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The portfolio of Tata Midcap Growth Fund is focused on those companies of India that come in the midcap segment. Currently, 91.36 percent of the investment in this fund is in domestic equity.

If you think that a large amount is needed for investment, then this story of Tata Mutual Fund can change your thinking. Tata Midcap Growth Fund - Regular Plan, a scheme of Tata Mutual Fund, has proved that regular small savings can also create a big fund in the long term. If someone had done a SIP of 1,000 every month in this fund for 30 years, then today his value would have been more than 1.02 crores.

The beginning and long journey of the fund

Tata Midcap Growth Fund was started on 1 July 1994 and has now completed its 30 years. It is one of the oldest midcap funds in India. The objective of this fund is to give investors better returns in the medium to long term by investing in midcap companies.

Great returns in 30 years

This fund has given an average annual return of 13.23 percent since its launch. At the same time, annualized returns of 14.91 percent in 10 years, 16.51 percent in 20 years, and 17.92 percent in 30 years through SIP have been received. This means that if someone had invested a lump sum amount of 1,00,000 30 years ago, then today that investment would have become 41.58 lakhs.

Fund portfolio and investment strategy

The portfolio of Tata Midcap Growth Fund is focused on Indian companies that fall in the midcap segment. Currently, 91.36 percent of this fund is invested in domestic equity, out of which 14.43 percent is in largecap, 46.52 percent in midcap, and 14.58 percent in smallcap stocks.

Top holdings include Max Financial Services (3.77 per cent), Alkem Laboratories (3.07 per cent), Jubilant Foodworks (2.86 per cent), Lupin (2.79 per cent), and Aurobindo Pharma (2.73 per cent). It has a bias towards healthcare and consumer sectors.

Balance of risk and stability

The fund has a standard deviation of 16.02 per cent, which indicates that volatility is moderate. Sharpe Ratio of 0.77 indicates that returns are decent compared to risk. Its Beta is 0.91, which means that the fund is slightly less volatile than the market. However, Alpha is -1.14, which indicates that the fund has lagged its benchmark slightly.

Who should invest?

This fund is suitable for investors who are willing to invest for 3, 4 years or more and who expect high returns. Midcap funds are characterized by high volatility, but can give good returns in the long term.

Take these precautions before investing

The important thing to note is that past performance is not a guarantee of future. Market fluctuations and policy changes can affect the performance of the fund. Therefore, before investing, consult a SEBI-registered financial advisor.

Disclaimer: (The information provided here is for information purposes only. It is important to mention here that investing in the market is subject to market risks. Always consult an expert before investing as an investor. India Employment News never advises anyone to invest money here.)