Tata Mutual Fund has been a consistent wealth generator for its investors, especially through two of its oldest schemes that have given long-term investors impressive returns. If you had been investing just Rs 5,000 per month through a Systematic Investment Plan (SIP) in these funds for the last 30 years, your wealth today would be in crores. Here’s a look at how Tata Midcap Growth Fund and Tata Large & Midcap Fund have performed, making them leaders in SIP returns.
Tata Midcap Growth Fund: Turning Rs 5,000 SIP Into Rs 5.63 Crore
Tata Midcap Growth Fund, launched in 1994, has been a standout performer. For investors who started a monthly SIP of Rs 5,000 right from its inception, the returns have been extraordinary. With an annualized return of 18.39%, the value of such an investment after 30 years would now be over Rs 5.63 crore.
SIP Calculation for Tata Midcap Growth Fund:
- Monthly SIP: Rs 5,000
- Total Investment Over 30 Years: Rs 18,00,000
- Value After 30 Years: Rs 5,63,04,510
- Annualized Return: 18.39%
This highlights the wealth-building power of a disciplined, long-term SIP strategy in a high-performing fund.
Lump Sum Returns:
For those who prefer lump sum investments, the fund has also delivered strong performance over the years:
- 1 Year Return: 44.63%
- 3 Year Return: 21.40%
- 5 Year Return: 26.93%
- 20 Year Return: 18.54%
Key Details of Tata Midcap Growth Fund:
- Total Assets (as of August 31, 2024): Rs 4,514 crore
- Expense Ratio: 1.87%
- Minimum SIP: Rs 100
- Benchmark: NIFTY Midcap 150 TRI
Top Holdings:
- Aurobindo Pharma
- Alkem Laboratories
- Cummins India
- Muthoot Finance
- Max Financial
Tata Large & Midcap Fund: Rs 5,000 SIP Grows to Rs 4.76 Crore
Another top-performing scheme is the Tata Large & Midcap Fund, which has provided investors with an annualized return of 16.80% over 30 years. Investors who started a monthly SIP of Rs 5,000 in this fund when it launched in 1993 would now have an investment worth Rs 4.76 crore.
SIP Calculation for Tata Large & Midcap Fund:
- Monthly SIP: Rs 5,000
- Total Investment Over 30 Years: Rs 18,00,000
- Value After 30 Years: Rs 4,75,64,747
- Annualized Return: 16.80%
This fund has also been a strong performer, helping investors grow their wealth significantly over three decades.
Lump Sum Returns:
The lump sum returns for this fund have also been impressive over various periods:
- 1 Year Return: 34.27%
- 3 Year Return: 17.76%
- 5 Year Return: 21.53%
- 20 Year Return: 16.94%
Key Details of Tata Large & Midcap Fund:
- Total Assets (as of August 31, 2024): Rs 8,412 crore
- Expense Ratio: 1.76%
- Minimum SIP: Rs 100
- Benchmark: NIFTY Large Midcap 250 TRI
Top Holdings:
- HDFC Bank
- Varun Beverages
- Reliance Industries
- PI Industries
- SBI
Why These Tata Funds Stand Out
Both Tata Midcap Growth Fund and Tata Large & Midcap Fund have consistently provided investors with solid returns over the long term. Their strong performance is evident in both SIP and lump sum investments, making them ideal for long-term investors who can handle the ups and downs of the equity market. With disciplined monthly investments, investors have been able to grow their wealth into multi-crore figures over 30 years.
These funds cater to those with a long-term investment horizon, offering an excellent opportunity for wealth creation through systematic investing. However, as with all equity investments, it’s important to keep in mind the associated risks and consult with a financial advisor to make informed decisions.
(Disclaimer: This is purely informational and not a recommendation. Past performance is not indicative of future results. Consult with your financial advisor before investing.)
