Tata Mutual Fund’s

Most mutual fund investment styles take a blinkered view towards

investment. It is always about investing in the fund in favor. This approach
is fraught with risk as the theme in vogue changes faster than the weather.
A right mix of themes would bring in the essence of true diversification.
Tata Mutual Fund has chosen five such themes from its stable under the
BIG 5 banner
Tata Infrastructure Fund/ Tata Pure Equity Fund/Tata Equity Opportunities Fund/ Tata Equity PE Fund/Tata Balanced Fund
 India

Will money be made from here?

 Performance at a Glance
As on February 28, 2010

Scheme Vs. Benchmark Last 1 Year Last 3 Years Last 5 Years Since Inception

Tata Life Sciences & Technology Fund 134.53% 9.77% 21.30% 20.09% (13.65%)

Tata Service Industries Fund 129.79% 5.45% N/A 17.79% (20.62%)

Tata Equity P/E Fund 121.03% 20.34% 23.97% 28.69% (24.04%)

Tata Select Equity Fund 117.09% 8.11% 19.83% 18.66% (11.41%)

Tata Equity Opportunities Fund 109.61% 10.99% 20.97% 12.58% (10.96%)

Tata Growth Fund 108.83% 7.56% 14.40% 10.06% (9.23%)

Tata Dividend Yield Fund 107.84% 17.96% 18.93% 20.61% (21.20%)

Tata Capital Builder Fund 103.03% 9.31% N/A 9.04% (9.58%)

BSE Sensex 84.78% 8.28% 19.59%  

Figures in brackets indicate benchmark returns for the corresponding period. Returns are given for growth
option except for TGF. Returns for TGF are for dividend option. All payouts during the period are assumed to be
reinvested in the units of the scheme at the then prevailing NAV & while calculating returns dividend
distribution tax is excluded. N/A - No figures available for other periods. Past performance may or may not be
sustained in future
India - What others are saying?
“...Fueled by high-octane growth, the world's “Indian Business has secured a
largest democracy is becoming a global power…niche in the world economy that can only
In ways big and small, Indians are changing the grow in importance. The question is no
world...” longer whether India can fly but how high.”
TIME - June 26, 2006 issue
The Economist, June 3-9, 2006

“India has among the

“The Indian market has two core
highest returns on foreign
advantages - an increasing
investment.”
presence of multinationals and
US Department of Commerce
an upswing in the IT exports.”
“India is among the three most Travyn Rhall,
ACNielsen
attractive FDI destinations in the
world.”
“We came to India for the
A T Kearney
FDI Confidence Index 2005 costs, stayed for the quality
and are now investing for
“India has evolved into one of
innovation.”
the world's leading
- Dan Scheinman, Cisco System Inc. as told
technology centers.” to Business Week, August 2005
Craig Barrett
Intel Corporation
“By 2032, India will be “India is a developed
among the three largest country as far as intellectual
economies in the world.” capital is concerned.”
Jack Welch
BRIC Report, Goldman Sachs
General Electric
 Real GDP growth in major
economies/regions

6.0

Source : Tata Securities Research

 Lead indicators pointing to near
term uptick
Auto Sales Trend Export Growth (YoY%)

Cement Dispatches Railway Freight Traffic Growth

Source : Morgan Stanley

 Lead indicators pointing to near
term uptick
Tourism Telecom
YoY%, 3mma Tourist arrivals Tourist Earnings (US$mn)
70%
60%
50%
40%
30%
20%
10%
0%
-10%
-20%
-30%
-40%
Jan-03 Oct-03 Jul-04 Apr-05 Jan-06 Oct-06 Aug-07 May-08 Feb-09 Nov-09

Steel Production Cargo Handled at Airports

Source : Morgan Stanley

Big stories where money will be made

 Consumption
 Outsourcing
 Infrastructure
 Financial Intermediation
 Rural
Consumption
 India - Largest Contributor to
Working Population in Coming Decade

Source : Morgan Stanley

J - Curve: The next phase

 India’s consumption will take off in

~2012 -15 as demographics result in
the magic figure of 50:40 for
dependency/ working pop, as it did for
the US in the 80s & China in the 90s
 Growth in private consumption
expected to jump from 4% in FY10 to
7% in FY11, driven by payment of
back wages to state government
employees, cut in income tax rate and
strong spending on welfare schemes.

