The outlook for tata multi asset allocation fund

October 22 , 2020 |4 Comments

Table 2 Tata Quant Fund S Asset Allocation

Instruments | Indicative allocation (% of total assets) | Risk Profile | Minimum | Maximum | High/Medium/Low Equity & Equity related instruments^ | 80 | 100 | Medium to High Debt & Money Market instruments* | 0 | 20 | Low Units issued by REITs and InvITs | 0 | 20 | Medium to High ^ The Scheme will invest at least 80% in equity and equity-related instruments selected based on a quantitative model *The Scheme shall not invest in foreign securitized debt and credit default swaps. Investment in a domestic securitized debt shall be restricted to 10%

of the net assets of the scheme The investment strategy of Tata Quant Fund would be to achieve the investment objective by constructing a portfolio of equity and equity-linked instruments. The strategy would be to construct a diversified portfolio across market The Quant model-based factor strategy is expected to provide combined benefits of active and rule-based systematic investments by minimizing the influence of human emotions and biases in decision-making, increasing discipline, and leverage the computation power of machines for operational efficiency. The investment strategy of this fund is to use proprietary in-house Quant Models for 1. Optimal

factor-based portfolio construction and 2. Identify hedge positions (partial of full) or reduce net long equity exposure to improve performance consistency. The Quant Model will use parameters that include: 1. Equity stocks selection will be predominantly from a universe of S&P BSE 200 or stocks which are part of Equity Derivative segment 2. Fundamental parameters that are also used in Factor Models like 1. Return on Equity & capital employed 2. Earnings, dividend and leverage 3. Macroeconomic parameters related to 1. GDP & inflation 2. Interest rates 3. Currency & commodity, etc. 4. Index movements The above

list is illustrative and may include additional parameters or exclude some parameters with the change in the market conditions or economic factors/situations. The portfolio will be re-balanced at a monthly frequency; however, the fund manager may alter this frequency based on the market conditions. Equity positions would have to built-up gradually and sold off gradually. This would necessarily entail having large cash position before the portfolio is fully invested and during periods when equity positions are being sold off to book profits/losses or to meet redemption needs. However, always the portfolio will adhere to the overall investment

objectives of the Scheme. The scheme may also use various derivatives and hedging products from time to portfolio and enhance unitholders' interest. Further, the scheme may invest in other schemes managed by the AMC or in the schemes of any other Mutual Funds in terms of the prevailing regulations. As per the Regulations, no investment management fees will be charged for such

Asset Allocation Of Tata Overnight Fund

Under normal circumstances, Tata Overnight Fund will allocate its assets in Debt and Money Market securities with maturity of up to 1 business day | 0%| 100% This overnight scheme from Tata Mutual Fund will not invest in derivative instruments. However, it may participate in repo in corporate debt securities.

3 Asset Allocation Of Tata Multi Asset Opportunities Fund

Tata Multi Asset Fund asset allocation As you can see from above image from Scheme Information document of Tata Multi Asset Opportunities Fund , there is new component for commodity. So between 10 to 25 % will be invested in this new asset class. Equity exposure will be minimum 65 % and rest 35% is likely to be divided in debt, commodity and REiTs. Since equity component would be around 70 % or so at most of time, please note returns would still be driven by equity segment. Remaining 30 % would be in rest three classes. In other Hybrid funds in market, all the 30

% may be in debt. In this fund however, say around 15 %(on average) is invested in commodity derivatives. So basically returns on this 15% of your money coming from commodity vs same coming from debt in a hybrid fund would be delta for

Asset Allocation For Tata Ethical Fund Direct Plan Growth

Indicative Asset Allocation And Investment Strategy Of Tata Multicap Fund

Under normal circumstances the asset allocation of Tata Multicap Fund shall be Equity & Equity related Instruments. | 65% | 100% | High Debt (including Money Market Instruments & units of debt & liquid category schemes). | 0% | 35% | Low to Medium In line with the investment allocation pattern of the scheme, Tata Multicap Fund will predominantly invest in: i) Equity and equity related instruments of domestic companies and/ or equity derivatives such as options and futures. ii) Debt and money market instruments. Categorized as a multicap fund, Tata Multicap Fund intends to invest across market capitalization i.e. large cap, mid cap and small cap

stocks. As per the schemes information document, the fund will invest predominantly in equity and equity related instruments of well researched and growth oriented companies and would follow Top Down (to track sectors) and Bottom Up approach (to select companies) towards construction of the diversified equity portfolio. As per the fund house, Tata Multicap Fund will follow a blend of both ‘value’ and ‘growth’ style of investing, depending on the market environment and opportunities. It will capture multi-baggers by staying through their market cycle and will place high importance on fundamental strengths of the company and the underlying business. Tata Multicap Fund would invest in companies

based on various criteria including sound professional management, track record, industry scenario, growth prospects, liquidity of the securities, etc. The scheme will emphasize on well managed, good quality companies with above average growth prospects. The fund may also invest in derivatives instruments such as Futures, Options or such other instruments as may be permitted under the regulations.