Opportunity from volatility

India at the margin is getting rich. Economic growth prospects are stable. Yet, many investors worry about risks like politics, inflation, etc. at a time when they should be focussed and disciplined about long-term investments. This makes some investors sell stocks and get out, thus creating volatility. "Such episodes of volatility are good for value-conscious investors wanting to build quality portfolios," says Sonam Udasi, fund manager, Tata Mutual Fund. The fund house has launched a closed-end NFO in the form of Tata Value Fund Series-1. The NFO ends on July 6. A volatile phase of the market is the best time to scout for value stocks, as stocks generally tend to fall below their intrinsic value, believes the fund house. We caught up with Udasi to understand the reason, objective, strategy, and outlook of this fund with a tenure of 3 years. The AMC has Tata Equity P/E Fund. Why are you launching a value fund now? The Tata Equity P/E Fund is based on low P/E and looks at one metric. However, we realized that there is scope for looking at different metrics. We want to own the valuable at an undervalued price. As per Sebi norms, there is one product per category. We have been thinking about this fund for some tim

This article was originally published on June 28, 2018.