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Tata Midcap Fund: Fund Analysis
Tue, Jun 13, 2017
Source : Yash Jashnani, Citrus Interactive

Tata Mid Cap Growth Fund is an open ended midcap equity diversified fund. The investment objective of the scheme is to provide income distribution and/or medium to long term capital gains.

The fund has an AUM of Rs. 621 crore as on 30th April, 2017 which has increased by Rs. 75 crore compared to last year.

Performance

The fund has given an average performance as seen in the table given below. It has beaten its benchmark in the 3- and 5-year time period but not in the year-to-date (YTD), 6 months, 1 year and since inception time periods. However, it has beaten the category average in all the time periods mentioned in the table.

Scheme Name

YTD

6 Months

1 Year

3 Years

5 Years

Since Inception

Tata Mid Cap Growth Fund

25.12

11.92

31.2

30.23

25.11

11.79

 NIFTY FREE FLOAT MIDCAP 100

25.47

13.66

37.07

27.25

19.35

18.39

Category Average

18.75

9.21

27.78

22.15

19.07

NA

Rank

48/157

26/157

48/157

24/146

21/138

NA

Figures are in % as on 30th April 2017; Returns above 1 year in Compounded Annual Growth Rate (CAGR)

In terms of the calendar year returns the fund has beaten the benchmark in 2013, 2014 and 2015 but not in the calendar years 2012 and 2016. It has generated higher returns than the equity diversified category in all the years except 2016.

Scheme Name

2012

2013

2014

2015

2016

Tata Mid Cap Growth Fund

37.69

6.55

80.04

10.83

-2.22

 NIFTY FREE FLOAT MIDCAP 100

39.16

-5.1

55.91

6.46

7.13

Category Average

33.94

5.17

54.28

3.64

4.56

Rank

43/137

59/140

17/143

18/151

149/157

All figures in %

Risk: In terms of measures of risk such as standard deviation (measured over the last 3 years) the fund has taken higher risk compared to its category median and in terms of Beta (measured over the last 3 years) the fund has taken lower risk compared to its category median.

 

Standard Deviation

Beta

Tata Mid Cap Growth Fund

0.98

0.84

Category Median

0.92

0.92


  Risk-Adjusted Return: In terms of Treynor and Sharpe Ratio (measured over the last 3 years) the fund has provided higher risk-adjusted returns than the category median.           

 

Treynor

Sharpe

Tata Mid Cap Growth Fund

0.11

0.1

Category Median

0.06

0.06


Portfolio

Sector concentration: The fund’s concentration in the top 3, 5 and 10 sectors is lower than the category median.

 

Top 3

Top 5

Top 10

Tata Mid Cap Growth Fund

26.04

39.13

62.25

Category Median

31.91

43.51

63.4

Figures are in % as on 30th April 2017

Company concentration: The Fund’s Concentration in the the top 3, 5 and 10 companies is lower than the category median.

 

Top 3

Top 5

Top 10

Tata Mid Cap Growth Fund

11.27

17.14

29.82

Category Median

16.18

24.27

41.21

Figures are in % as on 30th April 2017

Number of Equity Holdings: The Fund currently holds 52 stocks in its portfolio (30th April 2017), which is higher than the median stock count of the equity diversified category, which currently stands at 46. In the last 5 years the equity holding averages to 55.

Cash Equivalent:        

Its cash equivalent for April 2017 was 3.28%. The average cash allocation for the last five years is 3.37%. Its maximum allocation to cash over the last two years is 10.39% in September 2015 and lowest was 1.96% in June 2014. In 2017 it had an average cash allocation of 2.22%.

Portfolio Characteristics

The top 5 sectors include Engineering – Construction, Pharmaceuticals & Drugs, Bank – Private, Cement & Construction Materials and Pesticides & Agrochemicals.

In the last 6 months the fund has bought Cox & Kings (India) Ltd., Equitas Holdings Ltd., Future Retail Ltd., Muthoot Finance Ltd., NIIT Technologies Ltd., Petronet LNG Ltd., Piramal Enterprises Ltd., Tata Elxsi Ltd., Trident Ltd., Union Bank Of India and Nilkamal Ltd.

Stocks of CCL Products (India) Ltd., Century Plyboards (India) Ltd., Cera Sanitaryware Ltd., Container Corporation Of India Ltd., Divis Laboratories Ltd., Eicher Motors Ltd., Glaxosmithkline Consumer Healthcare Ltd., Heritage Foods Ltd., Kansai Nerolac Paints Ltd., L&T Technology Services Ltd., Multi Commodity Exchange Of India Ltd., Parag Milk Foods Ltd., United Breweries Ltd. and V-Mart Retail Ltd. have been dropped from its portfolio in the last 6 months


Process

The investment objective of the scheme is to provide income distribution and/or medium to long term capital gains.

The scheme will invest 65% - 100% in Equity & Equity Related companies and it would invest 0 % - 35% in Debt including Cash and Money Market Instruments. The fund will not make any investments in any unlisted securities of associate or group companies of sponsors. The fund will also not make any investment in privately placed securities issued by associates or group of companies. The fund may invest not more than 25% of the net assets in listed securities of group companies.

The scheme will invest at least 65% in mid cap stocks.

Fund Managers  

Gopal Agarwal

Mr.Gopal Agarwal has taken over the fund since April 2017. He has an experience of over 15 years in the finance and finance related services.Currently he is associated with Tata Mutual Fund as the CIO, Chief Investment Officer, of Equities where he is responsible for the overall equity investment performance and in addition he also manages and co-manages few equity funds.

Mr. Gopal Agarwal was previously associated with Mirae Asset Management Company where he was the CIO and Head – Equity and later re - designated as CIO/Chief Strategist where he was responsible for the overall fund management in equity and fixed income domain.

He has vast experience in the field of finance and financial related services.

He holds a Masters in Business Administration and a B.E. degree in Chemical Engineering.

Danesh Mistry

Mr. Danesh Mistry has been associated with Tata Asset Management Company Ltd. for more than 7 Years in the team as Research Analyst and over the years he has tracked companies in consumption, real estate, infrastructure and construction, telecom, media, shipping, logistics, textiles, education and aviation sectors. Currently he is Assistant Fund Manager managing equity Schemes.

Mr. Danesh Mistry has over 14 years of experience spread across equity research, mortages and investment including private equity and capital markets. At Tata Asset Management Company, Mr. Danesh Mistry has also worked on developing the alternate investment platform as Principal AIF.

Mr. Danesh Mistry is a graduate in commerce from HR College, Mumbai University and holds a post graduate diploma in business administration from IES CCDC.


Our View

Tata Mid Cap growth has delivered good performance compared to the equity diversified category. It maintains a diversified portfolio. We expect the new fund manager at the helm to benefit the performance in future.


 


 

 
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