Tata Growth Fund

Tata Growth fund is being managed by Amish Munshi since Jan 2012.He has 18 years experience in equity markets. The team undertakes research to identify opportunities in equity markets to make profit for investors. Investment approach is to track stocks on a bottom-up basis. The fund’s performance has been unconvincing and has been a laggard. If you have invested in this fund, watch the performance of the fund closely. If you are a new investor you can safely skip this one.

Where does Tata Growth Fund invest your money?

Tata Growth fund is a small and mid cap fund which means your money is invested in stocks of medium size companies and small sized companies across sectors. The fund invests about 68% in mid cap companies, 18% in small cap companies and 14% in large cap companies. Large cap companies tend to be stable compared to mid cap and small cap companies. But mid cap companies are attractive due to prospects of kicker returns, which does not happen much frequently.

Suitable for what?
  • Creating wealth
  • Lifestyle needs
Not suitable for?
  • Child's education
  • Child's marraige
  • Retirement Plans
Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Recommended
How has Tata Growth Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in March 2003 the value of your investments would be around Rs 3.8 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.2 lakhs. The performance has been not better than or similar to other diversified mutual funds. The fund has been giving at around 4% every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in Tata Growth fund through SIP for the past 5 years today you would sadly have just around Rs 5.05 lakhs.

When to review?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a year. Too much attention is not good. 

What charges apply?

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of Tata Growth Fund is 2.78%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.

What are the tax implications?

The returns in a mutual fund are absolutely tax free, provided you do not withdraw within 1 year. Tata Growth fund does not qualify for sec 80C ELSS benefits.

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