Tata, being one of the most valued and trusted brands of the nation, has won the trust of mutual fund investors with the support of its premium customer service and coherent performance. Tata Mutual Fund handles asset worth approx 38,270 Crores across its various offerings. The fund house caters to everyone, including housewives, retired person, businessman, salaried professional, traditional capital builder, and aggressive investor. Their philosophy seeks coherent, long-term returns, as they focus on overall excellence by providing transparency and rigorously neutralized risks.
The Key Features of Tata Mutual Funds
The following are the key features that make Tata Mutual Fund the most preferred fund house of India.
On the basis of the value-based investment methodology, they are able to deliver results consistently. They strive to keep alive the faith of the late dean of their group - Mr. J.R.D. Tata, that the funds garnered from the individuals should go back to them.
They offer a wide variety of the investment products across versatile asset class, which takes care of the various investment segments. They provide their customers with the flexibility of operations that suits customers’ various investment needs.
They are committed to providing the premium service quality. Their main focus is locked on integrity that is a significant prospect of their business that helps them to earn customers’ trust.
The services are the forte of Tata Mutual Fund. They offer a broad range of services keeping in mind the challenges faced by the customers. The aim behind that is to provide a rewarding and fulfilling investing experience with them.
- A Premium-Pedigree
The fund house is a significant part of the Tata Group - one of India’s most respected and largest industrial groups, which is known well for its business ethics.
- Leadership and Trust
The adherence to the ethical values has cemented Tata’s position as a valued leader. The integrity standards followed by the group have set a new benchmark for it. The brand is the blend of leadership and trust.
Different Types of Funds by Tata Mutual Fund
Different types of mutual funds offered by TMF are mentioned below:
A solution-based mutual fund is based entirely on the financial planning. The funds can cater to any need of the investors, which is not restricted to the wedding, education, starting a business, buying a property, or retirement plan to secure their financial future. Under this category, it offers two plans to meet the potential needs of the investors:
- Child Savings Plan
Every parent wants to provide a secure future to their children. Two milestones in the life of their children are getting educated and getting married. The following plans are offered by Tata mutual fund under this scheme:
- Tata Young Citizens’ Fund
- It ensures that the investors fulfill their children’s wish to study overseas or making their wedding dream come true.
- It is a balanced scheme that is open-ended and caters to the children between 3 month and 18 years of age.
- The investments made in the equity-related vehicles, debt related vehicles, and money market vehicles.
- Retirement Solution Plans
Your retirement is a significant phase of your life. In order to live a comfortable and happy life, one must do proper investment planning.
- Tata Retirement Saving Fund
This plan is formulated to fulfill the investment needs of various investors on the basis of the stage of their risk and life. This scheme has three plans under it:
- Progressive Plan - It involves high risk
- Moderate Plan - It involves high risk
- ConservativePlan - It involves moderate risk
With the help of the Auto Switch feature, investors can juggle in between the schemes whenever they reach a certain age, which is necessary for switching between plans. In order to switch from Moderate Plan to any other plan, one has to be 45 years old, and to make a shift to the Conservative Plan, one has to be 60 years old.
- Large Cap
These funds make investments in large corporations and that are lesser volatile, as these are ideal for the investors having a low-risk appetite. Tata Pure Equity Fund concentrates on making the investment in the undervalued and strong big corporations.
This Investment is made in small to large companies. It is suitable for the investors who are seeking long-term cap appreciation. This category includes 4 types of Tata mutual funds:
- Tata Equity P/E Fund - Under this scheme, minimum 70 percent of the share is invested in the equity instruments.
- Tata Dividend Yield Fund - These stocks have high yielding dividend rate.
- Tata Ethical Fund - These funds are invested in the equity and equity-related vehicles of Shariahprinciples compliant companies and those allowed under the principle of Shariah.
- Tata Equity Opportunities Fund -These funds are invested in the equity and equity vehicles of the well-researched growth and value-related companies.
- Mid-Cap Funds
Under these tata mutual fund schemes, the funds are invested in small to medium scale corporations. The investors can make the investment in the corporations that are not yet recognized by the share market but are eligible to grow and expand.
It is a highly risky scheme and it is ideal for the investors looking forward to long-term cap appreciation. Tata Mid-Cap Growth Fund is an equity fund that is open-ended.
- Sectoral Funds
Sectoral funds are restricted to the stocks of a specific sector or industry. Tata Infrastructure Fund is the ideal option for the investors who look forward to the long-term cap appreciation. These funds make investments in the equity and equity-related vehicles of corporations of infrastructure sector of India. It is a highly risky investment scheme.
