‘Investors can skip offer of Tata Focused Equity Fund’

Financial planners feel a stable fund management team is a prerequisite before recommending an actively managed equity mutual fund scheme.

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Investors could avoid the new fund offering (NFO) of Tata Focused Equity Fund and opt for funds in this category with a track record, according to financial planners.

“Focused funds run concentrated portfolios where stock picking is most crucial. One needs a demonstrated track record before allocating money,” says Harshvardhan Roongta, chief financial planner, Roongta Securities, a Mumbai-based financial planner. Roongta believes there is no compulsion for an investor to invest in an NFO and he should wait to see how the portfolio is constructed before putting in his money.

  • 9.88%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • 3.8 YearsTime taken to double money
  • 0.03%Annualized Return for 1 day
  • >3 years Suggested Investment Horizon
  • N.ATime taken to double money
Frequent churn in the top management as well as fund management team at Tata Mutual Fund have been a cause of worry for investors in the past. Financial planners feel a stable fund management team is a prerequisite before recommending an actively managed equity mutual fund (MF) scheme.


“In the past there have been frequent management changes at the fund house. Investors should wait for the management team to stabilise,” says Amol Joshi, founder, Plan Rupee. Tata Mutual Fund appointed Prathit Bhobe as the CEO in early 2018 and Rahul Singh as the CIO in October. Performance of Tata Mutual Fund's schemes have picked up in the last one year.

Tata Midcap Fund and Tata Large and Midcap Fund have delivered 10.37% and 14.82%, respectively, while Tata Multicap Fund has given a 13.6% return. The Sensex has gained 14.8% and the mid-cap index is down 1% in the last one year.

Tata Focused Equity Fund is the fourth NFO from Tata Asset Management in the last 15 months. It had earlier launched NFOs of Tata Balanced Advantage Fund, Tata Multicap Fund, Tata Nifty Private bank ETF. After Sebi norms on scheme categorisation, fund houses have been launching schemes to complete their product suite.
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Tata Focused Equity Fund, an open-ended equity scheme is currently open and will close on November 29.

A multi cap fund under the focused category which will be managed by Rupesh Patel, the scheme will have a concentrated portfolio of up to 30 stocks across marketcaps.
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