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Tata Balanced Fund

Nature of fund: Open-ended Balanced scheme.

Investment objective: The Tata Balanced Fund aims to find the optimal combination of equity and debt related investments to provide maximum returns while also efficiently managing the fund’s volatility. This scheme actively manages the combination and balance of equity and debt instruments depending on ever-changing market conditions and the outlook of the fund managers.

Fund information:

Inception date 8th October, 1995.
CRISIL rank (as in June, 2015)

CRISIL Rank 1 in the Balanced Funds category.

CRISIL Rank 1 in the Consistent Performers – Balanced Funds category.

Plans
  • Regular.
  • Direct.
Options
  • Growth.
  • Dividend.
  • Monthly Dividend.
Schemes
  • Tata Balanced Regular Growth Fund.
  • Tata Balanced Regular Dividend Fund.
  • Tata Balanced Regular Monthly Dividend Fund.
  • Tata Balanced Direct Growth Fund.
  • Tata Balanced Direct Dividend Fund.
  • Tata Balanced Direct Monthly Dividend Fund.
Entry load None.
Exit load For exit within 1 year from the date of allotment = 1.00%.
Minimum investment
  • Rs.5,000. (in multiples of Re.1).
  • Additional Investment: Rs.1,000 (in multiples of Re.1).
SIP Monthly
  • Minimum Rs.1,000 (in multiples of Re.1) thereafter for minimum six months.
  • Minimum Rs.500 (in multiples of Re.1) thereafter for minimum one year.
Quarterly
  • Minimum Rs.1,000 (in multiples of Re.1) for 6 instalments.
  • Minimum Rs.1,500 (in multiples of Re.1), for 4 instalments.
Product label – Risk and target investors Moderately High Risk.Target investors are those who seek:
  • Long term capital appreciation.
  • Investments predominantly in equity and equity related instruments and a portion (of about 25% - 35%) in fixed income securities.
Benchmark CRISIL Balanced Fund
SWP Yes.
  • In a monthly or quarterly frequency.
  • Minimum withdrawal amount = Rs.500.
STP Yes
Redemption Rs.500 or 50 units or account balance (whichever is lower).
Taxation (on investment and on redemption) The tax implications of being associated and invested in this mutual fund must be discussed at length with your tax advisor.

Fund manager

Mr. Akhil Mittal

With over 11 years of experience in the industry, Mr. Akhil Mittal joined Tata Asset Management in 2014, bringing with him a wealth of knowledge and experience. In 2004, he started his career at Rallis India’s treasury department. Two years later in 2006, he took on a job in the corporate treasury and resources department at Edelweiss Securities Ltd. where he was in charge of resource mobilization, working capital management, etc. His first role as a fund manager was at Canara Robeco Asset Management Company – looking after fixed income funds from September 2008 to November 2010, and again from March 2011 to June 2014. He has an unquantifiable knowledge of the workings of funds and the financial markets in addition to his professional qualifications which include a Bachelor’s degree in Commerce and an MBA from University Business School.

Investment philosophy

  • To minimize potential volatility through investments in equities and debt instruments alike.
  • To actively manage and keep tabs on the performance of different investments under the fund to ensure optimal use of resources.
  • To provide income distribution and / or medium to long term capital gains.
  • To always emphasize the importance of capital appreciation.
  • To invest primarily in equity and equity-related instruments.
  • To invest around 25% - 35% in fixed income securities.

Portfolio – Top 10 Holdings

As on July 31st, 2015:

Equity Sector Percentage of AUM
HDFC Bank Ltd. Banking / Finance 4.00
Axis Bank Ltd. Banking / Finance 3.44
HCL Technologies Ltd. Technology 2.99
Power Grid Corporation of India Ltd. Utilities 2.55
Glennmark Pharmaceuticals Pharmaceuticals 2.42
Asian Paints (India) Ltd. Chemicals 2.12
Maruti Suzuki India Ltd. Automotive 2.08
Kotak Mahindra Bank Ltd. Banking / Finance 2.00
Sadbhav Engineering Ltd. Engineering 1.91
Yes Bank Ltd. Banking / Finance 1.59

Risk measures:

Sharpe Ratio 0.40
Alpha N/A
Beta 0.99
Standard deviation 11.85%

Performance

AUM (as on 31st July, 2015) Rs.4,165.86 crores.
NAV (as on 2nd September, 2015)
  • Tata Balanced Regular Growth Fund = 173.87.
  • Tata Balanced Regular Dividend Fund = 80.08.
  • Tata Balanced Regular Monthly Dividend Fund = 70.06.
  • Tata Balanced Direct Growth Fund = 176.55.
  • Tata Balanced Direct Dividend Fund = 81.53.
  • Tata Balanced Direct Monthly Dividend Fund = 71.32.
Returns and benchmark comparison
Date Scheme returns CRISIL Balanced Fund Index
Since Inception (till 31st July, 2015) 19.44% 11.09%
5 year 22.72% 12.20%
3 year 29.28% 14.69%
1 year 19.20% 6.37%
Expenses
Daly Net Assets Tata Balanced Fund expenses
First 100 crores 2.70%
Next 300 crores 2.45%
Next 300 crores 2.20%
Balance Assets 1.95%

Expert view of the fund + outlook

This hybrid fund invests in both equities and debt instruments in order to maintain the balance and protect itself from market volatility. Currently, it has over 74.79% exposure to equity and 22.70% exposure to debt-related investments. Large companies tend to be more immune to shifts in market trends than smaller ones, and this fund invests 52.96% of its funds in large sized companies and 33.84% of the funds in mid-sized companies. Smaller companies are invested in up to 8.16% currently. If you’ve already invested in this fund, keep a watchful eye on its performance, as it is a well performing fund but invests highly in equities. If you’re a new investor – you can skip over this fund and find another fund that you won’t have to monitor as much as this one.

How to apply

You can invest in this fund online through the Tata Mutual Funds website, or you can physically enter any one of the Tata Mutual Funds offices in your city to be a part of this fund. You can also request a call back from the company, and an executive will get in touch with you and guide you through the application process.

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Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

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