^ Subject to overall limit of 30 stocks across\nmarket capitalization.<\/p>\n\n\n\n

*Includes securitized debt (excluding foreign\nsecuritized debt) up to 70% of the Debt instruments of the Scheme. The Scheme\nshall not invest in foreign securitized debt and credit default swaps.<\/p>\n\n\n\n

The Scheme will comply with all the applicable\ncirculars issued by SEBI as regard to derivatives viz. SEBI Circular no.\nSEBI\/MFD\/CIR No. 03\/ 158 \/03 dated June 10, 2003, no. DNPD\/Cir-29\/2005 dated\nSeptember 14, 2005, no. SEBI\/IMD\/CIR No. 9\/108562\/07 dated November 16, 2007,\nno. Cir\/ IMD\/ DF\/ 11\/ 2010 dated August 18, 2010.The cumulative gross exposure\nto equity, equity related instruments, debt, money market instruments and\nderivatives shall not exceed 100% of the net assets of the scheme. The maximum\nexposure to derivatives will not exceed 50% of the net assets of the scheme. <\/p>\n\n\n\n

The scheme does not seek to invest in foreign\nsecurities. <\/p>\n\n\n\n

The Scheme may participate in repo\/reverse repo in\ncorporate debt securities. <\/p>\n\n\n\n

The Fund may engage in short selling of securities\nin accordance with the framework relating to short selling and securities\nlending and borrowing specified by SEBI.<\/p>\n\n\n\n

Not more than 20% of the net assets of the fund can\nbe deployed in stock lending. The scheme would limit its exposure, with regards\nto securities lending, for a single intermediary, to the extent of 5% of the\ntotal net assets of the scheme at the time of lending. Pending deployment of\nthe funds in securities in terms of investment objective of the Scheme, the AMC\nmay park the funds of the Scheme in short term deposits of the Scheduled\nCommercial Banks, subject to the guidelines issued by SEBI vide it’s circular\ndated April 16, 2007, as may be amended from time to time. <\/p>\n\n\n\n

#A mutual fund may invest in the units of REITs and\nInvITs subject to the following: <\/p>\n\n\n\n

• No mutual fund under all its\nschemes shall own more than 10% of units issued by a single issuer of REIT and\nInvIT; and <\/li>
• The scheme shall not invest \u2013<\/li>
• more than 10% of its NAV in the\nunits of REIT and InvIT; and <\/li>
• ii. more than 5% of its NAV in the\nunits of REIT and InvIT issued by a single issuer.<\/li><\/ul>\n\n\n\n

  (Source: Scheme Information Document<\/a>)<\/p>\n\n\n\n

  What will be the Investment Strategy?<\/strong> <\/p>\n\n\n\n

  The\ninvestment strategy for Tata Focused Equity Fund would be to achieve the\ninvestment objective by constructing a portfolio of equity and equity-linked\ninstruments. The strategy would be to construct a diversified portfolio across\nmarket capitalization and sectors. <\/p>\n\n\n\n

  However,\nin terms of diversification, the number of stocks in the portfolio would be\nrestricted to 30. The investment strategy is to focus on creating long term\nwealth for investors by constructing a portfolio of stocks based on their\nfundamental attributes like the potential for growth, management quality,\ncapital efficiency etc. and valuations. <\/p>\n\n\n\n

  The fund\nwould also actively explore tactical opportunities created on account of any\ntemporary market-specific, industry-specific and company-specific developments.<\/p>\n\n\n\n

  Who will manage the Tata Focused Equity Fund?<\/strong><\/p>\n\n\n\n

  Mr Rupesh Patel will be managing the Tata\nFocused Equity Fund. He holds a Bachelors degree in Civil Engineering (B.E.)\nand has an MBA in Finance to his credit. <\/p>\n\n\n\n

  Mr Patel has 19 years of work experience in\nEquities and Investment research. Since 2008 he has begun his journey with Tata\nAsset Management Ltd as a DGM for investments to grow as a Fund manager now. Prior\nto it, he has worked with Indiareit Fund Advisors Pvt. Ltd as Asst. Vice\nPresident for 8 months years. Besides that, for 7 years he worked as a Deputy\nGeneral Manager with Credit Analysis & Research Ltd.<\/p>\n\n\n\n

  Currently at the Tata Mutual Fund Mr Patel manages Tata Large Cap Fund<\/a>, Tata India Tax Savings Fund<\/a>, Tata Infrastructure Fund<\/a>, Tata Mid Cap Growth Fund<\/a>, Tata Ethical Fund<\/a> and Tata Offshore India Sharia Scheme.<\/p>\n\n\n\n

  Table 3<\/strong>: Performance\nof schemes managed by Mr Rupesh Patel<\/em><\/strong><\/p>\n\n\n\n