Source : Goldman Sachs BRICs Model Projections

Outsourcing
Revenue Potential for global
outsourcing

Source : Nasscom - McKinsey

Next big pharmaceutical destination

 Cost of conducting research in India is over

50% less than cost in developed world
 End-to-end solutions across the drug-
development spectrum
 Growing clinical data management and bio-
statistics market
 Lower cost of conducting quality clinical
trials industry due to India’s large and
diverse population
Infrastructure
Infrastructure finally being built

Source : ENAM
Infrastructure Successes

Krishna Godavari – D6 Gas Basin Bangalore International Airport

Mundra Port

Delhi Metro Bandra Worli Sea Link

Work in Progress

Mumbai Metro Rail Mumbai Monorail

Common Wealth Games- Delhi 2010 Sasan Power Project

Financial Intermediation
 Trends in Savings and Investments
(% GDP)

Source : Citigroup
 Underinvestment in equities

Source : Morgan Stanley

Rural
Enhanced social/rural sector spending
cushioned the economy

Source: Edelweiss research; NHRM: National Rural Health Mission, NREGS: National Rural Employment Guarantee
Scheme, JNNURM: Jawaharlal Nehru National Urban Rural Mission, ICDS: Integrated Child Development Scheme,
APDRP: Accelerated Power Development and Reform Programme
 Dramatic surge in Govt. spend on
rural development

Source : IIFL
Risks for the Rewards

 PIIGS
 Inflation / Interest rates
 Political stability / Policy stability /
Economic stability
 Global slowdown – Exports / Fund
Inflows
 Fiscal Deficit
Growth less dependent on exports

Source: Edelweiss Research

Reviving investor confidence

Cumulative FII N et Investment

90
80
70
USD in Bn.

60
50
40
30
20
10
0

Years

Source: www.sebi.gov.in
 FDI inflows

Cumulative FDI Inflows in India

140
120
USD in Bil.

100
80
60
40
20
0

Period

Source www.dipp.nic.in
 Divestment candidates

Potential PSU IPOs

Company Estimated (INR BN)
NMDC* 141
REC* 35
Bharat Sanchar Nigam 400
Coal India 30
Ennore port 8
National aviation Co of India 12
North Eastern Electric Power Corp. 2
Numaligarh refinery 8
Rites 3
Satluj jal vidyut nigam 12
Sethusamudram corp. 2
Telecommunications consultants India 4

Source : Budget Proposals, Various websites. *Done

Beyond the Economic Recovery
The Next 3 months

 Growth trend to gain momentum

 Also, higher inflation & volatility
 Global events and news flow to influence market moves
 Inflows into Domestic Institutional Investors
 Implementation of budget proposals, reforms and
divestment
The next twelve months

 Gradual but further withdrawal of stimulus

 Revival of growth spreads to more industries
 Consumer Optimism ~ Business Optimism ~ Investment
Optimism
 Government Policies
 The great Indian PSU sale or everyone benefits from a bull
market
 Emphatic recovery of the investment cycle
 Return of a new carry trade
Beyond the next year

 Gradual repair and recovery of the global economy

 Emerging economies consistent outperformers – stable
markets / stable currencies
 The great move of savings to “emerging market risk” -
Increased globalization of financial savings deployment
 Improving performance of companies / positive fund flows /
stable politics
 The coming bull run
 10000
15000
20000

5000

0
Ma r - 90

Ma r - 91

Ma r - 92

Ma r - 93

Source : Morgan Stanley

Ma r - 94

Ma r - 95

Ma r - 96

Ma r - 97

Ma r - 98

Ma r - 99

Ma r - 00

Ma r - 01

Ma r - 02
SENSEX FORWARD P/E BANDS

Ma r - 03

Ma r - 04

Ma r - 05

Ma r - 06

Ma r - 07

Ma r - 08

Ma r - 09

Ma r - 10
10x
13x
16x
19x
22x
Tata Mutual Fund’s BIG 5
Why invest in Infrastructure Funds?

