Tata Small Cap Fund

Ticker: mf12506
Decent 60/100

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Business Overview

Tata Small Cap Fund is a dynamic mutual fund designed for investors seeking long-term capital appreciation through exposure to small-cap stocks. Ideal for those with a higher risk appetite, this fund aims to capture the growth potential of emerging companies in India. With a robust investment strategy and experienced management, it focuses on quality businesses with strong fundamentals. Investing in this fund can be a strategic move for wealth creation in a growing economy.

  • Focus on long-term capital appreciation
  • Invests in high-growth small-cap stocks
  • Managed by experienced professionals
  • Diversifies risk across multiple sectors
  • Ideal for risk-tolerant investors

Opportunity vs Risk

Opportunities
  • High growth potential in small caps
  • Diversification across various sectors
  • Rising retail investor participation
  • Strong historical performance
  • Favorable market conditions for small caps
Risks ⚠️
  • Market volatility affecting small caps
  • Economic downturn impacts growth
  • Regulatory changes in the sector
  • High expense ratios compared to peers
  • Liquidity concerns in smaller stocks

Peer Perspective

Tata Small Cap Fund trades at a slight premium to peers like Nippon India Small Cap Fund and HDFC Small Cap Fund, necessitating consistent growth acceleration and margin stability for a potential rerating.
📊 Stock Investment Checklist (100 Points)
Tata Small Cap Fund • Updated: 2025-09-29 15:52:31
  • 10
    Business
    High
    The small-cap sector shows potential but faces high volatility.
  • 10
    Growth
    High
    Consistent revenue growth observed, but profit margins are fluctuating.
  • 10
    Profitability
    High
    ROE and ROCE are decent but not outstanding compared to peers.
  • 8
    Valuation
    High
    Valuation metrics are slightly above average for the sector.
  • 6
    Balance
    Good
    Moderate debt levels, but liquidity is a concern.
  • 5
    Governance
    Good
    Promoter holding is strong, but some pledging exists.
  • 4
    Drivers
    Good
    Growth drivers are present, but execution risks are significant.
  • 2
    Technicals
    Low
    Market sentiment is mixed with low liquidity.
Final Score & Verdict
Score 60 / 100 • Decent
The Tata Small Cap Fund has potential but carries risks associated with small-cap investments. Caution is advised.


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