Diversifying your investment portfolio is the need of the hour. If you diversify your funds, you can minimize the risk of losing your financial wealth. One of the ways you can do so is by investing in Tata Mutual Fund Schemes.
These Mutual Fund schemes have been in the market for over 30 years now, since their inception in 1994.
But how can investing in Tata Mutual Funds boost your portfolio? Let’s take a look at that below.
About Tata Mutual Fund Schemes
Tata Mutual Funds is a part of the prestigious Tata Group of Companies. Tata’s Mutual Funds are managed by the Tata Asset Management Limited (TAML). TAML was established in March 1994.
The Tata Mutual Fund:
- Has been in business for 30 years
- Offers various functions such as fund management, fund planning, etc. to its investors.
- Was registered with the Security and Exchange Board of India (SEBI) in June 1995
- Has an AUM of ₹1,61,036.71 crore (as on 30-Jun-2024)
- Offers more than 57 schemes under various plans
- Has won many well-known awards, such as the CNBC TV 18 Mutual Fund Award
It offers the following types of Mutual Funds:
- Tax-saving
- Hybrid
- Debt
- Equity-linked
Who heads the Tata Mutual Fund?
The Tata Mutual Fund Schemes are currently headed by Mr. Prabhit Bhobhe. He joined TAML (Tata Asset Management Limited) in May 2018.
Mr. Prabhit Bhobhe brings a wealth of experience to the table. He:
- Boasts over two decades of experience
- Used to work for 8 years at Citibank , wherein he handled the banking verticals linked with distribution
- Has over 11 years of experience with wealth management, retail liability products, and private banking verticals
- Is a director on the Association of Mutual Funds In India, Tata Pension Management Limited, and Tata Capital PLC boards?
The Tata Mutual Fund has transformed under the able leadership of Mr. Prabhit Bhobhe, as seen below:
- Its AUM experienced a Compounded Annual Growth Rate growth of over 21%, in 2023 which was 7% more than the industry average of 14% for that period. As of 30th June 2023, it had an AUM of ₹1,12,248 crore
- Currently, it has an AUM of ₹1,61,036.71 crore (as of 30th June 2024), implying a 43% growth.
- The introduction of the 4Ps (people, products, partnership, and performance) revolutionized the industry
- About 25 new products have been introduced, which has made investors look more favourably toward the fund
- Digital transformations have transformed how investors access and manage their investments online
- The focus on increasing distributor partnerships has helped it increase its stability and reach in the market
What are the top 5 Tata Mutual Fund Schemes to invest in?
We’ve compiled a list of the top 5 Tata Mutual Fund schemes for you below. This will help you make an informed choice regarding where you should invest your wealth.
The schemes are:
- Tata Balanced Advantage Growth Fund
AUM: ₹9,464.825 crore (as of Jul 31st, 2024)
NAV: ₹20.125 (as of 21st Aug, 2024)
Minimum investment: ₹1,000
Risk: High
5Y return: 14.4%
- Tata Money Market Growth Fund
AUM: ₹24331.849 crores
NAV: ₹4425.0026 (as of 21st Aug, 2024)
Minimum investment: ₹1,000
Risk: Low To Moderate
5Y return: 6.00%
- Tata Ethical Growth Fund
AUM: ₹ 2817.121 crores
NAV: ₹427.8177 (as of 21 Aug, 2024)
Minimum investment: ₹1,000
Risk: Very High
5Y return: 23.5%
- Tata Digital India Growth Fund
AUM: ₹10204.351 crores
NAV: ₹51.2627 (as of 21 Aug, 2024)
Minimum investment: ₹1,000
Risk: Very High
5Y return: 27.8%
- Tata Liquid Fund Growth
AUM: ₹25804.312 crores
NAV: ₹3875.4827 (as of 21 Aug, 2024)
Minimum investment: ₹1,000
Risk: Low to Moderate
5Y return: 5.2%
The sections below explore the process of investing in Tata Mutual Funds.
How can You Invest in Tata Mutual Fund Schemes?
You can invest in Tata Mutual Fund Schemes quite easily if you follow the steps below:
- Choose the relevant website
You must do your research well. For example, you should look for a website with an in-built SIP Calculator. This will allow you to calculate your returns and select your desirable funds.
Once you find the website, select the option that says ‘Invest Now’ or ‘Invest With Us’. On some websites, if you hover over these options, you can see a dropdown menu with various options.
Carefully consider all the options and select the most relevant option as per your needs. If you’re a previous investor, then just click the ‘Login’ option.
- KYC Compliance, Registration & Verification
Input your PAN number and check if it’s KYC Compliant if you’re a first-time investor in Tata Mutual Fund Schemes. Generally, a PAN number is sufficient for this process. However, if it is not KYC-compliant, then you can utilize other SEBI-approved options.
After completing your KYC Compliance, register yourself accordingly. Once you do so, you’re set, as the PAN number will be stored in the relevant database.
- Scheme Selection and Registration
You should carefully choose your scheme, as per your desired objectives. After you have done so, you should enter the following details:
- Scheme name
- Your Nominee details
- The plan type of the Scheme (Direct/Regular)
- A Growth or Dividend Option
- Your Bank account details
- Choosing between the SIP or Lump-sum
You can utilize the website’s in-built sip calculator to see which schemes can benefit you the most.
Additionally, take care to provide the details below if you’re investing in SIPs:
- Start and end date
- Number of investments
- Frequency
- Investment date
- Installment account
- Payment Completion
After inputting all the details, you should proceed with the payment. Remember to perform the necessary actions as per the payment gateway, that is, via Internet Banking or UPI. You can also set up an Auto-pay feature.
What are the benefits of Tata Mutual Fund Schemes?
The key benefits of investing in Tata Mutual Fund schemes are:
- Diversification of Funds
TAML manages a lot of funds under its belt, which allows for the diversification of funds. Hence, Investors have a lot of options.
- Professional handling
This organization employs highly trained and able inventors who take care of your assets, allowing you peace of mind.
- Strong performance
The Tata Mutual Fund is known for its competitive returns and strong market performance. For instance, the Tata Digital India Growth Fund has seen a 5Y return of 27.8%.
- Accessibility
As an investor, you can easily access and view your investments, thanks to their digital database.
Key Takeaways of Tata Mutual Fund Schemes
- Tata Mutual Funds is a part of the prestigious Tata Group of Companies. The various Tata Mutual Fund Schemes are managed by Tata Asset Management Limited (TAML).
- UTI Mutual Funds was registered with SEBI (Securities and Exchange Board of India) on the 1st of February, 2003.
- The Tata Mutual Fund Schemes are currently headed by Mr. Prabhit Bhobhe. He joined TAML (Tata Asset Management Limited) in May 2018.
- The Top 5 Tata Mutual Fund Schemes you can invest in are: Tata Balanced Advantage Growth Fund, Tata Money Market Growth Fund, Tata Ethical Growth Fund, Tata Digital India Growth Fund and Tata Liquid Fund Growth
- You should use your chosen AMC’s in-built sip calculator to calculate your returns