Tata Large Cap Fund gave 22.58% returns in 3-year period; should you invest?

ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.

BASIC FACTS
DATE OF LAUNCH
7 MAY 1998
CATEGORY
EQUITY
TYPE
LARGE CAP
AUM*
Rs.1,593
BENCHMARK
NIFTY 100 TOTAL
RETURN INDEX

WHAT IT COSTS
NAV**
GROWTH OPTION
Rs.387.13
IDCW**
Rs.84.35
MINIMUM INVESTMENT
Rs.5,000

MINIMUM SIP AMOUNT
Rs.150

EXPENSE RATIO# (%)
2.16
EXIT LOAD
For units in excess of 12% of the investment,1% will be charged for redemption within 365 days


*AS ON 31 AUG 2023
**AS ON 18 SEP 2023
#AS ON 31 AUG 2023



FUND MANAGER
ABHINAV SHARMA
4 MONTHS


Recent portfolio changes
New entrants
ABB India, AU Small Finance Bank, Jio Financial Services (July). Cholamandalam Investment & Finance Company, Cummins India (Aug).
Complete exits
HDFC (July).
Increasing allocation
Havells India, HDFC Bank, Mahindra & Mahindra, Sun Pharmaceutical Industries (July). Infosys (Aug).

Should You Buy
This large-cap fund follows an elimination approach keeping in mind benchmark allocation. The portfolio comprises two buckets steady compounders, as well as re-rating candidates. The preference is for businesses with strong management team, no obvious red flags, competitive positioning and opportunity size. The portfolio is well diversified, with focus on bet sizing to make most of the winners and reduce damage from losers. The fund’s track record is patchy, exhibiting alternating bouts of outperformance and underperformance over the years. While its return profile has picked up in recent years, it needs to deliver consistently over prolonged time periods to be considered a worthy pick in its category.