MULTICAP FUND

(An open ended equity scheme investing

across large cap, mid cap, small cap stocks)

(SCHEME CODE TATA/O/E /MCF/22/10/0053)

NFO Opens: 16th January 2023 | NFO Closes: 30th January 2023
This product is suitable for investors who are Risk-O-Meter of
Scheme Risk-O-Meter
seeking*: Nifty 500 Multicap 50:25:25 TRI

• To Generate Long Term Capital Appreciation

• An open ended equity scheme investing across
large cap, mid cap and small cap stocks

*Investors should consult their financial advisors

if in doubt about whether the product is suitable
for them

(It may be noted that risk-o-meter specified above is based on internal assessment. The same shall be updated in accordance with
provisions of SEBI circular dated October 5, 2020 on Product labelling in mutual fund schemes on ongoing basis)

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Its hard to Imagine...

Carrying a calculator,
A family with just adults? A world with only reds?
camera everyday?

Looking for masalas in different Going to multiple markets to buy

Searching for tools on the go?
boxes while cooking? monthly groceries

2
Some things are just…

3
Combinations all around us

A cell phone brings together Each generation adds a new The three base colours combine
multiple devices layer to a family to create the world around us

A Masala Box makes Supermarkets are one A swiss knife acts as multiple
cooking easier stop shops tools in one

4
“ A Whole is Greater Than
the Sum of Its Parts
”
– Aristotle

5
The Bronze Age: The Big Leap For Humans
3300 BC to 1200 BC

Hardness of Metals
(On Mohs Scale of 1 to 10)
Softest Hardest

1 1.5 3 10

Tin Copper

WHAT IS THE HARDNESS OF A COMBINATION TIN & COPPER?

6
The Bronze Age: The Big Leap For Humans
3300 BC to 1200 BC

Hardness of Metals
(On Mohs Scale of 1 to 10)
Softest Hardest

1 1.5 3 4.5 6 10
1.5 + 3

Tin Copper Bronze

Two soft metals combined to make a metal hard

enough to make tools and weapons
7
 Value or
Growth?
Which Or GARP?
Market Cap?

Which Top Down? THERE ARE SO MANY

Sectors? POSSIBLE COMBINATIONS
FOR INVESTMENTS
Which
Themes? Bottom
Up?

8
Winners Don't Always Repeat..

CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21
Best

44% 6% 70% 10% 5% 57% 1% 10% 25% 62%

Middle

38% -3% 60% 8% 4% 54% -13% 0% 24% 47%

Worst

31% -8% 33% –2% 0% 31% -27% -8% 15% 25%

Nifty 100 Nifty Midcap 150 Nifty Smallcap 250

And Neither Do Losers..

Source: NSE 9
If You Picked The Previous Winning Segment Each Year?

CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21

44% 6% 70% 10% 5% 57% 1% 10% 25% 62%

38% -3% 60% 8% 4% 54% -13% 0% 24% 47%

31% -8% 33% –2% 0% 31% -27% -8% 15% 25%

Nifty 100 Nifty Midcap 150 Nifty Smallcap 250

Your selection would have been the top performer thrice over ten years
Your selection would have been the worst performer four times over ten years
Value of investment of Rs 100

400
331

300
220 205
161 178
200 142 143
129
100 97
100

0
CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21

Best performing
Source: NSE 10
If You Picked The Previous Losing Segment Each Year?

CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21

44% 6% 70% 10% 5% 57% 1% 10% 25% 62%

38% -3% 60% 8% 4% 54% -13% 0% 24% 47%

31% -8% 33% –2% 0% 31% -27% -8% 15% 25%

Nifty 100 Nifty Midcap 150 Nifty Smallcap 250

Your selection would have been the top performer five times over ten years
Your selection would have been the worst performer thrice over ten years
Value of investment of Rs 100
500
417
400 333
287 290
300 266

181 176 183

200
106
100
100

0
CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21

worst performing
Source: NSE 11
“A Whole is Greater Than the Sum of Its Parts”

CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21

44% 6% 70% 10% 5% 57% 1% 10% 25% 62%

38% 0% 60% 8% 4% 54% –12% 2% 24% 47%

37% -3% 50% 5% 3% 47% -13% 0% 21% 42%

31% -8% 33% -2% 0% 31% -27% -8% 15% 25%

Nifty 100 Nifty Midcap 150 Nifty Smallcap 250 Composite

A composite would have been the worst or top performer zero times over ten years
But your investment journey would have been much smoother

Composite constructed in a 40:35:25 ratio of Largecaps:Midcaps:Smallcaps | For illustration purposes only|

The portfolio may or may not be managed in a similar manner | Source: NSE 12
A Combination gives you a smoother path

Value of investment of Rs 100

450 417
400

350 333 362

287 290
300 266 331

250 256
237
200 181 176 183 208 212
220
205
150 157 162 178
150
100 106 161
142 143
100 100 100 129
100 97
50

0
CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21

Best performing worst performing Composite

A composite combines the best of each segment, resulting in potentially a more stable portfolio

Composite constructed in a 40:35:25 ratio of Largecaps:Midcaps:Smallcaps | For illustration purposes only|

The portfolio may or may not be managed in a similar manner | Source: NSE 13
WHY INVEST IN JUST ONE?

