All about Tata Mutual Fund - Prathit Bhobe Elects as CEO and MD

Headquartered in Mumbai, India, the Tata Group is a world famous Indian multinational conglomerate. It was founded in 1868 by Jamshedji Tata and has now grown to working in more than 100 countries across six continents. The Tata Group exports products and services to over 150 countries.

The Tata Mutual Fund House offers over 30 schemes in a range of categories. With its strong brand name, these Tata Mutual Funds have recognition in the market and are deemed trustworthy by investors.

Appointment of Prathit Bhobe as MD and CEO

The Tata Group on the 15th of January announced that Mr. Prathit Bhobe would be joining as managing director and chief executive officer of its business for asset management, Tata Asset Management Ltd, also known as Tata Mutual Fund.

The post had been unoccupied for nearly 7 months after R Ganesh had stepped down in June of 2017 and the leadership role was being chosen carefully.

Previous to this appointment, Mr. Bhobe served as senior general manager for 11 years at ICICI Bank. He had experience managing retail liabilities product, wealth management as well as private banking verticals.

The announcement was made by Saurabh Agrawal, Group CFO and Director, Tata Sons Ltd who praised Mr. Bhobe’s experience and skills.

The date of joining of Mr. Prathit Bhobe has not yet been announced.

A Few Details about Tata Mutual Fund (Tata AMC)

A trusted and established subsidiary of a multinational company, many consider that Tata AMC is too big to fail. Despite problems in the recent past, the Tata Group and its subsidiaries have emerged virtually unscathed, with broad support in the market.

-Tata AMC is well-known but has been going through some rapid changes. Investors should keep themselves aware of the current climate.

-Mr. Gopal Agrawal is serving as chief investment officer – equities and Mr. Murthy Nagarajan as head – fixed income, both recent appointees in March, 2017.

-Tata AMC ranks 13 by average assets under management (AUM) among mutual fund firms operating in India and industry body Association of Mutual Funds in India published that it reported Rs 48,906.54 crore in AUM as on December of 2017.

Tata Mutual Fund: Highlighting the Investors’ Needs

Tata AMC prides itself on excellent customer relations. They claim one of the best after-sales relationship management in the business.

Tata AMC offers many types of mutual funds solutions for a variety of investor needs. Investors can invest through SIP (Systematic Investment Plan) or lump sum, either through equity based, diversified, or debt based funds.

-There is consistency in the returns that are generated by the mutual fund offerings of the house.

-Value Research has valued the Tata Mutual Fund offerings at generally high levels, with very few funds getting 2 star ratings and the majority receiving four or three start ratings.

-All mutual fund houses should offer diversified capitalization schemes in order to attract a broad base of investors, and the company targeting has been seen to be appropriate in the past.

-Many of the offerings have low or mid-range minimum investment values which is required to attract different types of investors.

All Types of Schemes Are Offered by Tata Mutual Fund House

Many investors are unsure where to start with the mutual fund planning. It is best to begin by taking into account your own risk-averseness, your free funds, and your requirements from those funds. Once the time and funding has been balanced it is usually much easier to decide which mutual fund or combination of funds to invest in.

-Debt Funds: For investors who are looking for low-risk funds and are satisfied with relatively low returns that are fixed, debt funds such as the Tata Dynamic Bond Funds are suitable.

-Hybrid funds: These funds provide a balance of equity and debt funds, and offer better returns that debt funds to those investors who are moderately risk averse and can tolerate some ups and downs. Tata Balanced Fund is a popular hybrid fund from the Tata Mutual Fund House.

-Equity funds: The most popular equity funds tend to be Equity Linked Saving Schemes such as the Tata Tax Advantage Fund which give tax savings to investors. These are far more volatile than debt based instruments and may give very high or very low returns from time to time. Equity funds are a long-term investment as decent equity mutual funds will give a good return over the long term. The investments may be in Small, Mid, or Large Cap. Tata Equity Opportunities is one of the more popular equity based fund.

A Trustworthy Group Sure to Go Far

With a solid background, and the leadership expected from Mr. Bhobe, gurus of the market seem to look forward to the future of Tata AMC. It appears that investors can also rest assured that their funds are safe.