If you think that a large amount is needed for investment, then this story of Tata Mutual Fund can change your thinking. A scheme of Tata Mutual Fund, Tata Midcap Growth Fund – Regular Plan has proved that regular small savings can also make big funds in the long term. In this fund, if someone had been up to 30 years of SIP of 1,000 every month, then today his value would have been more than 1.02 crores.

Start and long journey of funds

Tata Midcap Growth Fund started on 1 July 1994 and has now completed its 30 years. It is one of the oldest midcap funds in India. The objective of this fund is to give better returns to investors by investing in midcap companies in medium to long periods.

Tremendous returns in 30 years

This fund has given an average of 13.23 percent annual return from its launch so far. At the same time, an annual return of up to 14.91 percent in 10 years, 16.51 percent in 20 years and 17.92 percent in 30 years through SIP. This means that if someone had invested a lump sum of 1,00,000 30 years ago, then today the investment would have become 41.58 lakhs.

Fund’s portfolio and investment strategy

The portfolio of Tata Midcap Growth Fund is focused in companies in India which fall into the midcap segment. 91.36 percent of the investment in this fund is in domestic equity, out of which 14.43 per cent of largecap, 46.52 per cent midcap, and 14.58 per cent in smallcap shares.

Top holdings include Max Financial Services (3.77 percent), Alkem Laboratories (3.07 percent), Jubilant FoodWorks (2.86 percent), Lupin (2.79 percent), and Aurobindo Pharma (2.73 percent). Its inclination is visible towards the healthcare and consumer sector.

Balance of risk and stability

The standard division of this fund is 16.02 percent, which suggests that it has fluctuations of moderate levels. Sharpe Ratio 0.77 indicates that returns are fine compared to the risk. Its beta is 0.91, that is, this fund is slightly less volatile than the market. However, Alpha is -1.14, which shows that this fund has been slightly behind its benchmark.

Who should invest?

This fund is right for investors who are willing to invest for 3, 4 years or more and who expect high returns. Midcap funds have a special feature that they have more volatility, but they can give good returns in the long term.

Keep these caution before investment

It is worth noting that the previous performance is not a guarantee of future. Market fluctuations and policy changes can affect the performance of funds. Therefore, before investing, consult a sebi-registered financial advisor.

Disclaimer: (Information provided here is being given only for information. It is necessary to tell here that the investment market is subject to risks. Always consult expert before investing as an investor. Never is advised to invest money from Abplive.com.

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