Tata Equity Management Fund

Tata Equity Management Fund is managed by Atul Bhole. Tata Equity Management Fund seeks to understand this nature of markets and generate long term growth in equities through exposure to carefully selected stocks, combined with derivatives feature that aims to protect the portfolio from a downside risk while aiming to maximize long term returns.

Where does Tata Equity Management Fund invest your money?

Tata Equity Management Fund is a large cap fund. About 95.03% of the fund’s money is allocated to stocks of large sized companies, and 4.97% to stocks of mid-sized companies. Large cap companies are stable compared to mid cap and small cap companies yet mid cap stocks are not avoided due to prospects of kicker returns.

Suitable for what?
  • Child's education
  • Child's marriage
  • Planning for retirement
  • Home Purchase
Not suitable for what?
  • Creating wealth
  • Lifestyle needs
How has Tata Equity Management Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in July 2006, your value of investments would be around Rs 1.52 lakhs. If you had invested Rs 1 lakh five years back, your value of investments would be around Rs 1.05 lakhs. The performance has been better or similar to other large cap mutual funds. The fund has been giving around just 1% returns to those who have stayed invested for 5 years.

Assume you had invested Rs 10,000 every month in Tata Equity Management Fund through SIP for the past 5 years today you would have around Rs 7.9 lakhs.

How will Tata Equity Management Fund perform in the future?

Needless to say no one can predict the future of markets. We have firm belief in the future prospects of the Indian economy. If the Indian economy grows at 9% then the leading companies tend to do well. When the companies do well their stock prices follow their performance. So if you expect the economy to grow at 8% then you can expect top performing mutual funds to give you returns in excess of 14%.

Mutual fund schemes that have exposure to mid-sized companies tend to show results when their bet on few companies comes true. We advise you to avoid too much of star gazing and future prediction. Be reminded that equities are one of the asset classes that have the potential to beat inflation. Your aim for core portfolio should be to beat inflation. 

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
When to exit?

Withdraw when your goals are close to achievement. Do not remove the money when the markets go up or down. Do not panic. Stick to your goals.

How frequently you need to monitor the performance?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a year. Too much attention is not good.

What are the charges applicable?

A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of Tata Equity Management Fund is 2.50%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio. 

What are the tax implications?

The returns in a mutual fund are absolutely tax free, provided you do not withdraw within 1 year. 

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