P/E ratio is the commonly used term for the ratio of Market Price of a share to Earnings per Share (EPS). It could be used as an indicator of how much an investor may be willing to pay for a share for every rupee of its earnings. One of the widely used screening parameter for value stocks is the Price to Earnings ratio (P/E ratios)
Tata Equity P/E Fund follows the value-conscious style of investing. The Scheme aims to invest at least 70% of its assets in companies which, at the time of investment, have a rolling twelve month P/E ratio lower as compared with the rolling twelve month P/E ratio of the BSE Sensex. Buying good companies at an attractive P/E ratio is a good discipline, but clearly not the only anchor. The Fund uses several other qualitative and quantitative screens to buy companies. The Fund strives to “buy good stocks at cheap valuations and not “cheap” stocks”
Tata Mutual Fund offers two ’Dividend Trigger Option’ under the existing dividend option of Tata Equity P/E Fund. The trigger options available are Option A (Trigger A) and Option B (Trigger B) for 5% and 10% appreciation respectively.
Under Dividend Trigger A, the Fund will initiate the declaration of dividend when there is an appreciation in NAV from the last ex-dividend NAV during the immediate preceding calendar quarter by 5%.
In case of Dividend Trigger B, the Fund will initiate the declaration of dividend when there is an appreciation in NAV from the last ex-dividend NAV during the immediate preceding calendar quarter by 10%.