24

Mutual Funds

The Economic Times Wealth, August 1-7, 2016

TATA BALANCED FUND

A consistent outperformer
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.

With a 10-year return of 16.42%, the fund has outperformed the category
(average return: 12.01%) and the benchmark index (10.27%) by a wide margin.

BASIC
FACTS
DATE OF LAUNCH

8 October 1995

Growth of `10,000 vis-a-vis category and benchmark

WHERE DOES THE

FUND INVEST?

Fund

CATEGORY

`45,724

Hybrid

Portfolio asset
allocation

TYPE
Category

AVERAGE AUM
`6,280.73 cr
BENCHMARK

`10,000

7.45%
SMALL CAP

Crisil Balanced Fund

Aggressive Index

59.89%

32.66%
Index

`26,572
July 2008

July 2010

July 2012

July 2014

July 2016
As on 26 July 2016

The fund has outperformed both benchmark

and peers comfortably over the past decade.

WHAT IT
COSTS
NAVS*
GROWTH OPTION
`180.52

Fund
Crisil Balanced Fund Aggr. Index
Category average

12.03
9.51

5.46

4.68 4.99

Top 5 sectors in portfolio (%)

16.72
10.03

Financial
Construction
Healthcare

MINIMUM SIP AMOUNT

Chemicals

6.70
6.55
5.61

`500

The funds equity portfolio is tilted towards

financial and construction firms.

EXIT LOAD

16.30

12.83

11.80

The fund has a higher mid-cap tilt

compared to many of its peers.

Technology

23.57

12.96 12.78

71.29%

`5,000

2.24
18.37

Equity

MINIMUM INVESTMENT

EXPENSE RATIO^ (%)

1% for redemption
within 365 days
*As on 26 July 2016
^As on 31 March 2016

Top 5 stocks in portfolio (%)

3.74

HDFC Bank

2.61
2.29
2.08
1.86

Infosys
Yes Bank
Power Grid Corp.

6 month

1 year

3 year

5 year

HCL Technologies

As on 26 July 2016

The fund has shown impressive performance over longer time frames.

Growth Blend Value

INVESTMENT STYLE

LARGE CAP

MID CAP

DIVIDEND OPTION
`76.57

Annualised performance (%)

Small Medium Large

Equity-oriented

`31,096

July 2006

Fund style
box

Debt & Cash

28.71%

CAPITALISATION

HOW HAS THE FUND PERFORMED?

With around 80 stocks, the funds equity

portfolio is diversified to the hilt.

Yearly performance (%)

HOW RISKY IS IT?

49.61

Fund

Category

Index

11.37

10.61

0.98

0.59

16.40

11.32

40.58
Standard Deviation (%) 12.98
25.34
7.54 6.05 5.93
2013

6.97
2014

0.48 3.81
2015

The fund has shown consistency in

outperformance across years.

SHOULD
YOU
BUY?

This fund has been one of the best performers in its category, consistently
ranking in the top percentile for much
of the past decade. The funds equity
exposure is predominantly to large-

6.60 8.21 6.99

2016
As on 26 July 2016

FUND
MANAGER
Pradeep Gokhale (above) and
Akhil Mittal
TENURE: 2 MONTHS / 11 MONTHS
Education: B.com (H), CA and CFA /
B.Com (H) and MBA

caps but, compared to peers, it tilts

more towards midcaps. With around 80
stocks, the equity portion is widely
diversified, and doesnt allow for large
bets on individual stocks. In the fixed

Sharpe Ratio
Mean Return (%)

1.22
20.87

Based on 3-year performance

The funds risk-reward equation

is favourable compared to its peers.

income portion, the fund manager prefers a moderate duration play through
government securities while corporate
bond exposure is mostly in AAA-rated
instruments. The funds risk-reward

All data on this page as on 30 June 2016,

unless specified. Source: Value Research

profile is superior to many of its peers,

although volatility remains on the higher side. A proven track record makes
the fund a compelling bet in the balanced funds category.