According to Arnav Pandya, Tata Pure Equity Fund is suitable for investors with slightly conservative approach with investment horizon of 3 years or more.
Tata Pure Equity Fund is a large cap biased Fund which focuses on investing in fundamentally strong and undervalued large cap companies. The Fund adopts a mix of top down and bottom up approach to stock picking with a bias towards bottom up approach. Across time frame, this fund has delivered good returns and is suitable for investors with slightly conservative approach, reckons Arnav Pandya.
Inception: May 1998
Assets under Management: Rs 593 crore at the end of March 2013
Fund Manager: Pradeep Gokhale & Nainesh Rajani
- The fund focuses its investments on undervalued large cap companies. At the end of October 2011, the fund had the highest exposure to the consumer non durable space with nearly 16 per cent of the portfolio present in this area. Banks, software and petroleum products were some of the other areas with a significant presence. Infosys was the top individual holding in the portfolio. Reliance Industries, HDFC bank, ITC, HUL, Bharti Airtel and M&M were some of the other top stocks. The portfolio turnover ratio was 78 per cent and the BSE Sensex was the benchmark for the fund.
- By the end of April 2012, there was a change witnessed in the portfolio as banks had climbed to the top of the sector charts with a 17 per cent share. Consumer non durables, software, finance and petroleum products were some of the other leading sectors. Tata Motors- DVR was the top individual holding with a share of just more than 6 per cent. HDFC Bank, ICICI bank, ITC, Infosys, HUL and IDFC were some of the other top stocks in the portfolio. The portfolio turnover ratio had come down to 56 per cent.
- Later during the year at the end of year at the end of November 2012 banks and consumer non durables remained as two of the leading sectors in the portfolio. The fund was now having a slightly higher stake in its leading holdings. HDFC was the top stock with a share of over 8 per cent of the portfolio. HDFC bank, ICICI bank, HCL tech, ITC, HUL, Grasim and Infosys were the other stocks in the top 10 list.
- Six months later at the end of May the situation was not much changed on the sector front as well as the individual stocks. HDFC continued to the leading individual holding with the pecking order after it present in the form of HDFC Bank, ICICI Bank, ITC, Infosys and Reliance Industries. The portfolio of the fund was now steady in terms of its composition and changes. The fund has been an outperformer over the one and three year time periods.
- This fund is suitable for investors who are slightly conservative plus they want an exposure to large cap stock and have a time horizon of more than 3 years in front of them.
- Arnav Pandya
The author is a Chartered Accountant and a Certified Financial Planner