 Our economy cannot reach its GDP growth potential

without adequate infrastructure.
 Infrastructure investment is the key to achieve inclusive
growth – hence non-negotiable
 This can translate into long term growth of companies in the
infrastructure sector.
 As an investor you can participate in a growth theme in one
of the fastest growing economies
 India’s First Mutual Fund scheme predominantly investing in infrastructure sector
& related companies
 Has successfully completed more than 5 years
 Outperforming its benchmark : Rs.1 lakh invested at inception has become Rs.3.41
lakhs (Benchmark Sensex has become Rs 2.83 lakhs). Past performance may or
may not be sustained in future.
 Available with Automatic Trigger Facility
 Mix of large and mid cap stocks with growth orientation in line with the theme.
 Currently, Industrial capital goods has the highest exposure in the portfolio at
about 15% followed by banks with 14%.
 The current portfolio is largely skewed towards domestic themes with about 76%
exposure.
Performance score card
31st March, 2010

Fund Corpus : Rs. 2,286 crore NAV: Div = Rs. 22.12 Growth = Rs.33.59

Returns Tata Infrastructure Fund BSE Sensex

6 Months 6.51 2.34
1 Year 85.98 80.54
3 Years 15.10 10.26
5 Years 25.94 21.96
Since Inception 25.96 20.44

Past performance may or may not be sustained in future. Returns are

given for growth option. Date of initial allotment: December 31, 2004

Please Note: Returns<1 yr Absolute. Returns > 1Yr CAGR. Source: Mutualfundsindia.com
Why invest in an Equity
Diversified fund?

 This is a fund which should form the

core of any investment portfolio
 The Equity Diversified fund is the
classical entry point for any mutual
fund investor.
 This portfolio should be relatively
stable & give you consistent returns
 A fund with more than 11 years consistent track record
 Has gone through two market cycles of boom and bust.
 Outperforming its benchmark : Rs.1 lakh invested at inception has become
Rs.20.24 lakh, (Benchmark Sensex has become Rs 4.55 lakhs). Past performance
may or may not be sustained in future.
 Predominantly a large cap biased fund
 Currently has about 9% in mid caps
 Investment approach is a mix of top down and bottom up analysis.
 Software has the highest exposure at 11%
 Followed by Banks at 10%.
 About 77% of the portfolio is in domestic consumption.
Performance score card
31st March, 2010

Fund Corpus : Rs.568 crore NAV: Div = Rs.36.32 Growth = Rs.91.53

Returns Tata Pure Equity Fund BSE Sensex

6 Months 10.57 2.34
1 Year 86.60 80.54
3 Years 15.90 10.26
5 Years 24.45 21.96
Since Inception 28.65 13.05

Past performance may or may not be sustained in future. Returns are

given for growth option. Date of initial allotment: May 7, 1998

Please Note: Returns<1 yr Absolute. Returns > 1Yr CAGR. Source: Mutualfundsindia.com
Why invest in an Opportunity
Fund ?
 This space is suitable for investors who are
looking for stock picks & fund manager
ability to identify winners in their early stage
 Companies which look fundamentally strong
are picked up purely on the basis of merit
from across the spectrum of capitalization
(small cap/mid-cap/large cap)
 This space gives an investor a multi-cap
coverage along with bottom up stock picking
delight
 Outperforming its benchmark : Rs.1 lakh invested since inception has now become Rs.
13.91 lakh, (Benchmark Sensex has become Rs 4.91lakhs). Past performance may or may
not be sustained in future.
 A fund with 12 years consistent track record
 The fund adopts a predominantly bottom-up strategy.
 This fund is well positioned as a “stock picker’s delight”.
 Multi cap orientation and tries to seek out opportunities
 Has a track record of giving regular dividends.
 Currently has a larger exposure to mid caps resulting in good performance in the last 1yr
year
 Fairly diversified portfolio
 Software has an exposure of 16% followed by consumer non durables at 11%.
 Wipro and Infosys are the only index stocks in the top ten.
Performance score card
31st March, 2010

