Tata AIA Multi-Cap Fund - Facts, Risks, and Returns

Tata AIA Multi Cap Fund

The Tata AIA Multi Cap Fund is an equity-oriented fund that invests across large-cap, mid-cap, and small-cap companies, aiming for long-term capital appreciation by maintaining a diversified portfolio. It provides investors exposure to all market segments, helping reduce portfolio risk and maximize returns through strategic diversification.

Investment Objective of Tata AIA Multi Cap Fund

The fund's primary goal is to generate long-term capital growth by investing in a mix of equity and equity-related instruments across different market capitalizations. This approach allows fund managers flexibility to explore opportunities across the market spectrum rather than being confined to a single segment.

Key Benefits of Tata AIA Multi Cap Fund

Below are the key benefits of Tata AIA Multi Cap Fund:

Diversified exposure to large, mid, and small-cap stocks.

Suitable for medium to long-term investors seeking capital appreciation.

Rated 5 stars by Morningstar as of December 31, 2024, indicating strong risk-adjusted performance.

Helps investors benefit from compounding and reduced volatility over time.

Fund Performance Highlights

NAV as of April 11, 2025, stands at ₹58.27 with a 5-year annualized return of 29.9%.

The fund has shown consistent growth since inception, demonstrating the effectiveness of its multi-cap strategy.

Additional Information of of Tata AIA Multi Cap Fund

The fund is available as an investment option within Tata AIA Life Insurance Unit-Linked Insurance Plans (ULIPs), allowing investors to combine insurance with wealth creation.

It is managed by Tata Asset Management, which has over 25 years of experience in asset management.

The fund offers growth and income distribution options for investors.

Summary

Tata AIA Multi Cap Fund is a well-diversified equity fund that leverages the growth potential of companies across various market capitalizations. Its strong performance track record, combined with expert fund management and a 5-star Morningstar rating, makes it an attractive investment option for investors looking for long-term capital appreciation with balanced risk exposure.

FAQs

What is the investment strategy of the fund?

The fund follows a multi-cap strategy, which means it invests in companies of all sizes — large, mid, and small caps — to balance risk and return. The fund manager dynamically allocates assets based on market opportunities and valuations.

What is the risk level of this fund?

As an equity multi-cap fund, it carries a moderate to high risk profile. Investments in equities are subject to market fluctuations, but diversification across market caps helps reduce concentration risk.

Is there any exit load or penalty for redemption?

Yes, the fund charges an exit load of 1% if units are redeemed within 365 days (1 year) from the date of investment. No exit load is charged after 1 year.

What is diversification in finance?

In finance, diversification is a strategy of capital allocation which helps to reduce risk by reducing the exposure to a particular stock or any asset.

How does taxation on mutual fund investments work?

Fund Type	Short-term Capital Gain (STCG)	Long-term Capital Gain (LTCG)
Equity fund	If Less than 12 months	If 12 months or more
Debt fund	If Less than 36 months	If 36 months or more
Hybrid equity-oriented fund	If Less than 12 months	If 12 months or more
Hybrid debt-oriented fund	If Less than 36 months	If 36 months or more

LTCG and STCG Tax rates for Equity are – 10% and 15% (For LTCG, up to ₹ 1 lakh in a year is tax-exempt). (*Tax benefit is subject to changes in tax laws.)
LTCG and STCG Tax rates for Debt are – STCG Taxed at the investor’s income tax slab rate and LTCG 20%.

What is a “Cap” in equity markets?

In the equity markets, Cap stands for market capitalization.

What are dividends in mutual funds?

Dividends are the sum of money paid to the shareholder of a company out of its profit.

What is AUM?

AUM is Asset Under Management which is the fund size of a mutual fund.

Holdings	% Portfolio Weight
HDFC Bank Ltd	5.54
Infosys Ltd	5.13
InterGlobe Aviation Ltd	4.51
BSE Ltd	4.14
Reliance Industries Ltd	3.99
Multi Commodity Exchange of India Ltd	3.57
ICICI Bank Ltd	3.16
Trent Ltd	2.64
Zomato Ltd	2.62
Max Financial Services Ltd	2.54

	Last 5 Years Returns		Since Inception Returns
Tata AIA Fund	Fund Return (%)	Benchmark Return (%)	Fund Return (%)	Benchmark Return (%)
Multi Cap Fund	27.64%	16.57%	22.13%	13.37%

Feature	Details
Fund Type	Multi Cap Equity Fund
Investment Strategy	Diversified across large, mid, small-cap
Equity Allocation	Approximately 96%
Morningstar Rating	5 Stars (as of Dec 31, 2024)
Suitable For	Medium to long-term investors seeking growth