The strategic investment policy of the fund, according to market experts, has helped the fund not only outperform the index but also record a substantial jump of 2.70 per cent in its NAV from a low of Rs 9.99 registered on its inception day.

Interestingly, the fund has focussed its investment during the month of July at the counters of Tata Infotech (14.22 per cent), Hindustan Lever (13.80 per cent), Ponds, Infosys Technologies (12.45 per cent), Dr Reddy's Laboratories (12.20 per cent), HDFC Bank (10.61 per cent), Smithkline Consumer (8.06), HPCL (7.51 per cent), Satyam Computers (6.90 per cent), Smithkline Pharma (5.93 per cent), ITC (5.84 per cent) and Nestle (2.47).``The focussed approach of the fund and its stock selection coupled with market timing has helped the fund outperform the index and passon rich benefits to its investors,'' explained Ajit Sanghvi, director of Malini Sanghvi Securities, BSE broker.

Nestle, according to fund managers, has been a new entrant in the list of securities where the fund has taken an exposure during the month of July.``The investments have been restricted to a few companies whose market capitalisation is greater than Rs 500 crore,'' stated KN Atmarani, the managing director of Tata Mutual Fund, while emphasising that since the fund is open-ended, it has adhered to the norm of booking profits to the tune of 20-25 per cent and exiting out of counters. The fund has restricted its exposure to only those counters where liquidity is high.

According to industry experts, Tata's pure equity fund has been the only scheme which has focussed its attention on the info-tech (33.57 per cent), fast moving consumer (FMCG) (30.59 per cent) and pharmaceutical sector (18.13 per cent).

The mutual fund had launched Tata Twin Option Fund earlier this year which closed on May 6 andmanaged to mobilise Rs 5.10 crore. The twin option fund offers two options to investors based on their risk taking capacity - a pure equity option and a balanced portfolio option. Under the pure equity option, 95-100 per cent of the funds available will be invested in equity.