Fund Corpus : Rs.457 crore NAV: Div = Rs. 22.25 Growth = Rs.79.57

Returns Tata Equity Opportunities Fund BSE Sensex

6 Months 11.34 2.34
1 Year 106.60 80.54
3 Years 12.87 10.26
5 Years 22.97 21.96
Since Inception 12.89 11.32

Past performance may or may not be sustained in future. Returns are

given for growth option. Date of initial allotment: February 25, 1999
Please Note: Returns<1 yr Absolute. Returns > 1Yr CAGR. Source: Mutualfundsindia.com
Why invest in a balanced fund?

 A balanced fund helps the investor get the classical asset

allocation advantage with part of the investment in equities and
the balance in debt thereby providing insulation from equity
market volatility
 Idle for medium-term investors and investors who have some
appetite for equity, but are hesitant to invest 100% in equity
funds
 With fixed income rate on rise, the fixed income portion will
add reasonable stable return once interest rate peak out &
stabilize in the real term
 This fund has shown consistence performance for the last 14 years
 Outperforming its benchmark : Rs.1 lakh invested since inception has become
Rs. 6.02 lakhs (Benchmark Crisil Balanced Fund Index has become Rs 3.28
lakhs). Past performance may or may not be sustained in future.
 This fund invest between 65 to 75% in equities and the remaining in debt.
 The equity portion is currently run like the opportunities fund
 The debt portion is largely in money market instruments.
 Highest exposure in the scheme is in software
 Followed by consumer durables and pharmaceuticals.
 Has been recognized by several rating agencies.
Performance score card
31st March, 2010

Fund Corpus : Rs. 273rore NAV: Div = Rs.47.95 Growth = Rs.76.03

Returns Tata Balanced Fund Crisil Balanced Fund Index

6 Months 10.10 3.27
1 Year 77.74 47.31
3 Years 16.06 11.37
5 Years 20.98 15.91
Since Inception 17.51 NA

Past performance may or may not be sustained in future. Returns are

given for growth option. Date of initial allotment: October 8, 1995
Please Note: Returns<1 yr Absolute. Returns > 1Yr CAGR. Source: Mutualfundsindia.com
Value Investing

 What Location, Location, Location is to Retail, Valuation, Valuation, Valuation is

to investment
 This fund operates in the “Value Conscious” space.
 Equity markets often do not value a company properly.
 This may lead to shares of certain companies being under priced
 The essence of value investing is exploiting the difference in price between market
value of a company and the intrinsic value of the business
 In other words, finding an outstanding company at a sensible price
 When one is actively seeking “value” one is able to buy smart in any sort of market.
 Therefore this is an “evergreen” theme for all markets and all times.
 Therefore a value fund is a must as far as the investment basket is concerned in
order to complete the overall portfolio of an investor.
 This fund has shown consistent performance for the last 5 years
 The whole idea is to “buy good stocks at cheap valuations an not cheap stocks”
 Outperforming its benchmark : Rs.1 lakh invested since inception has now became Rs.4.34
lakhs, (Benchmark Sensex would have become Rs 3.66lakhs). Past performance may or may
not be sustained in future.
 At least 70% of its net assets in shares whose trailing P/E ratios are less than that of the BSE
Sensex at the time of investment.
 India’s First Mutual Fund scheme with Dividend Trigger Option
 5% Trigger has hit twice (18% dividend +15% dividend) since inception of this facility
 10% (30% dividend) Trigger hit once since October 1, 2009 since inception of this facility
 Highest exposure in the scheme is to software followed by Banks & Pharmaceutials
Performance score card
31st March, 2010

