Tata Large Cap mutual fund scheme from Tata Mutual Fund, which has been in existence for over 8 years since launched on 7th May 1998. The fund has Rs. 983 Crores worth of Assets Under Management(AUM) and is a medium-sized fund of its category. The expense ratio is 1.71%, which is higher than most other Large Cap funds charge.
The fund’s returns for the last 1 year are 59.87%. Since launch, it has delivered 14.83% of average annual returns and has doubled the money invested in it every 2 yrs. The scheme’s ability to deliver returns consistently is in line with most funds of a similar category, also the ability to control losses in a falling market is below average.
The fund has the majority of its money invested in the Financial, Technology, Energy, Healthcare, Construction sectors. It has taken less exposure in the Financial, Technology sectors compared to other funds in the category. ICICI Bank Ltd, HDFC Bank Ltd, Infosys Ltd, Reliance Industries Ltd, State Bank of India are the top 5 holdings of this fund. The fund has 97.38% investment in Indian stocks of which 77.5% is in large-cap stocks, 7.28% is in mid-cap stocks, 3.82% in small-cap stocks.
Key highlights of Tata Large Cap Fund
1. The Current Net Asset Value of the Tata Large Cap Fund Regular Plan as of 06 Sep 2021 is Rs 329.18 for the growth option of its Regular plan.
2. The trailing returns over different time periods are 54.42% (1year), 13.24% (3year), 12.7% (5year) and 20.06% (since launch). Whereas, Category returns for the same time duration are 50.45% (1year), 13.51% (3year) and 14.53% (5year).
3. The Tata Large Cap Fund Regular Plan currently holds Assets Under Management worth Rs. 983.3 Crores.
4. Tata Large Cap Fund Regular Plan has an Exit Load of 1% if redeemed within 365 days for units more than 12% of the investments.
5. The minimum investment required is Rs. 5000 and the minimum SIP investment is Rs. 500.
Investment objectives and benchmark
1. The investment objective of the fund is to aim at medium long-term capital growth, with 100% investments in the equity of large-cap, liquid blue-chip companies.
2. It is benchmarked against S&P BSE Sensex Total Return Index (TRI).
Asset allocation of Tata Large Cap Fund
1. The asset allocation of the fund comprises around 97.38% in equities, 0.73% in debts, and 1.92% in cash and cash equivalents.
2. The top 10 equity holdings comprise around 55.82% and the top 3 sectors comprise around 59.24% of the asset holdings.
3. The fund largely follows a growth-oriented approach of investing and invests across market capitalizations such as 77.5% in large-cap stocks, 7.28% in mid-cap stocks, 3.82% in small-cap stocks.
- ICICI Bank Ltd – 9.25%.
- HDFC Bank Ltd – 8.04%.
- Infosys Ltd – 7.54%.
- Reliance Industries Ltd – 7.05%.
- State Bank Of India – 6.55%.
- Axis Bank Ltd – 4.41%.
- Bharti Airtel Ltd – 4.08%.
- TATA Consultancy Services Ltd – 3.64%.
- Larsen and Toubro Ltd – 3.08%.
- TATA Steel Ltd – 2.91%.
- NAV (Direct – Growth) – Rs. 363.31
- Regular Growth – Rs. 329.18
- IDCW – Rs. 71.79
- Launch date – 7th May, 1998.
- Return since launched – 20.11%.
- Benchmark – S&P BSE Sensex TRI.
- Risk – very high.
- Type – Open ended.
- Assets – Rs. 983 Crores (as of Sept, 2021).
- Expense ratio – 1.71%.
- Turnover – 52.02%.
- Minimum Lumpsum investment – Rs. 5000.
- Minimum 2nd investment onwards – Rs. 1000.
- Minimum SIP Investment – Rs. 500.
- Minimum withdrawal – Rs. 500.
- Lock-in the period – not applicable.
- Exit load – For units over 12% of the investment,1% will be charged for redemption within 365 days.
1. Gains are taxed at a rate of 15% (Short term Capital Gain Tax or STCG) if units are redeemed within 1 year of investment.
2. For units redeemed after 1 year of investment, gains of upto Rs. 1 lakh accruing from those units in a financial year shall be exempted from tax.
3. Gains of more than Rs. 1 lakh will be taxed at a rate of 10% (Long term Capital Gain Tax or LTCG).
4. For Dividend Distribution Tax, the dividend income from this fund will get added to the income and taxed according to the investor’s respective tax slabs.
5. Also, for dividend income over Rs. 5,000 in a financial year, the fund house shall deduct a TDS of 10% on such income.
- 1 year returns are higher than the category average returns.
- 3 year returns are higher than the category average returns.
- 5 year returns are lower than the category average returns.
Peer comparison with other mutual funds
1. Canara Robeco Blue Chip Equity Fund – 21%.
2. Mirae Asset Large Cap Fund – 17.39%.
3. BNP Paribas Large Cap Fund – 18.44%.
4. Axis Blue Chip Fund – 19.90%.
5. IDFC Large Cap Fund – 15.30%.
Fund Management of Tata Large Cap Fund
1. Mr. Amey Sathe – He is an MMS & CFA. Before TATA Mutual Fund, he has worked with JM Financial Institutional Securities Ltd as Assistant Vice President Equity Research, CARE Ratings as Deputy Manager, and HDFC Securities in Equity research.
2. Mr. Rupesh Patel – He is a B.E(CIVIL) and MBA(finance). Previously he worked at Indiareit Fund Advisor Pvt Ltd and Credit Analysis & Research Ltd.
3. Mr. Ennette Fernandes – He is a B.com and PGDBM. Previously served in Phillip Capital India Pvt Ltd as Jr. Research Analyst on FMCG sector.
4. Mr. Venkat Samala – He is an MBA. Worked in Quality Engineering and Software Technologies Pvt Ltd as Sr. Design Engineer before serving in TATA.
Who should invest in Tata Large Cap Fund
If invested for 5 years or more, expected gains could comfortably beat the inflation rate as well as returns of fixed income options. But, investors should need to be prepared for the ups and downs of investment value along the way. This is a fund that invests in big companies rather than investing in smaller companies, as a result, these large-cap funds tend to fall less when stock prices fall. Therefore, they are more suited to conservative equity investors. But, it is advisable not to invest in this fund or any other large-cap fund, if one need to redeem the investment in less than 5 years.