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Great Brand Equity

Tata Mutual Fund has used its brand name to full effect

Being a part of the Tata group, the fund has the backing of a very trusted brand name with strong retail connect. While the current CEO has done an excellent job in leveraging the Tata brand name to AMC's advantage, it is ironic that this was just not capitalised on at the start.

Incorporated in 1995, Tata Mutual Fund remained an 'also-ran' fund house for around eight years. Till March 2003, it had a little over Rs 1,000 crore in assets and 19 AMCs were ahead of it. But soon after that the equation changed.

It was the fastest growing fund house in 2004 and 2005. During these two years, it aggressively launched six equity funds, two debt funds and one MIP. The fund house as of now stands at No. 8 in terms of asset size. This fund house has a lot to offer by way of choice. And, it also has a number of well performing schemes. Tata Pure Equity, Tata Equity PE and Tata Infrastructure are all good funds. It also has quite a few good debt funds.

The funds of Tata AMC are known to have bloated stock portfolios. But this intense diversification has not hindered the performance. Overall, it has been a stable player offering decent returns.

The fund had gone overboard in innovating with fund ideas. And none of them have really turned out to be blockbusters.

The one theme that really did work and which has turned out to be a source of pride for the AMC has been the infrastructure one. The fund - Tata Infrastructure, was launched in December 2004. It was one of the best performing funds in 2006. But at that time, the infrastructure theme was rewarding all investors and thematic funds from other fund houses did equally well.

 Leveraging on that success, the AMC stretched the idea and launched Tata Indo Global Infrastructure in 2007 and Tata Growing Economies Infrastructure Plan A this year.

Explanation of the data tables and graphs