The scheme will be benchmarked against Nifty 500 multicap 50:25:25 total returns index and will offer two plans – regular and direct. The fund will be managed by Rahul Singh (Equity), Tejas Gutka (Equity), Murthy Nagarajan (Debt) & Arvindkumar Chetty (Overseas).
“Tata Multicap Fund focuses on combinations – across Market Caps, Strategies, Themes and Sectors with Growth at Reasonable Price or GARP as the underlying philosophy aiming to improve the risk adjusted returns of the overall portfolio and potentially provide a smoother journey to the investor. We believe that the Tata Multicap fund can be well paced to capture the potential of a broad-based economic growth outlook for India over next 3-5 years,” says Rahul Singh, CIO – Equities, Tata Asset Management.
According to the press release, the fund’s portfolio will constitute securities of companies which are at various stages of the earnings cycle aiming to provide the right balance between stability and opportunities. These three segments of the earnings cycle can be broadly bucketed as Earnings Stability, Earnings Upgrades and Earnings Turnaround. Such a combination will help to have (i) companies growing at a stable rate which provides a base, (ii) companies benefitting from a change in earnings cycle which can lead to valuation rerating and (iii) lastly, companies recovering from an adverse situation based on industry or management turnaround.