Titanium Hybrid Long-Short Fund Regular Plan Growth Units Regular Plan Growth · BSE:TSIFRG

Titanium Hybrid Long-Short Fund Regular Plan Growth Units Regular Plan Growth — Tata Mutual Fund — Investor Presentation (January 2019)

24 slides from Titanium Hybrid Long-Short Fund Regular Plan Growth Units Regular Plan Growth's investor presentation, Jan 9, 2019

1. Slide 1: Balanced Advantage Fund

   THE MARKET MIGHT BE TOPSY-TURVY. YOUR PORTFOLIO NEED NOT BE. BALANCED ADVANTAGE FUND (An Open Ended Dynamic Asset Allocation Fund) This product is suitable for investors who are seeking*: • Capital Appreciation along with generation of income over medium to long term period. NFO OPENS : 9th JANUARY,

2. Slide 2: Investor Behaviour

   INVESTOR BEHAVIOUR Point of Maximum Market Emotions Cycle Financial Risk Graph of how we feel as the markets uctuate Euphoria Anxiety Thrill Denial Excitement Fear Optimism Desperation Optimism Panic Relief Hope Capitulation “Wow, am I smart.” Depression Despondency “Temporary set back - I’m a long

3. Slide 3: The Market Psychology Matrix

   THE MARKET PSYCHOLOGY MATRIX High Complacency Uncertainty (High P/E & Low (High P/E & High Volatility) Volatility) Market P/E Disinterested Fear Market (Low P/E & High (Low P/E & Low Volatility) Volatility) High Low Market Volatility

4. Slide 4: The Market Psychology Matrix at Play

   THE MARKET PSYCHOLOGY MATRIX AT PLAY Source: Bloomberg

5. Slide 5: Dynamic Asset Allocation Matters

   DYNAMIC ASSET ALLOCATION MATTERS CRISIL Liquid Fund CRISIL Composite Year Nifty 50 TRI Top Performer Index * Bond Fund Index 2008 -51.3% 8.4% 9.1% Debt Higher Equity 2009 77.6% 4.9% 3.5% Equity Allocation creates wealth 2010 19.2% 5.1% 5.0% Equity Shift to Liquid 2011 -23.8% 8.1% 6.9% Liquid Protect

6. Slide 6: Need for Discipline

   NEED FOR DISCIPLINE Outflows and Inflows in Equity AUM are correlated to market’s rise and fall 25,000 14000 20,000 12000 EQUITY NET SALES INVESTMENT RETURN BEHAVIOUR 15,000 10000 NIFTY 50 GAP 10,000 8000 INVESTOR 5,000 6000 RETURN 0 4000 -5,000 2000 -10,000 0 Sep-10 Sep-12 Sep-14 Sep-16 Sep-18 Jan-10

7. Slide 7: Introducing Tata Balanced Advantage Fund (TBAF)

   INTRODUCING TATA BALANCED ADVANTAGE FUND (TBAF)

8. Slide 8: Tata Balanced Advantage Fund

   TATA BALANCED ADVANTAGE FUND Enjoy the ride, whichever direction it may be going:  Equity & Debt Allocation will change according to market scenario  Investors don’t have to time the market  Overcoming emotional biases

9. Slide 9: Asset Allocation Strategies

   ASSET ALLOCATION STRATEGIES  Combination of PE and  Price Earnings (PE)  Factors in other market PB based framework dynamics other than intrinsic value  Use of both ratios to  Mix of forward and gauge intrinsic value of trailing valuations  In house P/E based stock model with 10% variation to

10. Slide 10: PE + PB Based Approach

    PE + PB BASED APPROACH PE Ratio:  A valuation ratio of a company's current share price compared to its earnings per share. Also sometimes known as "price multiple" or earnings multiple."  It tells us how much investor is willing to pay per rupee of earnings. P/B Ratio:  Price-to-book value ratio

11. Slide 11: PE Based Approach

    PE BASED APPROACH Mix of “FORWARD” and “TRAILING” valuation of Nifty  Price Earnings (PE) based framework  Model based solely on trailing PE, miss out on the market reaction to changes in forward earnings outlook  PE based approach, hence, uses average of trailing + forward PE, to ensure that the

