Earn 21.58% Returns in Five Years with Tata Equity PE Fund
Mutual Fund investment market is full of unique schemes for investors. Every fund house is trying to come up with new ideas from time to time to attract investors and help them earn well. Among the list of these fund houses, one is Tata Mutual Fund. In this article, you will get to read about its one of the schemes, named Tata Equity PE Fund and how you can earn 21.58% returns by investing in it for five years. Let's read the analysis of this fund from the MySIPonline expert's point of view.
Tata Equity PE Fund - An Overview
Launched on June 29th, 2004, this scheme by Tata Mutual Fund helps investors earn capital appreciation along with regular income. Under this scheme, the investment is made in the equity and equity related instruments of those companies whose rolling P/E is lower than the rolling P/E of S&P BSE Sensex.
The Performance Analysis of Tata Equity P/E Fund
Performance-wise, this scheme has done really well, as can be seen from the following cases.
1. Three-Year Returns
This scheme has yielded 13.63% of returns in 3 years time period which is much more than both the return rate generated by the benchmark and category.
2. Five-Year Returns
In five years time period, this scheme has yielded the returns of 21.58% which is again better than its category and the benchmark returns.
3. Seven-Year Returns
4. Ten-Year Returns
The above trailing return tables for seven and ten years again show that it is a better performer in comparison to its category and benchmark. In all the above scenarios, it can be seen that the investor has earned maximum in the investment made for five years.
How Are the Assets Allocated?
The assets under management as on September 30th, 2018 is Rs. 4730 crore which it has invested across equity, debt, and money market instruments. In terms of equity, the investment has been expanded across giant cap, large cap, mid cap, and small cap, respectively. It has invested majorly in the giant cap equities with the investment percentage of assets being 50.52%. The top three sectors in which it has invested the most are Financial, Energy, and Automobile. All these are expected to grow with time as a result of their high usage and demand.
*As on September 30th, 2018
The Investment Strategy
The investment strategy that is followed here is value investment strategy. Under it, those stocks are selected which are available in the market at the prices lower than their original price.
How Is the Risk Managed?
The standard deviation of this scheme by Tata Mutual Fund is 16.65 which is more than its category and benchmark which shows that it is more prone to fluctuations comparatively. The Sharpe ratio of this scheme is 0.58 which is more than its benchmark and category which shows that it generates better returns with the risk taken.
The End Note
Although the returns generated in five years is maximum, it should be kept in mind that there are a number of factors to be considered. Its asset allocation seems to be fine and the risk to return ratio is also better comparatively. The market condition that prevailed during the five year time should also be considered. If it seems similar to the anticipated conditions for the period you will be investing in, then you may do so. For a simple investment procedure, you may log in to MySIPonline and in case of any query, you can post the same at https://goo.gl/WofRJm.