Large, Mid & Small Caps

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Each Market Cap Contains Something Different
Description

LARGE CAPS MID CAPS SMALL CAPS

1st to 100th 101st to 250th 251st onwards

by Market Cap by Market Cap by Market Cap

Mature businesses with Emerging companies in High

proven track record growth phase Niche businesses

Less Volatile compared to Scalable Business Models Potential multi-baggers

Mid and Small Caps

Source: NSE 15
Each Market Cap has Different Characteristics
Key Characteristics

Liquidity Sector Exposure Valuation

Higher liquidity in a segment can

provide stability to the portfolio Sector allocation is varied Value and Growth opportunities
while lower liquidity provides alpha across Market Caps are present across Market Caps
generation opportunities

Rs Lakh Cr KEY SECTORS Trailing

Index P/B
P/E
Total Free Average Financial Services, IT, Oil
Index NIFTY 100
Float Free Float & Gas, FMCG NIFTY 100 22.07 4.38
Market Market
Cap Cap Financial Services,
Capital Goods, NIFTY MIDCAP 150 24.45 3.32
NIFTY MIDCAP 150
Healthcare, Automobile &
NIFTY 100 180.35 1.80
Auto Components NIFTY SMALLCAP 250 19.05 2.99
NIFTY MIDCAP 150 42.39 0.28 Financial Services,
NIFTY SMALLCAP 250 Capital Goods,
NIFTY SMALLCAP 250 21.24 0.08 Healthcare, Chemicals

Source: NSE 16
Each Market Cap Adds Something Different
Weight allocation to sectors is different for each market cap

NIFTY 100

NIFTY MIDCAP 150

NIFTY SMALLCAP 250

0 25 50 75 100

Automobile and Auto Components Capital Goods Chemicals Construction Construction Materials Consumer Durables

Consumer Services Diversified Fast Moving Consumer Goods Financial Services Forest Materials

Healthcare Information Technology Media, Entertainment & Publication Oil, Gas & Consumable Fuels Power

Realty Services Metals & Mining Telecommunication Textiles

Source: NSE 17
Each Market Cap Adds Something Unique
Unique basic industries across Market Caps
Nifty 100
• Diversified FMCG
• Power - Transmission
• Trading - Minerals
• Coal
• Diversified Metals
Source: NSE
Nifty Midcap 150
• Castings & Forgings
• Other Beverages
• Commercial Vehicles
• Edible Oil
• Diesel Engines
• Fastener
• Explosives
• Airport & Airport services
• Industrial Electronics
• Healthcare Research,
Analytics & Technology
• Zinc
• Tractors
• Industrial Gases
• Dairy Products
Nifty Smallcap 250
• Electrodes
• Copper
• Sanitary Ware
• Petrochemicals
• Refractories
• Education
• Carbon Black
• Digital Entertainment
• Pharmacy Retail
• Dyes And Pigments
• Industrial Minerals
• Trading – Gas
• Sugar
• Shipping
• Packaging
• Lubricants
• Industrial Machinery
• Household Products
• Civil Construction
… And More
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Each Market Cap has Grown Multifold
Free Float Market Capitalisation of 1st stock in each segment (in Lakh Crores)

Mcap of 1st Stock Mcap of 101st Stock Mcap of 250th Stock

2022 47.64 2022 16.79

2022 1,782.38
2021 37.82 2021 11.25
2021 1,315.94

2020 706.04 2020 21.19 2020 5.45

2019 864.12 2019 29.03 2019 8.73

2018 559.16 2018 28.75 2018 9.32

2017 479.16 2017 24.08 2017 6.86

2016 496.60 2016 17.49 2016 4.61

2015 500.24 2015 19.06 2015 4.65

2014 417.82 2014 11.41 2014 2.75

2013 308.41 2013 10.55 2013 2.36

2012 245.80 2012 10.28 2012 2.55

7.3X 4.6X 6.6X

Source: Capitalline 19
Large Mid Small Multi
Cap Cap Cap
Cap

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A Combination helps reduce decisions

Desk to Desktop

1981 NOW

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INTRODUCING

MULTICAP FUND
(An open ended equity scheme investing
across large cap, mid cap, small cap stocks)

