Performance review: Tata India Consumer Fund

The consumption theme has started its recovery ever since the first unlock. This can be clearly witnessed by Nifty India Consumption Total Returns Index (TRI), which is trading at its all-time high level of 5,500. Moreover, any positive news on vaccine enhances the performance of this index even more. Having said, in the year 2021, the consumption theme might play out. In this article, we are going to review the performance of Tata India Consumer Fund, whose objective is to seek long-term capital appreciation by investing at least 80 per cent of its net assets in equity or equity-related instruments of the companies in the consumption-oriented sectors in India.

Source: Value Research

Source: Value Research

As you can see, historically, this fund has performed really well. However, since mid-year 2018, this fund began to underperform S&P BSE FMCG TRI. Even during March 2020, this fund had a deep cut compared to that of S&P BSE FMCG TRI. Having said, in recent months, this fund has been outperforming the index.

Moreover, in terms of risk, this fund has a beta of 0.7 and a standard deviation of 18.84, which is less when compared with the category average of 0.76 and 20.63, respectively. However, the risk-returns metric tells you a different story. The fund’s Sharpe ratio and Sortino ratio stands at 0.06 and 0.07, respectively, whereas the same parameters of category average stand at 0.10 and 0.12, respectively. This means that, in terms of risk-reward ratio, this fund underperforms its category. Having said, this fund has one of the lowest expense ratios.