Tata Mutual Fund is among the most experienced fund house in India which is known for the innovative mutual funds which have been strategically designed to allow the investors to reach their financial goals at ease. There are certain schemes offered by Tata Mutual Fund that every investor needs to know.
Tata Retirement Savings Fund
It is one of the best solutions for retirement planning concerns as it aims to provide financial assistance to the investors after their retirement. The fund is strategically designed to allow the investors to create sustainable wealth in the 30 years before the retirement to assist financially for the 30 years after the retirement. The plan is divided into 3 parts which can be manually or auto-switched whenever the investor crosses the age limit for a specific plan. The first plan is named as the progressive plan which is an aggressive scheme and includes equity instruments in greater proportion. The progressive plan of Tata Retirement Savings Fund is switched into a reasonable plan which has a mixture of equity and debt instruments in the portfolio to provide stable gains with decent appreciation. Once the investor reaches the age of 60, the corpus is shifted to a conservative plan which has a debt-oriented portfolio and provides low-risk conservative returns. The fund has a lock-in period of 5 years and charges an exit load of 1% until the investor retires or reaches the age of 60, whichever is first. It has been a successful scheme so far and is expected to fulfil the goals efficiently.
Tata Equity PE Fund (G)
It is a value-oriented mutual fund provided by Tata Mutual Fund which seeks the stocks which have the PE ratio of less than that of BSE Sensex at the time they are bought. The stocks which are selected by the fund manager are available at a cheaper price as the PE ratio is lower, hence it acts as a value-oriented mutual fund. The stocks possess the potential to provide high returns in the long term. It has a decent allocation in the mid and small-cap stocks, but the risk factor is higher than that of the category’s average. In the long term, it has generated some of the best trailing returns in the category. The fund is suitable for investors who can take moderate to high risk to earn high returns in the long term.
Tata Liquid Fund (G)
The liquid fund offered by Tata Mutual Fund has generated better returns than most of the other schemes in the category while the expense ratio is lower than many schemes in the category. The fund has consistently performed well and provided short-term capital appreciation and savings for the investors. The average maturity period of the instruments is higher than the category as the returns on maturity are also higher. It invests in a large number of securities with credit ratings of A1+. It aims to provide capital appreciation within 3 months with high liquidity as there is no exit load on withdrawal.
Tata Treasury Advantage Fund (G)
It is a top performing low duration fund provided by Tata Mutual Fund. It generates slightly higher returns than the liquid fund and is suitable for the investment of 3-6 months. Since inception in September 2005, it has generated 7.95% trailing returns. The securities are of high credit ratings with an average maturity period of 0.72 years and yield to maturity of 8.76%. It is one of the best schemes in the category.
Apart from these schemes, Tata Mutual Fund has introduced various other schemes which have fulfilled the financial goals of the majority of investors by experienced and innovative fund management strategy. The fund managers at Tata MF are professionals and possess remarkable experience in the market.