Tata Pure Equity Fund - Invest Online

Earlier known as Tata Twin Option (Equity), the scheme aims at medium to long term capital growth, with 100 per cent investments in the equity of large-cap, liquid blue-chip companies.

The fund has been rewarding investors with consistent returns for a long period now. It has outperformed its category in 14 out of the 16 years of its rating history. Its average twelve-month VR rating is four. It has moved up on the rating scale lately as the average VR rating since its inception is 3.69.

The scheme define large cap stocks as top 125 stocks by market capitalization, and it does not add mid cap stocks. Within the investment universe, the scheme focuses on stocks with good earnings growth and good capital efficiency. Growth at Reasonable Prices (GARP) is the predominant investment strategy employed by the fund. 'Investment in companies that combine growth and capital efficiency ensures that the rewards of growth accrue to existing investors as such companies do not raise capital from investors frequently,' says the fund manager.

The scheme divides the investible universe into two broad sets: higher quality businesses and tactical opportunity set. 'Within these two sets, our bias is towards companies in the first set,' says the fund manager. The fund manager believes that the economic growth will pick up over the medium term, and have made higher allocation to sectors like cement and capital goods, including sectors such as defence and transportation, auto and auto ancillaries, consumer discretionary stocks and pharmaceuticals that are likely to benefit from it. He is neutral on banking and IT, underweight on oil and gas.