This small-cap mutual fund gave 38.09% returns in 3-year period; should you invest? The preference is for businesses that have the potential to grow earnings at a strong pace with free cash generation. In its short running time so far, the fund has built a healthy track record, but has sharply lagged its index over the past year
ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.Tata Small Cap Fund
BASIC FACTS
DATE OF LAUNCH
12 NOVEMBER 2018
CATEGORY
EQUITY
TYPE
SMALL CAP
AUM*
Rs.6,015 crore
BENCHMARK
NIFTY SMALLCAP 250 TOTAL
RETURN INDEX
WHAT IT COSTS
NAV**
GROWTH OPTION
Rs.29.27
IDCW**
Rs.29.27
MINIMUM INVESTMENT
Rs.5,000
MINIMUM SIP AMOUNT
Rs.500
EXPENSE RATIO# (%)
1.76
EXIT LOAD
For units in excess of 12% of the investment,1% will be charged for redemption within 365 days
*AS ON 31 AUG 2023
**AS ON 4 OCT 2023
#AS ON 31 AUG 2023
FUND MANAGER
CHANDRAPRAKASH PADIYAR
4 YEARS, 11 MONTHS
Recent portfolio changes
New entrants
FDC, Graphite India, Netweb Technologies India, Nippon Life India Asset Management, PCBL, Time Technoplast (July). Automotive Axles, Eureka Forbes (Aug).
Complete exits
Craftsman Automation (Aug).
Should You Buy
This small-cap fund has a ‘true to label’ positioning, with nearly the entire portfolio invested in this segment. The preference is for businesses that have the potential to grow earnings at a strong pace with free cash generation. It adopts a low-churn strategy and runs a fairly diversified, yet compact, portfolio. The fund is comfortable running a higher cash position in certain market conditions, which is evident now. In its short running time so far, the fund has built a healthy track record, but has sharply lagged its index over the past year. The fund needs to get back on its feet to establish itself as a solid offering in this segment.
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This story originally appeared on: India Times - Author:Faqs of Insurances
