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Steady Performer

The fund has posted robust results by assuming moderate risk. But we still await a show stopping performance from the fund

Earlier known as Tata Twin Option, the fund has gradually gained popularity with investors. The fund's investment mandate aims to leverage upon liquid blue-chip and large cap companies. However that hasn't stopped the fund manager from dappling in mid cap companies. In fact up until January 2006 the fund did allocate a considerable portion of its funds to mid cap companies. Of late, this strategy has been dropped in favour of a higher large cap allocation. And this move has benefited the fund well, given that it was the large caps that gained the most in 2006.

The fund manager clearly adopts a buy and hold strategy. Further, the fund is amply diversified across sectors. In terms of allocation to individual stocks, the fund manager does not allocate more than 7 per cent of the fund's investible corpus to individual scrips. These characteristics have made the fund quite stable and relatively less volatile within the category of diversified equity funds. During the two recent corrections the fund has displayed an ability to contain losses and fall less than the category's average loss. At the end of the June 2006 quarter (April - June 2006), Tata Pure Equity lost (-) 11.23 per cent compared to the category's return of (-) 13.6 per cent. More recently, at the end of the March 2007 quarter (January - March 2007) the fund posted a return of (-) 4.7 per cent as against the category's (-) 6 per cent.

Overall the fund has posted robust results by assuming moderate risk. But we still await a show stopping performance from the fund.