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Tata is a name which needs no introduction. The company has a presence all over the world and deals in various markets. One such venture of this company has made its name in its respective category and that company is Tata Mutual Fund. This AMC has provided its investors with some really great schemes over the time and today we are going to talk about one such scheme, the Tata Hybrid Equity Fund. Let’s have a look at what this fund holds.
Fund Analysis
This scheme was launched on Oct 08, 1995, under the hybrid equity category. The previous name of the fund was Tata Balanced Fund, which after the issuance of SEBI guidelines on October 2017, was changed to Tata Small Cap Fund. Currently, Tata Hybrid Equity Fund NAV is Rs 200.44 (as on Jun28, 2018) and the scheme is managing a corpus of Rs 5439 crores (as on May 31, 2018). The scheme is currently being managed by Mr. Pradeep Gokhale and Mr. Murthy Nagarajan, who both holds plenty of experience in the capital market. As for annual expenses, Tata Hybrid Equity Fund charges an expense ratio of 2.17% (as on May 31, 2018) and if you decide on redeeming your amount before 1 year, then you have to pay an exit load of 1%.
Portfolio Analysis
The Tata Hybrid Equity Fund being a hybrid equity scheme invests in a mix of equities and debt. This scheme follows a 70/30 allocation style for choosing equities and debt instruments. As of now, the scheme has 75.59% of the total investment amount in equities and the remaining 24.41% in debt and cash instruments. The top sectors that the company invests in are finance, construction, energy, automobile, and FMCG, which holds about 57% of the total equity investment. As for the top holdings, the list includes players like HDFC Bank, Reliance Industries, Larsen & Turbo, ITC, ICICI Bank and many other companies which you can check at MySIPonline.
Performance Analysis & Risk Measures
The returns given by the scheme in 1, 3, 5, and 10 years of time are 2.34%, 5.95%, 15.85%, and 14.23%, respectively. Tata Hybrid Equity Fund has shown some consistent growth over the years, but a drop is seen in last 1 year, which has affected its short-term gain. But the thing to notice here is that even after the drop the fund has managed to maintain great long-term gains. Its 10-year gains are at par with many other schemes in its respective category. Now as for the risk, this fund is a good option for investors who have moderate risk appetite. As the fund has investments in debt and cash instruments, a stability can be seen even when the equity markets are volatile.
So going through the above information you could have taken a basic idea about how good the Tata Hybrid Equity Fund is. This fund is a great option for investors who are looking forward to investing in hybrid mutual funds for a long term. If you want to invest in this fund or have any queries regarding it then you can reach our experts at MySIPonline 24x7.