Tata Pure Equity Fund outperforms Sensex

Returns from a Systematic Investment Plan in Tata Pure Equity fund, one of the earliest equity schemes to be launched by Tata Mutual Fund, has outperformed the Sensex returns.

Figures show that an SIP with the scheme with a minimum amount of Rs 1,000 invested each month would have yielded a return of over 34 per cent since the fund was launched in 1998 while the Sensex has returned 16.24 per cent as on March 31, 2005.

Over a one year period, the scheme has returned 58 per cent against the index's 43 per cent, close to 63 per cent in the last three years (37.12 per cent) and over the last five years the returns by the scheme have been over 38 per cent compared to the Sensex return of 22.16 per cent.

Ved Prakash Chaturvedi, chief executive officer of Tata MF said that it is one of the conservative schemes in the equity space and despite its rather non-aggressive stance, it has managed to outperform the benchmark indices.

Among its peers are schemes such as Reliance Growth Fund, Reliance Vision Fund, HSBC Equity Fund, all of which have fairly aggressive portfolios.

Chaturvedi pointed out that while other schemes may be performing better than Tata Pure Equity Fund, it has the advantage of not being very volatile.

In the last one month, as on April 12, 2005, the scheme has delivered negative returns of 2.99 per cent against the average of (-) 4.38 per cent for its peer group.

The compounded annualised growth for the scheme in the last one year has been 27.20 per ent against the average of 24.18 per cent.

Since inception, the scheme has returned close to 32 per cent against the industry average of 29 per cent. Further, the scheme has declared dividends totalling to 231 per cent.

The scheme has a corpus of Rs 190-odd crore.