Tata Mid Cap Fund: A Deep Dive into its Success
Tata Mid Cap Mutual Fund: The Tata Group stands as one of India’s most esteemed business conglomerates, diversifying from salt to software. Another feather in their cap is the mutual fund business. One of their notable schemes has, quite astonishingly, turned regular investors into millionaires: the Tata Mid Cap Mutual Fund.
Launched on March 31, 2004, the fund’s performance has been consistently commendable. For perspective, an investor who had initiated a Systematic Investment Plan (SIP) of ₹10,000 at its inception would now possess a staggering value of ₹1.53 crores. This scheme has impressively yielded an average annual return of about 16.75%. This pace of growth equates to an impressive net return of approximately 553%.
Breaking down the SIP returns over various periods:
- 1-year SIP return: 19.12%
- 2-year SIP return: 25.06%
- 3-year SIP return: 37.25%
- 5-year SIP return: 75.94%
- 10-year SIP return: 17.61%
Currently, the Net Asset Value (NAV) of the Tata Mid Cap Fund stands at ₹309.7772. At its launch, the NAV was a mere ₹10, indicating an extraordinary 30-fold growth in the past 19 years. The fund currently manages assets worth ₹2519 crores. It operates with an expense ratio of 2.01%.
CRISIL, a leading ratings agency, has accorded this fund a three-star rating, testifying to its solid performance. A glance at the fund’s portfolio reveals top 10 shareholdings in renowned companies such as IDFC First Bank Ltd., Thermax Ltd., Aurobindo Pharma Ltd., Cummins India Ltd., and several others.
Tata Mid Cap Fund exemplifies the kind of robust returns a well-managed mutual fund scheme can offer. Given the Tata Group’s legacy and the fund’s performance, it remains a noteworthy option for investors looking to diversify their portfolio.
