Tata Equity P/E Fund turned Rs 10,000 monthly SIP into Rs 1.82 crore in 20 years

Launched in June 2004, the scheme has offered 17.04% returns in 10 years, 21.14% returns in five years, 25.78% in three years, and 52.21% in one year. During the same time period the benchmark (Nifty 500 – TRI) offered 15.27%, 19.76%, 19.81%, and 39.98% returns, respectively.

Also Read | These 6 mid cap MFs turn Rs 5 lakh lumpsum investment into Rs 1 crore in 20 years

If someone had made a monthly SIP of Rs 10,000 in this fund since inception, the current value would have been Rs 1.82 crore with an XIRR of 17.55%. A monthly SIP made in the fund for a period of five years offered XIRR returns of around 28.38%. In the three-year horizon, the scheme has offered 33.47% SIP returns. An SIP investment would have offered 21.94% returns in seven years.

An investment of Rs 1 lakh in the fund when it was launched would have become Rs 35.15 lakh now with a CAGR of 19.46%. In a three- and five- year period, a lump sum investment of Rs 1 lakh would have turned into Rs 2 lakh and Rs 2.59 lakh, respectively.

Based on yearly returns for the last 20 years, the scheme has offered negative returns three times. In 2008, it lost 53.84%. In 2011 and 2018, the scheme lost 23.76% and 7.06%, respectively. The scheme underperformed against its benchmark (NIFTY 500 – TRI) in 2006,2012, 2013, 2018, 2019, 2020, and 2021.

Also Read | These four equity mutual fund categories gave over 25% return in three years

In 2008, when the benchmark went down by 56.54%, the scheme sank by 53.84%. In 2011 too, the scheme went down by 26.40% whereas the fund was down by 23.76%. In 2009, the scheme offered around 103.59% returns.

The portfolio of the fund is diversified across 55 stocks, with top 10 stocks accounting for 35.07%. As on May 31, the fund has 93.61% allocation in equity, and 6.37% in others, which include cash and cash equivalents. The scheme is primarily largecap-oriented with an allocation of around 44.39%. While 35.95% is allocated in smallcap, 13.28% is in midcap, and 6.37% in others.

As per the information document as on May 31, 2024, the scheme has 2,25,325 folios.

Tata Equity P/E Fund is an open ended equity scheme following a value investment strategy. Tata Equity P/E Fund would follow a value investing strategy for the management of its portfolio.

Primarily, at least 70% of the net assets would be invested 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 stocks, according to the SID of the scheme.