  \n Scheme\n Name<\/strong>\n <\/td>	\n Benchmark\n Name <\/strong>\n <\/td>	\n Managed\n Since<\/strong>\n <\/td>	\n Scheme\n Returns (%)<\/strong>\n <\/td>	\n Benchmark\n Returns (%)<\/strong>\n <\/td><\/tr>
  \n Tata Infrastructure Fund<\/a>\n <\/td>	\n Nifty 50\n TRI\n <\/td>	\n December\n 2013 – September 2019\n <\/td>	\n 14.57\n <\/td>	\n 12.40\n <\/td><\/tr>
  \n Tata Mid Cap Growth Fund<\/a>\n <\/td>	\n April\n 2016 – September 2019\n <\/td>	\n 11.64\n <\/td>	\n 13.33\n <\/td><\/tr>
  \n Tata Ethical Fund<\/a>\n <\/td>	\n September\n 2018 – September 2019\n <\/td>	\n 4.56\n <\/td>	\n 6.34\n <\/td><\/tr>
  \n Tata India Tax Savings Fund<\/a>\n <\/td>	\n S&P\n BSE SENSEX – TRI\n <\/td>	\n April\n 2015 – September 2019\n <\/td>	\n 12.63\n <\/td>	\n 9.99\n <\/td><\/tr>
  \n Tata Large Cap Fund<\/a>\n <\/td>	\n June\n 2018 – September 2019\n <\/td>	\n 7.19\n <\/td>	\n 8.61\n <\/td><\/tr><\/tbody><\/table><\/div><\/center>\n\n\n\n (Source: ACE MF, PersonalFN Research) \n(Data as on November 18, 2019)<\/p>\n\n\n\n As can be seen from the performance table,\nout of five schemes managed by the fund manager only two schemes have been\noutperforming their respective benchmark index. Hence the management style does\nnot give much confidence to investors.<\/p>\n\n\n\n The\noutlook for Tata Focused Equity Fund:<\/strong><\/p>\n\n\n\n In an\nendeavour to achieve the investment objective, the fund manager of the Tata\nFocused Equity Fund will invest across market cap and sector agnostic using a bottom-up\napproach of stocks. The portfolio will comprise of only 30 stocks of companies\nthat have the ability to grow over in the long run and the construction is\nbased on Growth At Reasonable Price (GARP) philosophy.<\/p>\n\n\n\n Illustration: Investment Philosophy Used for Portfolio Construction<\/em><\/strong><\/p>\n\n\n\n <\/figure><\/div>\n\n\n\n (Source: Tata Focused Equity Fund Presentation<\/a>)<\/p>\n\n\n\n However,\nin the current market environment, to construct a robust portfolio, that could\ngenerate higher returns is going to be a difficult task. Although it does offer\nvalue buying opportunities in the small-cap and mid-cap segments due to market\ncorrections. Even the large-cap segment witnessed a downfall, but it comprises\nof large blue-chip companies with strong balance sheets and proven track\nrecords. <\/p>\n\n\n\n Besides Q2FY20\ncorporate earnings of a number of heavyweights of bellwether index –the Nifty\n50–were in line with street expectations or have beat the estimates.\nOstensibly it is their best operational performance in more than two years even\namid the economic slowdown. <\/p>\n\n\n\n But amid\na scenario where wage growth has slowed, economic growth has slowed and is\nexpected to slow further, the credit risk is high, people are losing jobs,\nthere are losses due to inundation caused by incessant rainfall in many parts\nof the country, among a host of other factors; it would weigh on corporate\nearning even as the credit tap is opened.<\/p>\n\n\n\n So avoid\ngetting swayed by the forward statements in the earnings. Sadly, the oldest\ntrick in the book of ‘estimating earnings’ played out is that the near-term\nestimates are being toned down while the future earnings estimates are\nincreased. <\/p>\n\n\n\n The\nimpact of corporate earnings on your mutual fund portfolio would be hinged on\nthe portfolio characteristics of the schemes you hold in your portfolio. Hence,\nset realistic post-tax return expectations; don’t get carried away, for the\nfortune of the fund would be closely linked to a maximum of 30 stocks held in\nthe portfolio (multi-cap) managed by the fund manager to deal with the risk to\nachieve the stated objective is crucial. <\/p>\n","protected":false},"excerpt":{"rendered":" Tata Mutual Fund has a history of launching numerous NFOs back-to-back in the past. With the launch of Tata Focused Equity Fund (TFEF)Tata Mutual Fund is adding another fund to its table\u00a0 Tata Focused Equity Fund (TFEF), an open-ended diversified equity scheme which will follow a focused approach of investing in equity and equity-related instruments.…<\/p>\n","protected":false},"author":4,"featured_media":1276,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"cybocfi_hide_featured_image":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts\/1274"}],"collection":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/comments?post=1274"}],"version-history":[{"count":3,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts\/1274\/revisions"}],"predecessor-version":[{"id":1285,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts\/1274\/revisions\/1285"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/media\/1276"}],"wp:attachment":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/media?parent=1274"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/categories?post=1274"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/tags?post=1274"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}