Tata AIA Life - Whole Life Mid Cap Equity Fund

The Tata mid-cap equity fund can also invest a portion (0% to 35%) of its AUM (asset under management) in debt and money market instruments. It can also hold cash and cash equivalents if there is no investment opportunity in the current market conditions.

Tata Mid-Cap Equity Fund Facts

The Tata mid-cap equity fund was launched on 15/06/1994 and currently (as of 14/11/2021), it manages around ₹1460 Cr (AUM). Tata Asset Management which was incorporated in 1994, manages this fund. It has a track record of more than 25 years in the investment management business.

Investment Objective

The main objective of the Tata mid-cap equity fund is to provide the investors with a good return on their capital and also to provide income distribution. This fund focuses on the long-term and mid-term investment opportunities and allocates the investor's capital in growing mid-cap stocks. 

Investments made by the fund and fund managers are mainly focused on companies that can deliver great returns and have the potential to grow their business financially at a good rate. 

Asset allocation of the fund

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Fund Summary

Here is the fund summary of the fund:

• Expense Ratio – For the direct plan is 1.07% and regular plan is 2.46%

• Exit Load – 1% (if redeemed before 365 days or switched out amount is more than 12% of the original investment cost)

• AUM (Asset Under Management) (Fund Size) - ₹1,460 Cr

• Lock-in - No Lock-in period

• Age – Operational on 15/06/1994

• Benchmark - Nifty Free Float Midcap 100 TRI

• Minimum Investment – Minimum SIP (systematic investment plan) starts at ₹500 and Minimum Lumpsum investment starts at ₹5000

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Fund Return Summary

*Returns are subject to change. The investment risk in the investment portfolio is borne by the policyholder.

Pros and Cons

Some of the benefits and downsides of the fund are:

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Benefits of Tata Mid-Cap Equity Fund

The benefits of the Tata mid-cap equity fund are:

• Mid-cap stocks: It allocates funds to the mid-cap segment. In the equity and equity-related space, mid-cap has a high probability of generating decent returns. For example, this fund has returned 21.36% since its inception (for Direct plan), which means the value today of a lumpsum investment of ₹10,000 in 2013 is ₹47,054.87, which makes it a 4.705487 X return in 8 years. A SIP of ₹1000 since its inception (for direct plan) would have produced a value today of Rs 233,259, which makes it a 2.4297 X return in 8 years.

• Better Returns: This fund has a probability of generating higher returns as compared to conventional investment instruments such as Gold, FDs, Debt and money market instruments. This may also generate a higher return than large-cap funds. But this fund also has a higher risk profile. 

• Long-term to mid-term time horizon: This fund is suitable for investors who have a long-term or a mid-term investment horizon. Since it is an equity investment, it has a chance of higher volatility risk in the short term. Over a long period, it can consistently generate good returns.

• Track Record: Since 1994, this fund has delivered good returns, and the track record can help you understand the performance of the fund and the fund managers. Abhinav Sharma and Satish Chandra Mishra manage this fund. Abhinav Sharma has more than 15 years of experience in the asset management business, and Satish Chandra Mishra has more than 14 years of experience in the asset management business.

• No lock-in period: The Tata mid-cap equity fund doesn't have any lock-in period, which means you can withdraw your money as per convenience.

• Low exit load and expense ratio: This fund has a low exit load and expense ratio. A low exit load ensures that you don't have to pay a higher charge if you decide to exit the fund. Similarly, a low expense ratio ensures that you don't have to pay a higher charge for investing. These factors make an investment even more beneficial and affordable.

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Holdings of the Fund

The top 10 holdings of Tata Mid-Cap equity fund are:

*The holdings in the portfolio mentioned above are according to Oct 31, 2021.

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In Conclusion

To conclude, the Tata mid-cap equity fund is an open-ended and high-risk fund that focuses on investing and allocating its capital in equity or equity-related instruments from the mid-cap segment. This has delivered good and consistent returns since 1994 and Tata Asset Management manages it. However, you must always research before investing.

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