Tata Focused Equity Fund

Review Date: 25-03-2025

Beginning of Analysis

Tata Focused Equity Fund is the 16th ranked fund in the Focused Fund category. The category has total 23 funds. The Tata Focused Equity Fund has shown a poor past performence in Focused Fund category. The fund has a Jensen Alpha of 0.58% which is lower than the category average of 1.2%, showing poor performance. The fund has a Sharpe Ratio of 0.4 which is lower than the category average of 0.42.
The past performance of the Tata Focused Equity Fund may or may not be sustained in the future. The review is not investment advice nor is it a recommendation to buy or sell funds.
Focused Mutual Funds are ideal for aggressive investors seeking high returns by investing in a concentrated portfolio of high-conviction stocks. These funds typically hold 20–30 stocks, allowing the fund manager to take significant positions in select companies. While they offer the potential for significant capital appreciation, they also carry higher risks due to their concentrated nature. Investors should have a long-term investment horizon and a high risk tolerance to invest in Focused Funds. Additionally, the success of these funds depends heavily on the fund manager's skill in identifying and managing high-conviction stocks.

Tata Focused Equity Fund Return Analysis

The fund has given a return of 2.26%, -7.99 and -14.28 in last one, three and six months respectively. In the same period the category average return was 4.28%, -5.45% and -11.54% respectively.

The fund has given a SIP return of -6.1% in last one year. In the same period the category average SIP return was -2.72%. The fund has SIP return of 15.63% in last three years whereas category average SIP return is 16.62%. The category average SIP return is 18.11% and the fund has given a SIP return of 18.79% in last five years.

The benchmark Nifty 500 Total Return Index has given a return of 8.25%, 14.66% and 28.77% in last one, three and five years respectively.

Tata Focused Equity Fund Risk Analysis

The fund has a standard deviation of 14.6 and semi deviation of 10.38. The category average standard deviation is 14.21 and semi deviation is 10.1. The fund has a Value at Risk (VaR) of -20.62 and a maximum drawdown of -17.23. The category average VaR is -18.41 and the maximum drawdown is -16.71. The fund has a beta of 0.98 which shows that fund is less volatile than the benchmark.

Standard deviation measures the fund's return volatility and Semi deviation focuses on downside volatility. Value at Risk (VaR) is a measure of the risk of investments. Maximum Drawdown is the maximum loss from a peak to a trough of a portfolio. Beta measures the volatility of the fund compared to the benchmark. A beta of 1 indicates that the fund will move in line with the benchmark. A beta of more than 1 indicates that the fund will be more volatile than the benchmark and vice versa.