22
TATA MULTICAP FUND

Multi Multi
Sector
Cap Style
Agnostic

Multi
GARP
Theme

COMBINE THE BEST IDEAS ACROSS SEGMENTS 23

MULTI – STYLE INVESTING
FOR AN ALL WEATHER PORTFOLIO

Earnings Stability Well rounded investment strategy

Combination of investment ideas across earnings cycle

Earnings Upgrades Portfolio construct flexible in terms of market cap

Each segment plays a role in optimizing risk-return trade-off

Earnings Turnaround Diversified portfolio

Internally developed strategy subject to change with change in market conditions 24

MULTI – STYLE INVESTING
EARNINGS STABILITY

Earnings Stability
Earnings Stability Segment Characteristics

Purpose Aim to deliver consistent profits and returns

Earnings Upgrades
Portfolio Construction Focus on high liquidity stocks

Selection Criteria Relatively predictable, sustainable, Low risk business model

Earnings Turnaround

Internally developed strategy subject to change with change in market conditions 25

MULTI – STYLE INVESTING
EARNINGS UPGRADE

Earnings Stability
Earnings Upgrades Segment Characteristics

Aim to enhance returns through positive earning surprises and

Purpose
valuation re-rating
Earnings Upgrades
Visible corrective actions by the company or in industry structure

Selection Criteria
Companies in which profit growth is expected to deliver positive
surprise in a ~12-18 month period.​
Earnings Turnaround

Internally developed strategy subject to change with change in market conditions 26

MULTI – STYLE INVESTING
EARNINGS TURNAROUND

Earnings Stability Earnings Turnaround Segment Characteristics

Purpose Potentially generate disproportionate returns but at higher risk

Cases where companies or sectors have gone through challenges

Earnings Upgrades and dislocation leading to depressed earnings and valuation
Selection Criteria
Downturn could be company-specific (leverage, capex) or industry
level cyclical

• Correction in the industry scenario

Earnings Turnaround Turnaround Potential
• Company level management change or shift in strategy

Internally developed strategy subject to change with change in market conditions 27

Growth at Reasonable Price

Value with triggers

• At multi-year valuation discount
• In early stages of improving outlook

DEEP VALUE GROWTH AT ANY PRICE

Our
Valuation is right, timing Philosophy Typically associated with
may or may not be Upgrade cycle Thematic high perceived quality
• Upgrade cycle vs. • Change in sector
consensus dynamics
• Valuation re-rating + • Macro tailwinds
earning upgrades

Internally developed strategy subject to change with change in market conditions 28

Fund Details

Scheme Name TATA MULTICAP FUND

NFO Date 16th January 2023 to 30th January 2023

The investment objective of the scheme is to generate long-term capital appreciation from a portfolio of equity and
Investment Objective equity related securities across market capitalization. However, there is no assurance or guarantee that the
investment objective of the Scheme will be achieved. The scheme does not assure or guarantee any returns.

Type Of Scheme An open ended equity scheme investing across large cap, mid cap, small cap stocks
Rahul Singh (Equity Portfolio), Tejas Gutka (Equity Co-Fund Manager), Murthy Nagarajan (Debt Portfolio) &
Fund Manager
Arvindkumar Kumaresan Chetty (Overseas Portfolio)
Benchmark Nifty 500 Multicap 50:25:25 TRI

Min. Investment Amount (During NFO) Rs. 5,000/- and in multiple of Re.1/- thereafter

Entry Load: N.A.

Exit Load: Redemption/Switch-out/SWP/STP on or before expiry of 365 days from the date of allotment: If the
withdrawal amount or switched out amount is not more than 12% of the original cost of investment-NIL
Load Structure
Redemption/Switch-out/SWP/STP on or before expiry of 365 days from the date of allotment: If the withdrawal
amount or switched out amount is more than 12% of the original cost of investment-1%
Redemption/Switch-out/SWP/STP after expiry of 365 days from the date of allotment-NIL

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TATA MULTICAP FUND

Fund Benchmark
This product is suitable for investors who are seeking*: Risk-o-meter Risk-o-meter

• To Generate Long Term Capital Appreciation

• An open ended equity scheme investing across large cap, mid cap
and small cap stocks

*Investors should consult their financial advisors if in doubt about

whether the product is suitable for them

(It may be noted that risk-o-meter specified above is based on internal assessment. The same shall be updated in accordance with provisions of SEBI circular dated October 5, 2020 on
Product labelling in mutual fund schemes on ongoing basis)

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully

Toll Free Number: 022-62827777 | SMS: TMF to 57575 | www.tatamutualfund.com

(Mon to Sat 9:00 am to 5:30 pm)
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