- ELSS Funds
It is an acronym for Equity Linked Saving Scheme Funds. It is a tax saving scheme and has the lowest freezing period of 3 years. The investors can earn cap appreciation on both mid and long-term schemes simultaneously to enjoy tax deductions. Tata Tax Saving Fund is a highly-risky scheme, as it makes the investment in the equity and equity-related vehicles.
- Index Funds
These funds aspire to multiply the performance of the NSE Nifty or BSE Sensex. It comprises stock that includes the index. The returns on investment are lesser equivalent than the index. Tata Index Fund Nifty A reflects NIFTY and makes the investment in the stocks that include CNX NIFTY Index. Tata Index Fund Sensex A mirrors S&P BSE Sensex and makes investments in the stocks that include the index. This is a highly risky investment scheme.
- Liquid Funds
These investments revolve around the short-term money and debt vehicles. It is Ideal for the investors who look forward to making an investment in the idle saving that gives them liquidity stability and liquidity. Under this category, 3 types of funds are offered by Tata.
- Tata Liquid Fund - It is suitable for the investors who like to make more money as compared to their general savings bank account.
- Tata Liquidity Management Fund - It is suitable for the investors looking forward to gaining returns on the funds that they are having in their savings and current accounts.
- Tata Money Market Fund - It is ideal for the investors whose risk appetite is low and want minimized risk. These Tata Mutual funds are invested in the money market vehicles.
- Short Term Funds
In this Tata mutual fund scheme’s, an investment is made solely in the short-term debt vehicles. Under this category, three types of funds are offered:
- Tata Floater Fund - It involves low-risk and is a perfect option for the investors looking for accrual returns.
- Tata Short-Term Bond Fund - These funds aspire to add liquidity to the debt portfolio along with money market vehicles. This is the ideal option for the investors who are interested in having accrual income.
- Tata Treasury Manager Fund - This is predominant in the domain of debt and money market. It is ideal for the investors who wish to make investments in the debt vehicles for a short-term and those who don’t want to invest in the government securities.
- Income Funds
These funds aspire to generate steady and regular income. These funds have a high average maturity rate. The funds offered under this category are:
- Tata Income Fund - It is suitable for the investors looking for accrual returns, longer investment period, whose risk appetite is higher and are not afraid of taking risks.
- Tata Income Plus Fund - It is a tax-effective fund and is suitable for the investors aiming at the cap appreciation opportunities.
- Dynamic Bond Funds
These funds make changes in the exposure of both long and short terms, which depends on the anticipated rate of interest. Tata Dynamic Bond Fund deals with maturities as per the fund managers’ style. This is the ideal mutual fund option by Tata for the investors who are interested in fetching active rate of interest and handling risk management for the investors seeking capital appreciation and accrual income.
- Gilt Funds
These funds make investments in the government securities. In addition to that, they have minimum credit risk because of the support of the government. There are 3 varieties of Tata mutual funds under this category:
- Tata Gilt Mid-Term Fund - It is a perfect option for the investors whose risk threshold is low and want to minimize the risk involved. As an add-on, it provides cap appreciation in the mid-term.
- Tata Gilt Securities Fund - It is the ideal option for the investors who look for long-term income along with capital appreciation.
- Tata Gilt Short Maturity Fund - It is an ideal option for the investors who are aiming at the accrual income in short-term along with the cap appreciation opportunity. It provides lesser credit risk and interest.
- Other Funds
- Tata Fixed Income Portfolio Fund- It is suitable for the investors aiming at making investments in the debt funds having various maturities and the investors wanting to make regular investments in the maturities.
- Tata Floating Rate Fund- These are the long-term plans that make the investment in the money market and floating rate securities. It is the option particularly ideal for the investors who wants to invest their money in the longer maturities that offer a lower rate of interest.
These Tata mutual funds make the investment in debt as well as in equity vehicles.
- Equity oriented Funds
Minimum 65 percent of the funds are invested in the equity vehicles and the remaining funds are invested in the debt instruments. It is the ideal option for the investors that have moderate risk appetite. Tata Balanced Fund is suitable for equity as well as for debt market and that too in a solo fund. The investors can have the tax deductions from the equity fund.
- Debt oriented Funds
Majorly, these funds make the investment in debt vehicles and the remainder is invested in the equities. These funds are suitable for the investors who have a low-risk appetite and they want to minimize their risk level. In this category, two types of funds are offered:
- Tata MIP Plus Fund- These funds allow a regular monthly flow along with the cap appreciation.
