TTSF_1 Pager July 2013.cdr - Tata Mutual Fund

TAX SAVING FUND(An Open-ended Equity Linked Saving Scheme(ELSS) for residents with a lock-in period of 3 years)Aims to achieve the right blendof Growth and Tax SavingThis product is suitable for investors who are seeking*:• Long Term Capital Appreciation.• Investment predominantly in equity & equity related securities of large cap companies.• The scheme is classified as High Risk(BROWN). Investors understand that their principal will be at high risk.*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.Note: Risk may be represented as:(BROWN) investors understand thattheir principal will be at high risk.(YELLOW) investors understand thattheir principal will be at medium risk.(BLUE) investors understand that theirprincipal will be at low risk.Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

PRODUCT DETAILSInception : Mar 31, 1996Benchmark Index: S&P BSE SensexPresent Investment Style : Diversified - Value + Growth –No Market cap biasLock In & Tax Savings : Lock in of 3 Years and tax savings u/s 80C of theIncome Tax Act 1961Entry Load: NILExit Load: Nil (compulsory lock-in for three years)INVESTMENT PHILOSOPHYTata Tax Saving Fund is a diversified equity fund which intends to generate long term capitalappreciation by investing in equity and equity related instruments. The Fund also providestax benefit by way of deduction under section 80C of Income Tax Act, 1961. The Fundhence, offers a combination of tax saving along with benefits of potential capitalappreciation opportunities over 3 years or moreThe portfolio strategy focuses on well managed, high quality companies with aboveaverage growth prospects that can be purchased at a reasonable price. Typically thesecompanies will be highly competitive, with a large and growing market share.ABOUT EQUITY LINKED SAVING SCHEMELowest Lock-in of 3yrs• Equity Linked Saving Scheme (ELSS) offer lowest lock-in period of 3yrs whencompared with other tax savings investment options currently available.No Capital gains Tax• ELSS have a lock-in period of 3 yrs and hence returns generated on the ELSS attractszero capital gains tax, as long term capital gains from equity investments is tax free inthe hands of investors. Also dividends if any, are also exempt from tax in the hands ofinvestorPotential for higher returns• Predominantly invests in equity & equity related instruments which have potential forhigher returns though at a higher risk.WHY TATA TAX SAVING FUND?• The 3yr lock-in period allows the Fund Manager to take long term call on stocks notwithstanding short term volatility in the market for exploiting true wealth creationpotential of stocks• Blend of both 'value' and 'growth' style of investing in one portfolio across marketcapitalization segments• Focus on well managed, good quality, fundamentally strong companies with aboveaverage growth prospectshigh frequency economic activity indicators such as PMIs, IIP, car sales, power, cement andsteel volume growth etc have started showing improving trends. Thus, the economicgrowth and earnings could see a good pick up over the next few years. Despite the recentsharp run, as per consensus estimate Sensex valuations are reasonable at about 16x FY15estimated earnings, which is near long term average multiples. While geopolitical eventsand risk on risk off trends in global markets can cause near term volatility, they look unlikelyto change the basic course of Indian economy and markets. Therefore, Indian marketsremain attractive over the next three to five years.Staggered lump sum investments added with SIP can be one of the most effective ways ofinvesting given the current stage of markets with a 3 to 5 year investment horizon.Tata Tax Saving Fund enables investors to take advantage of deductions u/s 80 C along withthe potential benefits of long term investments in equities which form a fundamental prerequisitefor investments in equities.CURRENT PORTFOLIO STRATEGY• The portfolio is aligned to current market dynamics and focuses on stocks withstrong fundamentals and high earnings visibility• The investment is spread across 22 industries with top 3 industries contributing~40%• The top 3 industries in the portfolio are Software, Banks and Pharma• Scheme has diversified portfolio of 49 stocks from 22 industries• Top 10 stocks form ~41% of the portfolio• Around 98% of the total scheme corpus is invested in stocks and remaining in cashand cash equivalentTOP 10 HOLDINGS (As on 31st July, 2014)Issuer Name% to NAVICICI Bank Ltd. 5.97Tata Consultancy Services Ltd. 4.99HDFC Bank Ltd. 4.87Infosys Ltd. 4.18Reliance Industries Ltd. 3.90Bharat Forge Ltd. 3.85ITC Ltd. 3.81HCL Technologies Ltd 3.80HDFC Ltd. 3.09Gujarat Mineral Dev Corp Ltd. 2.85Total 41.31TOP 10 SECTOR ALLOCATION (As on 31st July, 2014)WHO SHOULD INVEST & WHY• Investors with moderate to aggressive risk profile with a investment horizon of 3yrs ormore• Investors seeking deduction of up to Rs.1.5 lacs allowed under section 80C ofIncome Tax Act, 1961• Lowest lock in period of 3yrs amongst all the different tax savings investmentavenues under section 80C of Income Tax Act, 1961• Over 18 Years of performance track record across multiple bull & bear cyclesMARKET SCENARIOMacro overview:We continue to remain positive on the outlook of Indian equity markets despite the strongrally in the last few months. The key macro economic problems facing the Indian economyviz. CAD, fiscal deficit and high inflation are getting addressed. Economic growth isbottoming out and with a decisive election mandate; the new government can follow progrowthpolicies with much more freedom than any other government in the recent past. TheDistributed by:DISCLAIMERSMS: ‘ TMF’ to 57575 Website: www.tatamutualfund.comCall us at: 1800-209-0101 (Lines open on Sundays also)The present strategy of the fund is based on the current market conditions as explained above. The Fund Manager may change the strategy appropriately to reflect changes in marketoutlook/changed guidelines by regulatory authorities or any such event which may have an impact on the performance of the fund without prior intimation to investors. As per the terms of theScheme Information document, there is no restriction on investment in any sectors. The fund manager may invest in sectors/instruments which are currently not reflecting in the portfolio.Given the above mentioned scenario investors with a horizon 3 Yrs or more, may consider investing in the scheme. However investors may note that there can be no assurance & no guarantee thatthe objectives of the scheme will be achieved.Internal views, estimates, opinions of Tata Asset Management Ltd. expressed herein may or may not materialize. These views, estimates and opinions alone are not sufficient and should not be usedfor the development or implementation of an investment strategy. The portfolio of the scheme is subject to changes within the provisions of the Scheme Information Document (SID) of the scheme.Please refer to the SID for asset allocation, investment strategy and scheme specific risk factors. Forward looking statements are based on internal views and assumptions and subject to known andunknown risks and uncertainties which could materially impact or differ the actual results or performance from those expressed or implied under those statements.