Most of the successful investors in the world have one thing in common – they knew when and where to invest. They had the vision that nobody else possessed, the vision to identify the stocks that were running low on their value but dwelled great future potential. One of the most important advices quoted by Warren Buffet is – “Be fearful when others are greedy, and be greedy when other are fearful” – which points at buying undervalued stocks that show signs of future growth.
TATA Equity PE Fund, an equity value-oriented fund, works on the same principle of buying good quality stocks at lower than their intrinsic value. This philosophy has proved to be very successful for the fund so far, and has made many dreams come true. There are many interesting facts associated with TATA Equity PE Fund (G), some of which are described in the write-up below. So, sit back, relax, and improve your investing abilities just by reading this 5-minute write-up.
The Snapshot
Arbitrage is one of the hidden places of making profits. However, it takes a vivid observation to find the sweet spot. And, TATA Equity PE Fund – Regular Plan (G) has been laced with the strategy to find that sweet spot. The fund primarily invests in stocks whose trailing PE ratio is lower than that of the BSE SENSEX. This way, the fund unlocks an immense growth potential and paves the way for huge capital appreciation.
Following the value-oriented policy, TATA Equity PE Fund has been able to set many milestones. For instance, the fund has accumulated assets worth a whopping ₹5,029 crore as recorded on 31st January 2019. Further, it has raised the general bar of performance in the value-oriented category, thus forcing the peers to improve on their products and make them more investor-oriented.
The Portfolio Design
The portfolio structure has been designed on a very simple logic – to buy at less and sell at more. Almost 90% of the total assets are invested in low priced equity instruments, leaving the rest of the gap for debt and related instruments. A condensed account of the inter-distribution of the stocks, prepared by the technical team of MySIPonline, can be seen from the table below:
Further, to make the portfolio stronger and more capable, stocks from across different industries have been included in the portfolio. This helps in extracting the growth from all dimensions of the economy and reduce the impact of any downfall. Please have a look at the table below that shows the different industries along with their respective weights in the portfolio: -
The above two charts give us plenty of information that the fund managers of TATA Equity PE Fund have left no stone unturned in nurturing the portfolio with all possible value sources. This, thus, makes it a profitable venture for conquering all your future endeavours.
The Final Note
Investing in mutual funds puts a lot on stake, especially when you are looking forward to make a fortune through this route. Hence, it is very important to find those funds that can aptly fit your bill. MySIPonline has been suggesting top performing funds for years, and have helped uncountable investors in making a solid future plan. If you are looking forward to a solid value addition, then look no further than TATA Equity PE Fund (G).
