scorecardresearchTata Equity P/E Fund: An SIP of ₹10,000 in this value fund would have

Tata Equity P/E Fund: An SIP of 10,000 in this value fund would have grown to a whopping 1.78 crore in 18 years

Updated: 06 Dec 2022, 11:29 AM IST

Tata Equity P/E Fund is a value mutual fund scheme that invests in stocks with huge potential, and has a rolling P/E ratio of less than S&P BSE Sensex. It has allocated 71% in large cap stocks, 18.34% in mid-cap stocks and 10.67% in small cap stocks. A regular investment of 10,000 since the launch of the fund in June 2004 has grown to 1.78 crore.

Tata Equity P/E fund is a value mutual fund that was launched in June 2004

Tata Equity P/E fund is a value mutual fund that was launched in June 2004

Earning huge returns and achieving financial goals call for consistent savings and an investment discipline. When someone invests on a regular basis, one gets to reap disproportionately huge returns on investments, particularly towards the later part of the tenure. This is also referred to as the magic of compounding.

Sample this: If someone were investing 10,000 regularly ever since Tata Equity P/E Fund was launched in June 2004, the accumulated investment would have grown to a whopping 1.78 crore. Sounds incredible, but true!

Thanks to a high compound annual growth rate of 18.15 percent, a total investment of 22.1 lakh would have multiplied by nearly seven times.

If someone had made a regular investment of 10,000 each month, the corpus would have grown to 7.72 lakh in five years, while the invested sum stands at 6 lakh.

In 10 years, the sum would have grown to 29,24,403 while the amount of investment is less than half of it i.e., 12,00,000.

The fund is managed by Sonam Udasi and Amey Sathe. It has both regular and direct plans with growth and Income Distribution cum Capital Withdrawal or IDCW variants.

This is a value mutual fund scheme which primarily invests in value stocks. These stocks are the ones which have huge future potential because either the market has not recognised the value or they are facing some temporary hiccups which are likely to go in the foreseeable future.

Tenor                             Investment Rs) Accumulated returns (Rs) CAGR (%) 
5 years                                                     6,00,0007,72,5799.61
10 years                                       12,00,00029,24,40315.78
18 years +                                                 22,10,000 1.78 crore18.15

(Source: Regular returns as on Nov 30)

Key details of fund scheme:

Tata Equity P/E Fund invests in the sectors that are expected to grow in 1-1.5 years and the companies which have the potential to outperform the sector.

The fund scheme invests at least 70 percent of the net assets in equity shares whose rolling P/E ratio on past four quarter earnings for individual companies is less than rolling P/E of the S&P BSE Sensex.

The fund scheme has allocated 71 percent in large cap stocks, 18.34 percent in mid-cap stocks and 10.67 percent in small cap stocks.

Top 10 stocks in portfolio include ICICI Bank, HDFC Bank, HDFC, ITC, RIL, Power Grid, ACC, Axis Bank, HCL Technologies and Bajaj Auto.

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First Published: 05 Dec 2022, 05:34 PM IST