata Banking & Financial Services Fund and Tata India Consumer Fund. Among these, the Tata Equity P/E Fund is currently ranked among India’s best performing value-oriented equity schemes with 5 year and 3 year returns of 27.55% and 16.59%.
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}