Invest in Tata Hybrid Equity Fund for Growth and Handsome Returns

Posted by Dishika Baheti on July 28th, 2018

Among many asset management companies in the mutual fund market, one is Tata Mutual Fund which has launched a number of schemes for its different investors such as businessmen, servicemen, housewives, retired person, etc., under different categories such as equity, fixed income, hybrid, etc. In this article, you will get to read about Tata Hybrid Equity Scheme which was launched on October 08th, 1995 as Tata Balanced Fund. The investment objective of this scheme is to help investors earn long-term capital appreciation along with income over medium to long-term, thus helping them receive capital growth along with security in the form of stable returns.

The Managers of Tata Hybrid Equity Fund Growth

This fund is jointly managed by Mr. Pradeep Gokhale and Mr. Murthy Nagarajan since April 2016 and April 2017.

Mr. Pradeep Gokhale has done B.Com, is a Chartered Accountant and CFA. He has over 25 years of experience and is serving as senior fund manager at Tata Asset Management Company. Before joining Tata AMC, he has worked with companies such as Credit Analysis and Research Ltd., Lubrizol India, Tata International, and Bombay Dyeing.

Mr. Murthy Nagarajan has done M.Com. and holds a Post Graduate Diploma in Business Administration from Somaiya Institute of Management and Research. He has over 20 years of experience and is the head of fixed income at Tata Asset Management Company. Before joining this company, he has worked with Quantum AMC and Mirae Asset Global Investment India Ltd.

Allocation of Assets

The fund of this scheme is aimed to be invested in a minimum of 65% equity and equity related instruments to a maximum of 80% with high risk involvement. It invests in a minimum of 20% to a maximum of 35% of the assets in debt and money market instruments with risk involved being low to medium. Its assets under management as on June 30th, 2018 was Rs. 5163 crores out of which investment made in equity is 77.7%, 19.62% in debt, and 2.68% in cash and cash equivalents.

The top five companies is whose equity stocks it has invested majorly are HDFC Bank, Tata Consultancy Services, Reliance Industries, Maruti Suzuki India, and Larsen & Toubro with the investment percentage of the assets allocated in them being 8.17, 4.92, 4.33, 3.54, and 3.45, respectively. The top five companies in whose debt instruments it has invested majorly are 7.72% GOI 2025 (Central Government Loan), ONGC Petro Additions 2021 (Debenture), 6.84% GOI 2022 (GOI Securities), HDFC 301-D 22/01/2019 (Commercial Paper), and 7.35% GOI 2024 (Central Government Loan) with the assets allocated in them being 1.71%, 1.42%, 1.30%, 1.30%, and 1.24%, respectively.

Its Performance

As on July 25th, 2018, the trailing returns provided by this scheme for one year was 1.65%, for three years were 6.16%, five years were 16.58% which show that initially though this scheme yielded very low returns but within five years time it even surpassed its benchmark’s returns. If you are planning to invest in this scheme, then five year is the best duration for which you should invest in it.

Key Factors That Are Required to Check Before Investing in Tata Hybrid Equity Fund

Tata Hybrid Equity Fund NAV as on July 25th, 2018 was Rs. 206.3516. The minimum purchase amount with which an investor may start investing in this scheme is Rs. 5000 and the minimum additional purchase amount for existing investors is Rs. 1000. There is no entry load which is to be incurred by an investor. However, if an investor redeems the units on or before completion of one year, then he becomes liable to pay 1% as exit load.

Investors who have moderately high risk appetite may invest in this scheme by Tata Mutual Fund. Don’t forget to consult a financial advisor before finalizing the decision.