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Tata Balanced Fund - Regular Plan

3 Value Research
Change from previous, NAV as on Jan 18, 2018
Category: Hybrid: Equity-oriented
Assets: R 5,875 crore (As on Dec 31, 2017)
Expense: 2.11% (As on Dec 31, 2017)
Investment Objective

The scheme seeks steady returns from debt along with growth from equities instruments. The likely equity to debt investment ratio is 70 to 30. Earlier known as Tata Equity Growth Fund, Tata Twin Balanced has been merged in to this fund.

Fund Managers
+ Murthy Nagarajan since Apr 2017
+ Pradeep Gokhale since Apr 2016
As on Sep 13, 2017

Consistency is the middle name of this balanced fund, which has managed impressive performance amid the swinging markets of the last seven years. It has retained a four-star rating for most of the period since inception due to this quality. It has been among the top ten funds in the balanced category in eight of the last ten years.

The fund manages with a 75-25 equity-debt allocation, with its equity exposure consistently above 70 per cent. Large-cap stocks make up 60-70 per cent of the exposure, with this proportion going up lately.

This is a quality-biased and growth-style fund. Each sector is played through a basket of five-eight companies. The top holdings are capped at 4-5 per cent to reduce concentration and to capture more opportunities.

The debt portion has allocations mainly to G-secs and quality commercial paper, with sub-3 per cent exposure to lower-rated corporate bonds.

The fund's three- and five-year returns have beaten the benchmark by 5-6 percentage points and the category by 1-2 percentage points. But the fund has underperformed in the last one year. The fund didn't fare well in the bear market of 2008, but it navigated 2011 quite well. The ten-year return of 16 per cent compares well even to pure equity funds. In the debt portion, the fund has maintained a slightly longer duration of 6-8 years to make the most of rate falls. This has been toned down lately to less than six years.

A fund that navigates all kinds of markets well and delivers with high predictability.

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