India is home to more than 1.35 billion people. Besides other sectors, the consumer sector is one of the fastest growing areas of the economy. The large population of the country plays a pivotal role in the growth of this sector, since the demand of consumables is rarely affected by economic or political changes. Hence, leveraging on the FMCG sector is one of the best decisions that you could make for yourself, which you can do easily throughTATA India Consumer Fund. This fund has a keen focus on the consumer segment, and hence, can be used to create wealth with proper financial planning. Some Basic Facts about TATA India Consumer Fund TATA India Consumer Fund – Regular Plan (G) is one of the many top-performing funds owned by TATA Mutual Fund – one of the largest AMCs in India. The fund was started recently in December, 2015, and has since helped numerous investors in achieving their financial goals. Also, it has created one of the largest pools of assets in the thematic segment, which was worth ₹1,388 crore on 31st May 2019. The basic objective of the fund is to add more capital to the market, by leveraging on the growing FMCG sector of the Indian economy. It uses the investors’ capital as the fuel to make large investments, and thus, pins the wealth in a diversified portfolio for a long-term wealth creation. The Facts about Portfolio Construction TATA India Consumer Fund (G) is a pure equity fund, where approximately 95% of its assets are invested in equity and equity-oriented instruments. Since equities tend to be more volatile than debt funds, it is important to keep the risks at an acceptably low level. And, to achieve that, TATA India Consumer Fund employs its capital in a diversified portfolio comprising of stocks such as giant & large caps, midcaps, and small caps to the tune of 59%, 21.00% and 35%, respectively. Also, there is a slight exposure to small cap stocks, which are present to the tune of 7.07%. However, it shall be noted that this proportion of stocks is not static and keeps on changing with market circumstances and fund managers’ decisions. The Concentration & Valuation of Socks While managing a fund, the fund managers have to be very particular about the number of stocks they are adding to the fund, and also their respective industries. Adding too many stocks to the portfolio doesn’t guarantee success. In fact, it creates a haphazard situation which may not be possible for every fund manager to handle properly. To avoid unwanted breakdowns in the performance, the fund managers at TATA India Consumer Fund (Growth) have kept numbered stocks in the portfolio, which are currently 27. The top 10 stocks carry approximately 60% of the total wealth of the portfolio, whereas almost 37% of the wealth is occupied by the next 5 best stocks. Besides consumer industry, services and automobile industries are the major areas of investment for the fund. These industries together hold nearly 82% of the total assets of the fund, keeping the earning process in motion. The Performance Report As an investor, it is your duty and right to get informed about the past performance of a fund. If you are making blind investments without any proper information, then you are actually doing more harm than good to yourself. And if you are planning to go for sector based investing, then you should be keener about the past numbers. TATA India Consumer Fund (G) has been ranked number 1 in the thematic fund category on the basis of its past performance. Records have revealed that in the last three years alone, the fund was able to spew returns worth 17.16%, averaged annually. This is a remarkable yield which has even beaten the category performance that stood at 11.22%. The Final Word Hence, if you are anxious to find a proper solution for your financial aspirations, then you must go for TATA India Consumer Fund (Growth).
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