November 6, 2024
mayank
Review of Tata India Innovation Fund NFO @ sahifund.com by Paresh Gordhandas, C.A., Research Analyst.
[ A ] Benchmark Performance of NIFTY 50 TRI
Statistics
| Index Returns (%) # |
QTD | YTD | 1 Year | 5 Years | Since Inception |
| Price Return | -6.17 | 11.38 | 26.87 | 15.30 | 11.61 |
| Total Return | -6.07 | 12.64 | 28.39 | 16.63 | |
| Net Total Return | -7.02 | 11.15 | 26.64 | 15.95 |
| Statistics ## | 1 Year | 5 Years | Since Inception |
| Std. Deviation * | 13.42 | 18.95 | 22.87 |
| Beta (NIFTY 50) | 1.00 | 1.00 | 1.00 |
| Correlation (NIFTY 50) | 1.00 | 1.00 | 1.00 |
Fundamentals
| P/E | P/B | Dividend Yield |
| 22.58 | 3.63 | 1.27 |
Top constituents by weightage
| Company’s Name | Weight(%) |
| HDFC Bank Ltd. | 12.11 |
| ICICI Bank Ltd. | 8.38 |
| Reliance Industries Ltd. | 8.31 |
| Infosys Ltd. | 5.82 |
| ITC Ltd. | 4.18 |
| Bharti Airtel Ltd. | 3.98 |
| Larsen & Toubro Ltd. | 3.92 |
| Tata Consultancy Services Ltd. | 3.73 |
| Axis Bank Ltd. | 3.04 |
| State Bank of India | 2.90 |
Note on Benchmark Performance:
The NFO intends to invest in the companies which have focus on Innovations, whereas its benchmark index is Nifty 50, which comprises of the companies engaged in age-old businesses and the index has very small component of new age or innovation companies. So, the performance of the benchmark index may not fully reflect the true potential of this NFO.
[ B ] Performance Review of the Fund Managers of this NFO
Past Performance of Kapil Malhotra
| Fund | Tata India Innovation Fund | It’s Benchmark |
| 1 Year | — | — |
| 3 Year | — | — |
| 5 Year | — | — |
| 7 Year | — | — |
| 10 Year | — | — |
As on 6-11-2024
Past Performance of Meeta Shetty
| Fund | Tata Large & Mid Cap Fund | It’s Benchmark | Tata Focused Equity Fund | It’s Benchmark |
| 1 Year | 32.44 | 32.56 | 34.60 | 33.89 |
| 3 Year | 16.91 | 14.12 | 15.35 | 14.91 |
| 5 Year | 19.92 | 18.52 | — | — |
| 7 Year | 15.34 | 14.64 | — | — |
| 10 Year | 14.66 | 13.76 | — | — |
As on 6-11-2024
Note on Fund Managers’ performance:
Whenever we plan to invest in any NFO, we have to estimate the future performance and potential of the NFO. and such future performance depends on two aspects a) the performance of the benchmark index and 2) ability of the fund managers to develop a truly profitable portfolio. In order to estimate the future performance of the fund managers, we have to analyze the past performance of the fund managers.
In this NFO, the past performance of both the fund managers are okay and not so impressive. We donot have past track record of Kapil Malhotra whereas the second fund manager, Meeta Shetty could garner somewhat higher returns as compared to the benchmark index, in the schemes selected on random basis.
[ C ] Conclusion
Considering above two aspects for this NFO, we do not recommend large investment in this NFO. If these fund managers succeed in creating truly profitable portfolio of innovative companies, then the fund has strong potential to be multi bagger. So, at this NFO juncture, we suggest making small investment, check the portfolio created by them and then take decision about further investment.