Tata Large and Mid Cap Fund: What Makes It the Best Option for Portfolio?

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Overview of Tata Large and Mid Cap Fund

The Tata Large and Mid Cap Fund has emerged as a robust option for investors aiming for long-term capital appreciation. Its well-researched portfolio of large and mid-cap stocks has consistently delivered impressive returns.

This scheme was established on 31st March 1993 and since then it has generated 13.35% returns. Withholding an AUM (Asset Under Management) at Rs.7283.94 Crores as of 31.05.24. While keeping a strong track record, it gives a lot of growth potential to its investors.

Here’s a deeper dive into why it could be a valuable addition to your investment portfolio:

How Consistent is the Performance of Tata Large and Mid Cap Fund?

One of the standout features of the Tata Large and Mid Cap Mutual Fund is its consistent performance. As of May 31, 2024, the fund has generated a 5-year Compound Annual Growth Rate (CAGR) of 20.21% for the direct plan and 18.85% for the regular plan. This track record demonstrates the fund’s ability to navigate various market conditions effectively, providing wealth generation for investors over the long term. The fund’s consistent performance across different market cycles underscores its resilience and effective management strategy.

Outperformance Relative to Benchmarks of Tata Large and Mid Cap Fund

The Tata Large and Mid Cap Fund has a history of outperforming its benchmark, the Nifty Large Midcap 250 TRI. As of May 31, 2024, the fund’s 1-year return was 33.18% for the direct plan and 32.79% for the regular plan, significantly surpassing the benchmark’s returns of 41.14% and 40.86%, respectively. This consistent outperformance highlights the fund’s ability to generate alpha, offering investors returns that exceed the market average. It reflects the fund’s strategic stock selection and effective portfolio management.

How does Tata’s Large and Mid Cap Fund Diversify its Portfolio?

Broad Sector and Stock Diversification

The fund maintains a well-diversified portfolio across various sectors and stocks, ensuring a balanced investment approach.

As of June 2024, the top holdings include prominent companies such as:

  • HDFC Bank
  • Varun Beverages
  • Reliance Industries
  • State Bank of India

Strategic Sector Allocation

The fund is strategically invested across multiple sectors to optimize growth potential and risk management:

  • Financials: Includes investments in leading banks and financial institutions.
  • Consumer Discretionary: Focuses on companies that benefit from consumer spending and economic growth.
  • Energy: Invests in major energy producers and related companies.
  • Materials: Includes investments in companies dealing with raw materials and manufacturing.

Mitigation of Concentration Risk

  • Diversifying investments across different sectors helps mitigate concentration risk, reducing the impact of poor performance in any single sector.
  • This strategy ensures that the fund is not overly reliant on the success of one particular sector or a few companies.

Enhanced Risk-Adjusted Returns

  • By spreading investments across various sectors and stocks, the fund enhances its risk-adjusted returns, offering a more stable performance over time.
  • This approach balances potential high returns from specific sectors with the stability provided by more conservative sectors.

Reduced Vulnerability to Market Volatility

  • The diversification strategy reduces the fund’s vulnerability to sector-specific downturns and market volatility.
  • In times of economic fluctuations, the negative performance of one sector may be offset by positive performance in another, providing a buffer against significant losses.

In summary, the Tata Large and Mid Cap Scheme’s diversified portfolio, with strategic sector and stock allocation helps mitigate risks, enhance risk-adjusted returns, and reduce vulnerability to market volatility, making it a robust choice for long-term investors.

How is the Tata Large and Mid Cap Fund Management?

The Tata Large and Mid Cap Mutual Fund benefits from experienced management under Sonam Udasi, who has been with the fund since its inception in 2013. Udasi’s strong track record in managing equity funds and his expertise in stock selection and portfolio construction have been instrumental in the fund’s success. Additionally, the fund leverages the extensive research capabilities and resources of Tata Mutual Fund, one of India’s leading asset management companies. This combination of experienced management and robust research support ensures informed and strategic investment decisions.

Tata Large and Mid Cap Fund Gives Potential for Long-Term Growth

The outlook for the Indian economy remains positive, with expectations of continued recovery in 2024. This provides a favourable backdrop for large and mid-cap stocks. As the economy grows, companies in these segments are likely to benefit from increased consumer demand, higher capital expenditures, and improved profitability. The Tata Large and Mid Cap MF is well-positioned to capitalize on these growth opportunities, offering the potential for substantial long-term returns to investors.

What are the Risks and Considerations for Investors of Tata Large and Mid Cap Fund?

Like any equity fund, the Tata Large and Mid Cap Fund carries inherent market risks and is subject to volatility. Investors should be prepared for potential fluctuations in the fund’s value and should have a long-term investment horizon of at least 5 years to fully benefit from the fund’s potential. It’s also important to consider factors such as changes in the regulatory environment, global economic conditions, and sector-specific developments, which could impact the fund’s performance.


In conclusion, the Tata Large and Mid Cap Mutual Fund’s consistent performance, ability to outperform benchmarks, and diversified portfolio.

For a disciplined and flexible portfolio, include this scheme in your portfolio via a SIP plan. It will help reduce the market volatility and would increase the profits as well.

Managing an experienced management team makes it a compelling choice for investors seeking long-term capital appreciation. However, as with any investment, it is crucial for investors to carefully assess their risk tolerance and investment objectives before committing to the fund. With a strategic approach and a long-term perspective, the Tata Large and Mid Cap Scheme has the potential to be a valuable component of a diversified investment portfolio.


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