What is Value mutual Fund ?

Tata Value Fund Series 1 - NFO

SCHEME DETAILS:-
SCHEME NAME	TATA VALUE FUND SERIES 1
NFO DATES	Open on 22nd June.  Close on 6th July (15 Days)
TYPE OF SCHEME	A close-ended equity scheme  following a  value investment strategy
FUND MANAGER	Mr. Sonam Udasi
BENCHMARK	S&P BSE 200 Index TRI
MIN. INVESTMENT AMOUNT	Rs. 5,000  and in multiple of Re.1/- thereafter
LOAD STRUCTURE	Entry Load: Nil; Exit Load: Nil
AUTO SWITCH FACILITY	Under this facility redemption  proceeds of the investor  will get invested in the  Tata Equity P/E Fund on the redemption pay-out date
PLANS & OPTIONS	Regular & Direct Plans  with Growth & Dividend (Pay-out)  Options

INVESTMENT PHILOSOPHY:-

• Focus on value, but it's more important for an investment to be able to create wealth
• Investments will be basis on:

·         A good return ratio profile of the company

·         Good quality management

·         Has a clear growth trajectory

·         Capital discipline track record of the investee companies

• Focus will be on wealth compounders and to avoid value traps
• The fund will be sector and market cap agnostic

What is Value Fund:-

Value Investing is a strategy of investing in stocks that trade at less than their intrinsic value. The goal is to identify companies that one believes are undervalued relative to the market or are trading at discount to their intrinsic value. This fund seeks to invest in stocks that are deemed to be undervalued in price based on fundamental characteristics. Value investing is often compared with growth investing which focuses on emerging companies with high growth prospects.

Why Value Strategy?

• Volatility in current market has provided opportunity: When market is going through a phase of volatility the real value of various companies may go below their intrinsic value.

• Value Investing works across market cycles: Value stocks with strong fundamentals usually have the potential for stable growth no matter what market cycle we are in.

• Time in the market is important than timing the market: Any equity investment is meant for long term investors to gain a meaningful growth of their investments. Similarly, in value investing to unlock the true potential of a value stock, time in the market is very important.

WHY CLOSE ENDED VALUE STRATEGY?

• Volatility in current markets has provided opportunity.

The currents markets have been volatile in recent times, there is a sense of uncertainty in the markets due to various domestic and international factors. When markets are going through a phase of volatility the real value of various companies may go below their intrinsic value.

• Close Ended Fund Advantage

The aim of the scheme is to identify companies which are trading at a discount to their intrinsic value, the idea is over the period the true value of the such companies will be realized by the market.  

The purpose of the strategy would be defeated if one doesn't stay invested till the value is not unlocked. 

A close ended fund gives Fund Manager advantage to stay true the Investment Strategy of the fund and create wealth for investors.

• Value Investing works across market cycles:

The aim of the scheme is to have a portfolio with value companies backed by strong business fundamentals and be wealth compounders over the period. 

Any company with a strong fundamental has potential to withstand market volatility across market cycles. Such businesses will have potential to deliver stable performance till the real value of the company is unlocked.

• Time in the market is important than timing in the market:

The legendary investor, Warren Buffet, is the most famous practitioner of value investing style. 

Warren Buffett has consistently beaten index funds for a long period of time and has created huge wealth for him and Berkshire Hathaway investors through value investing.

Any equity investment is meant for long term investors to gain a meaningful growth to their investments. Similarly, in value investing to unlock the true potential of a value stock time in the market is very important.

Share: