Jun 23, 2018 3 min read

New Fund Offer Launched: Tata Value Fund Series 1

NFO Calling! Invest in Tata Value Fund Series 1 and get benefited by investing in potential value-able companies.

Tata Mutual Fund has recently launched Tata Value Fund Series-1, a closed-ended equity fund. With an overall tenure of around three years, 1,103 days to be exact, the focus of Tata Value Fund will be on investing in stocks which are traded at a discount to their intrinsic value. Sonam Udasi, the fund manager of Tata Equity P/E Fund, would be managing Tata Value Series-1 Fund. The opening date of this New Fund Offer is June 22, 2018, and the subscriptions will be closed on July 6, 2018. Minimum investment required in this scheme is Rs 5000, where one can choose any option from growth or dividend plan. These were just the basics of the scheme. Let’s find out more about this fund.

Investment Philosophy of Tata Value Fund Series 1

As per the investment philosophy of the scheme, a broad focus is on value, i.e., they look forward to investing in companies with cheap valuations, although not cheap price, good quality management, clear growth trajectory, and capital discipline.

Nature of the Scheme

Its investment objective is to provide capital appreciation over the tenure of the fund through a diversified equity portfolio following value investment strategy.

Asset Allocation

As per its indicative allocation %, the fund will majorly invest in equity and related instruments where the minimum allocation will be around 80%, and the maximum can reach up to 100% of the total assets. There will be some investment in cash, debt, and money market instruments too which will range in between 0-20%.

Why Invest in Tata Value Fund Series 1?

In the equity market, companies are often undervalued. This may lead to underpricing in the shares of specific companies. Here’s where value investing works. Value investing is all about exploiting the difference in price between the market value of a company and the intrinsic value of the business. The scheme of Tata Mutual Fund finds outstanding companies for a sensible price. And in the heart, they carry two attributes which are research and discipline.

Other Attributes About Tata Value Fund Series 1

  • The scheme has an auto-switch facility which allows investors to direct the redemption proceeds to Tata Equity P/E Fund on the redemption payout date.
  • Investments in this NFO will be based on parameters such as price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, dividend yields (D/Y) of companies within its researched universe.
  • The fund would also consider other quantitative parameters like return on equity and return on capital employed, and the scheme will not be keen on sectors and market capitalizations.

To initiate investment in this NFO, visit https://www.mysiponline.com/mutual-funds/new-fund-offers/tata-value-fund-series-1-g/nfo2632

Experts’ Take

We all know that the equity market is going through a rough phase where volatility is one of the biggest concerns. In January 2018, where S&P BSE Sensex was at its all-time high reaching the limit of 36,000 points, the current trading is seen around 35,000 levels. Thus, this volatile market, where several stocks have fallen below their intrinsic value, is the best time to search and invest in value stocks.

For more information concerning this, connect with the experts at MySIPonline. We will be more than happy to serve you with all our might.