12. Slide 12: Tata Balanced Advantage Fund - Asset Allocation Philosophy

    TATA BALANCED ADVANTAGE FUND - ASSET ALLOCATION PHILOSOPHY Sometimes PE model does not capture other dynamics in the market viz.  Correlation with the global markets (40-60%)  Market Momentum, and  Volatility Tata Mutual Fund Model - model allowing 10% variation to the basic PE based equity alloc

13. Slide 13: Approach to Asset Allocation

    APPROACH TO ASSET ALLOCATION Allocation Approach Valuations Low Market Valuations High Valuation Lower based Equity Exposure Higher Equity Exposure TATA Market Trend Use of Moving averages to look at the trend confirmation signals BALANCED based ADVANTAGE FUND Market Moderate the equity exposure as t

14. Slide 14: Tata Balanced Advantage Fund Valuation Model - Calendar Year Returns

    TATA BALANCED ADVANTAGE FUND VALUATION MODEL – CALENDER YEAR RETURNS PE Model Tata MF Model Year Nifty Unhedged Equity Unhedged Equity Returns Returns Component# Component# 2018 1.17% 3.79% 46% 4.88% 52% 2017 28.99% 15.57% 45% 17.13% 52% 2016 2.80% 4.30% 55% 6.68% 58% 2015 - 5.15% - 1.12% 55% 0.41%

15. Slide 15: Balanced Fund vs Balanced Advantage Fund

    BALANCED FUND VS BALANCED ADVANTAGE FUND Balanced Fund Balanced Advantage Fund  Fixed allocation of minimum  Managed equity allocation 65% to equity investments  Can have equity allocation  Consistent higher equity below 65%, however allocation may hurt exposure to hedged performance during vola

16. Slide 16: Equity Savings Fund vs Balanced Advantage Fund

    EQUITY SAVINGS FUND VS BALANCED ADVANTAGE FUND Equity Equity Savings Savings Fund Fund Balanced Balanced Advantage Advantage Fund Fund  Asset allocation across  Asset allocation across equity, arbitrage and debt equity, hedged equity/ investments arbitrage and debt investments  Generally have low

17. Slide 17: Risk-Return Matrix

    RISK-RETURN MATRIX HIGH Equity RISK Funds Balanced Balanced Funds Advantage Equity Funds Savings Debt Funds Funds LOW RETURNS HIGH

18. Slide 18: Why Tata Balanced Advantage Fund?

    WHY TATA BALANCED ADVANTAGE FUND?

19. Slide 19: Investment with Discipline

    INVESTMENT WITH DISCIPLINE The basic goal of the strategy is to be able to maneuver the investment allocation as per prevailing market conditions to make money work harder. Discipline to overcome emotional market reaction. NIFTY 50 Trailing PE Low 26 24 22 20 Equity 18 allocation 16 levels 14 12 10

20. Slide 20: Efficient Allocation Between Assets

    EFFICIENT ALLOCATION BETWEEN ASSETS Equity Potential Capital Appreciation Hedge Regular Income Equity / Arbitrage Debt Regular Income More than 65% allocation to Equity and Equity related instruments, hence benefit of equity taxation.

21. Slide 21: Why Tata Balanced Advantage Fund?

    WHY TATA BALANCED ADVANTAGE FUND?  Closely monitors the market behaviour and shifts the allocation Actively between Equity and Debt managed Equity  Active allocation to equity & equity related instruments, Minimum Allocation 65%-100% including hedged equity/arbitrage and debt allocation between 0%

22. Slide 22: Fund Facts

    FUND FACTS Scheme Name TATA BALANCED ADVANTAGE FUND NFO Dates 9th January 2019 to 23rd January 2019 Investment Objective The investment objective of the scheme is to provide capital appreciation and income distribution to the investors by using equity derivatives strategies, arbitrage opportunities

23. Slide 23: Risk Factor

    RISK FACTOR Mutual Fund Investments are subject to market risks, read all scheme related documents carefully Presentation as on 18th December, 2018

24. Slide 24: Thank You

    Thank You Toll Free Number: 1800-209-0101 | SMS: TMF to 57575 | www.tatamutualfund.com

Tata Mutual Fund — Investor Presentation (January 2019) on 6ix