Tata Ethical Fund is a mutual fund designed for socially conscious investors seeking to align their financial goals with ethical values. This fund invests in companies that adhere to responsible business practices, making it ideal for individuals who prioritize sustainability and ethical governance in their investment choices. By choosing Tata Ethical Fund, you contribute to a positive impact while aiming for potential financial growth.

Invests in ethically responsible companies
Ideal for socially conscious investors
Promotes sustainable and responsible practices
Offers potential for long-term capital appreciation
Managed by experienced professionals
Regular income through IDCW payouts

Investment Thesis

Tata Ethical Fund presents a compelling investment opportunity due to its strong promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. This combination positions the fund as a prudent choice for investors seeking ethical and sustainable returns.

Backed by the reputable Tata Group, ensuring trust and stability.
Strong focus on digital services, tapping into the growing tech-savvy consumer base.
Valuation metrics indicate an attractive entry point compared to industry peers.
Commitment to ethical investing aligns with increasing investor demand for sustainability.
Potential for long-term capital appreciation through diversified investments.

Opportunity vs Risk

Opportunities

Strong historical performance
Diversified investment portfolio
Focus on ethical companies
Growing interest in sustainable investing
Potential for long-term capital appreciation

Risks ⚠️

Market volatility impacts returns
Regulatory changes in fund management
Economic downturns affect performance
Limited liquidity in certain investments
High expense ratio compared to peers

Peer Perspective

Tata Ethical Fund trades at a slight premium compared to peers like HDFC Mutual Fund and ICICI Prudential. A rerating could occur if it achieves consistent margin stability and accelerates growth in AUM.

📊 Stock Investment Checklist (100 Points)

Tata Ethical Fund(IDCW-Payout) • Updated: 2025-10-01 07:24:02

10

Business
High

The fund is invested in sectors that are increasingly focused on sustainability and ethical practices, which are future-ready.
10

Growth
High

Consistent revenue and profit growth observed over the past few years.
10

Profitability
High

ROE and ROCE are above industry averages, indicating strong profitability.
8

Valuation
High

Valuation metrics are reasonable compared to peers, but some segments are overvalued.
7

Balance
High

The fund maintains a healthy balance sheet with manageable debt levels.
6

Governance
Good

Promoter holding is stable, but there are minor concerns regarding disclosures.
5

Drivers
Good

Growth drivers are present, but execution risks remain a concern.
5

Technicals
Good

Market sentiment is mixed, with some liquidity issues noted.

Final Score & Verdict

Score 68 / 100 • Decent

The Tata Ethical Fund shows promise with a decent score, indicating potential for growth, but investors should be cautious of execution risks and market sentiment.