Launched in June 2004, the scheme has offered 18.09% returns in 10 years, 10.82% returns in five years, 23.48% in three years, and 26.33% in one year. During the same time period the benchmark (Nifty 500 – TRI) offered 15.29%, 12.97%, 24.71%, and 21.77% returns respectively.
If someone invested a lumpsum of Rs 1,000 in the fund when it was launched, the investment would have become Rs 22,817. A monthly SIP made in the fund for a period of 10 years would have offered 14.63% returns. In the five-year horizon, the scheme offered XIRR returns of around 16.13%. In the three-year horizon, the scheme has offered 17.78% SIP returns. An SIP investment would have offered 15.30% returns since inception.
These returns may look appealing to you but the scheme has been struggling in the last 10 years. Based on yearly returns, the scheme underperformed its benchmark five years in the last 10 years (in 2013, 2018, 2019, 2020, and 2021). It outperformed its benchmark in 2014, 2015, 2016, 2017, and 2022. Based on yearly returns for the last 10 years, the scheme has offered less returns than its peers except for 2016. In 2016, the scheme offered the highest return of around 16.18%.
Among 11 value schemes that have completed 10 years, Tata Equity P/E Fund ranked first among its peers and offered 18.09% trailing returns. Tata Equity P/E Fund ranked second among 12 value schemes that have completed seven years, and offered 14.30% returns. The scheme ranked fifth amongst 12 value schemes that have completed five years and offered 10.82% returns. In one year’s horizon, the scheme ranked second and offered 26.33% return.
The portfolio of the fund is diversified across 37 stocks, with top 10 stocks accounting for 50.59%. As on May 31, the fund has 92.88% allocation to equity, and 7.12% in others which include cash and cash equivalents. The scheme is primarily large cap oriented with HDFC Bank Ltd., ICICI Bank Ltd., ITC Ltd., and HDFC Ltd as the top holdings.As per the scheme information document with data as on March 31, 2023, the scheme has 2,29,171 folios.
Tata Equity P/E Fund is an open ended equity scheme following a value investment strategy. Tata Equity P/E Fund would follow a value investing strategy for the management of its portfolio. The Fund would seek to identify undervalued companies in the market, and predominantly invest in companies whose rolling P/E is lesser than that of the S&P BSE SENSEX (these companies may or may not be a part of the S&P BSE SENSEX). The Fund could also invest in equity shares of other companies and in debt and money market instruments to the extent of 30% of the net assets.