- Tata Monthly Income - These funds are an ideal option for the investors seeking debt investments’ steady accrual returns.
- Equity Funds
These funds are ideal for the investors having long-term capital generation.
- Tata Infrastructure Tax-saving Fund - It is an equity-linked savings instrument (that is close-ended) for ten years, having a freezing time period of three years. It also lets you avail tax benefits under Section 80C.
- Tata Tax Advantage Fund-1 - It is an ELSS for 10 years and it offers tax deductions under Section 80C.
- Debt Funds
The investments are made primarily in the debt along with money market vehicles. It is an ideal option for investors having short to mid-term goals. The investors who aim for regular income zero-down at this scheme.
These funds make the investments in the equity as well as in the debt vehicles. This is a suitable option for the investors who wish for the riskier asset along with safe debt vehicles. Tata SIP Fund Series 3’s prime goal is to accomplish growth goals that are long-term. It is subjected to the market trends.
Why Select Tata Mutual Fund?
There are endless reasons to select Tata Mutual Fund Option. The following reasons are the major ones:
- Tata Mutual Fund has higher equity in India.
- It is the blend of expertise of the service, trust, and fund management that strikes a chord with the potential investors.
- The investors enjoy the higher returns if they have higher risk-appetite. They have their peace of mind, as they are sure that their funds are in safe hands.
- The investors can enjoy tax deductions under Section 80C.
TATA Mutual Funds - FAQs
Q1) How much money can you make from a mutual fund?
There are several factors that affect the return rate of a mutual fund scheme. Below enlisted are few of the factors that can affect the return rate of the mutual fund chosen by you:
- Type of mutual fund chosen by you:
A mutual fund can either be debt, equity or hybrid.
A debt mutual fund may be a long-term or a short term, or even a liquid fund. The return rate in debt funds could vary from 7-10% on annual basis
Similarly, equity funds promise a high return rate over the long-term, be it a large cap, mid cap, or diversified equity fund investment. The return rate on equity funds may range from 14-20% per annum (particularly for long-term investments).
A hybrid fund is a mix of equity as well as debt instruments and provides exposure to both of them. These funds may offer a return rate of approximately 10-14% per annum.
- Style of investment:
If you choose to invest through Systematic Investment Plans, it will average out the risk involved; however, at the same time it will also suppress your return to some extent. You can also get lucky to gain high returns on your investment, if you get to stumble when the market is low.
- Investment Tenure:
Long-term investments offer a bigger chance for funds to perform. On the other hand, short term investments get less time to perform; making them an easy target for negative performance.
You should also consider your financial goals, investment amount you wish to put in the mutual funds and the investment tenure you’re going for before finalizing your choice. In short, your earnings through mutual funds largely depend on several factors which include your risk appetite, size of your investment, investment-tenure and type of investment you’ve chosen.
Q2) Why invest in TATA Mutual Funds?
Tata Mutual Funds is constantly benchmarking its efforts in sync with its customer-centric beliefs. Below-enlisted is the list of key features that establish Tata Mutual Funds as one of the most preferred fund houses in India:
The company strives to deliver consistent results through its value-based investing methodology. The company is constantly working on keeping alive the belief of the late legend, Mr. J.R.D. Tata, that money collected from the people should be given back to them several times over.
Tata Mutual Funds offer a wide array of investment products across various asset classes. The company focuses on providing varying risk parameters that can cater to needs of different individuals and customer segments. In addition to that, the fund house also offers operational flexibility to its customers that will be in sync with their different investment needs.
The company’s commitment to provide its customers with the highest service quality and its intense focus on integrity works in its favor as it helps the corporation to earn the trust of its customers.
Tata Mutual Funds offer a wide range of mutual fund schemes with an aim to provide the customers with a fulfilling & rewarding investing experience.
Q3) How do I buy TATA Mutual Fund plan online?
For existing customers, they can log on to the official website of Tata Mutual Funds at: http://www.tatamutualfund[dot]com/investor/invest-online and buy a fund plan.
Similarly, new investors can go to the same link and select the option of ‘Invest Now’ to buy a mutual fund plan online with the fund house.
Q4) What type of investor should invest in a small cap scheme?
The investors who have higher risk-appetite can consider investing in small cap schemes.
Q5) How much of my returns will be given to my nominees?
As far as the shares & debentures are concerned, the nominee gets all the rights and powers to control the ownership of the shares and debentures after the death of the nominating person.