With returns that are competitive with other hybrid funds and an experienced fund manager, what does the future of this fund look like? Read the full review to find out.
Investment Objective of Tata Retirement Savings Fund – Moderate Plan
The fund seeks to provide a financial planning tool for long term financial security for investors based on their retirement planning goals.
|Absolute returns (%)||33.17||15.44|
Tata Retirement Savings Fund – Moderate Plan Review
Tata Retirement Savings Fund-Moderate Plan is a balanced fund which invests your money in both equity securities and debt securities. It has more than 75.04% exposure to equity and 22.78% exposure to cash and cash equivalents such as T-bills, banker’s acceptance and money market instruments.
Its equity portion has large cap bias which means most of your money will be invested in stocks of large sized companies. Large cap companies tend to be stable as compared to mid and small cap companies.The fund has performed consistently and has been able to generate considerable returns over the different time period.
The fund has not only outperformed its benchmark across multi-trailing time period but has also outperformed its category funds by a considerable margin generating 33.17% and 15.44% returns over 1-year and 3-year period respectively.
The fund endeavours to identify sectors that are likely to do well over the medium term though and continues to have a higher share of domestic businesses that are lucrative as compared to export/ global businesses on account of better earnings growth.
The top overweight sectors in the fund are Financials, Services, Construction, Automobile and FMCG. The government’s focus on reviving consumption expenditure and infrastructure related spend will create positive demand scenario for companies in the portfolio.
The open-ended fund follows the bottom-up stock selection approach and picks fundamentally sound companies that are trading at a substantial discount from their intrinsic value with an objective of long-term capital appreciation over a business cycle.
Thus, the portfolio has healthy historical earnings growth when compared to category and has a rich valuation in terms of forward-looking cash flow metrics and prospective earnings basis.
Tata Retirement Savings Fund – Moderate Plan Fund Manager
Tata Retirement Savings Fund-Moderate Plan is managed by Amish Munshi and Murthy Nagarajan.
Murthy Nagarajan: Mr. Nagarajan is a M.Com, ICWA and PGPMS.Prior to joining Tata AMC he has worked with Quantum AMC as head fixed income, Mirae Asset Global Investment India Ltd.
Sonam Udasi: Mr. Udasi is a B.Com and also holds PGDM(Finance).Prior to joining Tata AMC he was associated with ASK Raymond James (Jun 2005-Jan 2006) as Lead Analyst (Reporting to Head Research), JM Financial AMC (Feb 2006-June 2007) as Senior Analyst (Reporting to CIO), Prime Securities (Aug 2007-Oct 2008) as Head Research (Reporting to President), BRICS Securities (Nov 2008-Apr 2010) as Consumer Vertical (Reporting to Head Equities) and IDBI Capital Market Services Ltd (Jun 2010-March 2014) as Head Research (Reporting to Executive VP).
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Disclaimer: the views expressed here are those of the author. Mutual funds are subject to market risks. Please read the offer document before investing.