Fund Corpus : Rs.459 crore NAV: Div Trigger (5%)= Rs. 38.47 (10%)= Rs.38.90 Growth = Rs.43.90

Returns Tata Equity P/E Fund BSE Sensex

6 Months 10.38 2.34

1 Year 108.49 80.54
3 Years 21.99 10.26
5 Years 26.27 21.96
Since Inception 29.30 25.05

Past performance may or may not be sustained in future. Returns are

given for growth option. Date of initial allotment: June 29, 2004
Please Note: Returns<1 yr Absolute. Returns > 1Yr CAGR. Source: Mutualfundsindia.com
Thank You
Statutory Details
Nature and Investment objective: Tata Equity Opportunities Fund: An open
ended equity Scheme. To provide income distribution and/or medium to long term
capital gains while at all times emphasising the importance of capital appreciation.
Tata Infrastructure Fund: An open ended equity Scheme. The investment
objective is to provide income distribution and / or medium to long term capital
gains by investing predominantly in equity / equity related instrument of
companies in infrastructure sector. Tata Equity P/E Fund: An open ended Equity
Scheme. The investment objective of the Scheme is to provide reasonable and
regular income and/or possible capital appreciation to its Unitholder. Tata Pure
Equity Fund: An open ended equity scheme. To provide income distribution
and/or medium to long term capital gains while at all times emphasising the
importance of capital appreciation. Tata Balance Fund: An open-ended balanced
fund The investment objective of the scheme is to provide income distribution and
/ or medium to long term capital gains while at all times emphasising the
importance of capital appreciation.
Statutory Details

