Tata Mutual Fund today announced the launch of the Tata Value Fund Series-1, a close ended equity fund (tenure of 1103 days) that focuses on investing in stocks that trade at a discount to their intrinsic value. The NFO will open from June 22 and close on July 6.
The fund's Investment philosophy is to focus on value, meaning scout for companies with cheap valuation and not cheap price that would create wealth for investors in the future, good quality management, clear growth trajectory and capital discipline track record, states the company press release.
Investments will be on the basis of parameters like price-to-book (P/B) ratio, price-to-earning (P/E) ratio, dividend yields (D/Y) of companies within its researched universe. The fund would also consider other quantitative parameters like return on equity (ROE) and return on capital employed (ROCE). The fund will be sector and market cap agnostic.
Sonam Udasi currently manages the Tata Equity P/E fund would manage this fund.
In a press release, Udasi said, "Presently, the Indian market is experiencing favorable opportunities for value investing. The equity market currently is going through a volatile phase. The S&P BSE Sensex touched its all-time high of 36,000 and is currently trading at around 35,000 levels. A volatile phase of the market is the best time to scout for value stocks, as stocks generally tend to fall below their intrinsic value."
Prathit Bhobe, CEO & MD, Tata Mutual Fund said, "We have been managing Tata Equity P/E Fund, which has a track record of more than 13 years and which follows the value-conscious style of investing. I am sure that our experience with Tata Equity P/E Fund would help manage Tata Value Fund Series-1. We believe that Indian markets offer investment opportunities and despite the short term volatility, we recommend that investors look to invest with a long term horizon."