Constitution: Tata Mutual Fund has been set up as a trust under the Indian Trust Act, 1882.
Sponsors & Settlors: Tata Sons Ltd., Tata Investment Corporation Ltd. Investment Manager:
Tata Asset Management Ltd. Trustee: Tata Trustee Co. Ltd Risk Factors: Mutual Fund and
securities investments are subject to market risks and there can be no assurance and no
guarantee that the schemes will achieve their objectives. As with any investment in stocks,
shares and securities the NAV of the units under the schemes can go up or down, depending
upon the factors and forces affecting the capital market. Past performance of the previous
Schemes, the Sponsors or its Group affiliates is not indicative of and does not guarantee the
future performance of the Schemes. Tata Equity P/E Fund, Tata Pure Equity Fund and Tata
Balance fund, Tata Infrastructure Fund, Tata Equity Opportunity, are only the names of the
Schemes and do not in any manner indicate either the quality of the Schemes, its future
prospects or the returns. The sponsors are not responsible or liable for any loss resulting from
the operations of the scheme beyond the initial contribution of Rs.1 lac made by them towards
setting up the Mutual Fund. Investment in fixed income securities is subject to interest rate
risk, credit risk and liquidity risk. Pursuant to allotment of bonus units the NAV of the schemes
would fall in proportion to the bonus allotted and as a result the total value of units held by the
investor would remain same. In case of Tata Infrastructure Fund being sector specific will be
affected by risks associated with the Infrastructure Sector. Investment in foreign Securities in
subject to various risks such as currency fluctuations, restrictions on repatriation, changes in
regulations, political, economic and social instability and the prevalent tax laws of the
respective jurisdictions. For scheme specific risk factors and other details please read the
scheme information document carefully before investing. The present schemes are not
guaranteed or assured return schemes.
The returns of one year are higher largely due to market recovery. Figures in brackets indicate benchmark
returns for the corresponding period. Returns are given for growth option except for TGF. Returns for TGF are
for dividend option. All payouts during the period are assumed to be reinvested in the units of the scheme at
the then prevailing NAV & while calculating returns dividend distribution tax is excluded. N/A - No figures
available for other periods. Date of Allotment: TLSTF - Jul 02, 1999, TSIF - Apr 05, 2005, TSEF - May 24,
1996, TEPEF - Jun 29, 2004, TEOF - Feb 25, 1993 & TGF - Jul 01, 1994. * These funds were taken over by
Tata Asset Management Limited from Indian Bank Mutual Fund in the year 2001. Nature & Investment
Objective: Tata Life Sciences and Technology Fund (TLSTF): An open ended equity scheme. To provide
income distribution and/or medium to long-term capital gains while at all times emphasizing the importance of
capital appreciation. Tata Service Industries Fund (TSIF): An open ended equity scheme. To provide
income distribution and / or medium to long term capital gains by investing predominantly in equity/equity
related instrument of the companies in the service sectors. Tata Select Equity Fund (TSEF): An open ended
equity scheme. To provide income distribution and/or medium to long-term capital gains while at all times
emphasising the importance of capital. Tata Equity P/E Fund (TEPEF): An open ended equity scheme. To
provide reasonable income and / or possible capital appreciation to its Unitholder. Tata Equity
Opportunities Fund (TEOF): An open ended equity scheme. To provide income distribution and/or medium
to long term capital gains while at all times emphasising the importance of capital appreciation. Tata Growth
Fund (TGF): An open ended equity scheme. To provide income distribution and / or medium to long term
capital gains. Tata Capital Builder Fund (TCBF): An open ended equity scheme The investment objective of
the scheme is to generate capital appreciation by investing predominantly in equity and equity related
instruments of companies across large, mid and small market capitalization. Tata Dividend Yield Fund
(TDYF) : An open ended equity scheme. The investment objective of the scheme is to provide income
distribution and / or medium to long term
capital gains by investing predominantly in high dividend yield stocks. Applicable Loads: Entry Load
(including SIP): Nil. Exit Load (Other than in SIP): 1% of the applicable NAV if redeemed on or before
expiry of 365 days from the date of allotment. Exit Load for SIP: 1%^ of the applicable NAV if redeemed on
or before expiry of 24 months from the date of allotment. ^ The load structure would be applicable for SIP
amount upto Rs 50 Lakhs per installment. For SIP installment above Rs 50 Lakhs the load structure for
investment other than SIP will be applicable.
Statutory Details: Constitution: Tata Mutual Fund (TMF) has been set up as a Trust under the Indian Trust Act,
1882. Sponsors: Tata Sons Ltd.& Tata Investment Corporation Ltd. Trustee: Tata Trustee Company Ltd.,
Investment Manager: Tata Asset Management Ltd.
Risk Factors • All investments in Mutual Fund & securities are subject to market risks & the NAV of
the units issued under the schemes can go up or down depending on the factors & forces affecting the
capital markets • Mutual Fund & securities investments are subject to market risks & there can be no
assurance & no guarantee that the objectives of the scheme will be achieved • Past performance of the
previous scheme, the Sponsors or its group affiliates is not indicative of & does not guarantee the future
performance of the schemes • The above are only the names of the schemes & does not in any manner
indicate either the quality of the scheme, it’s future prospects or the returns • The Sponsors are not
responsible or liable for any loss resulting from the operations of the Mutual Fund beyond the contribution of
an amount of Rs.1 lac made by them towards setting up of the Mutual Fund. Investments in debt securities are
subject to interest rate risk, credit risk & liquidity risk • The present schemes are not guaranteed or assured
return schemes • Investment in mutual fund units involves investment risk such as trading volumes, settlement
risk, liquidity risk, default risk including the possible loss of capital • Kindly refer Scheme Information
Document (SID), Statement of Additional Information (SAI) & Key Information Memorandum (KIM)
of the scheme for applicable loads. For scheme specific risk factors & other details please read the
SID/SAI/KIM of the scheme carefully before investing.
Disclaimer: The views expressed in this presentation are of Tata Asset Management Ltd. and are in no way
trying to predict the markets or to time them. The views expressed in this presentation may not reflect in the
scheme portfolios of Tata Mutual Fund. This presentation has been prepared using information believed to be
accurate at the time of its use. You are advised not to take any investment decision based on information given
in this presentation
 Thank You

Tata Mutual Fund

Fort House; 221, Dr. D. N. Road; Mumbai 400001
www.tatamutualfund.com