The Tata Mid Cap Growth Fund is a mutual fund that invests in smaller Indian companies.The fund has been able to grow its assets with a strong focus on quality.
The fund invests in companies that have a solid balance sheet, strong revenue streams and earnings growth, and management teams that are committed to turning their businesses around.
The fund is managed by Satish Chandra Mishra & Abhinav Sharma.
What is a mid cap growth fund?
A mid cap growth fund is an investment vehicle that focuses on investing in smaller companies that are expected to experience faster growth than larger companies.
This type of fund is popular with investors who want to take advantage of the opportunities that come with being in a smaller company, as well as those who are seeking more diversification when it comes to their investments.
By investing in a mid cap growth fund, you’re likely to see better returns than you would with a large cap growth fund.
Capital gains
Gains of up to Rs 1 lakh realized from a mutual fund investment are exempt from income tax in the year immediately after the sale of such units.
Remaining gains are taxed subject to a maximum rate of 15%. If the mutual fund units are sold within 1 year from the date of investment, the entire gain is taxed up to the highest rate applicable.
Dividends
Since investors pay taxes on dividends in accordance with their respective tax slabs, their further income is additionally taxed.
Additionally, if an investor’s dividend residual income exceeds INR 5,000 a year, the fund house also deducts a total deductions for income tax (TDS) of 10 from his income before finally distributing the dividends.
What are the benefits of investing in a mid cap growth fund?
There are many benefits to investing in a mid cap growth fund.
These funds typically have higher return potential than other types of funds, but also carry a higher risk.
Mid cap growth funds are typically less volatile than larger caps and therefore provide steadier returns over time.
These funds tend to have a higher relative allocation to smaller companies, which means they are likely to provide better long-term performance than funds that focus exclusively on large companies.
However, this type of risk can also result in greater rewards if the fund is successful in finding good investments.
Finally, mid cap growth funds tend to be less expensive than larger caps, making them a good option for those who want to invest in a variety of securities.
FAQs
Q. Why invest in the Tata Mid Cap Growth Fund?
A. The Tata Mid Cap Growth Fund has been designed to offer high returns and Sharpe Ratio while mitigating downside risk.
Q. What are the risks associated with this investment?
A. The Tata Mid Cap Growth Fund is a balanced fund, meaning that it invests in both stocks and bonds. As such, it is subject to the risk of both big gains and big losses.
Q. How does the fund invest?
A. The fund primarily invests in equities in India and abroad. It also makes use of derivative instruments and mutual funds to gain exposure to various sectors and markets.
Q. How much does the Tata Mid Cap Growth Fund cost?
A. The fee for the fund is 0.75%.
Q. What are the benefits of investing in the Tata Mid Cap Growth Fund?
A. The main benefit of investing in the Tata Mid Cap Growth Fund is that it offers regular monthly distributions. This means that you will always be able to receive your investment plus interest payments. Additionally, the five-year investment horizon gives you plenty of time to maximize your returns.
Q. How much money can I expect to make from investing in the Tata Mid Cap Growth Fund?
A. There is no one definitive answer to this question, as success depends on how well the fund’s investments perform.
Conclusion
The Tata Mid Cap Growth Fund has been a great investment for those who are looking for growth in their portfolio. The fund has outperformed the market in recent years, providing investors with consistent returns.
The fund holds companies from different industries, and can grow and mature with the investor. At a time when many of the larger Indian companies are struggling to remain financially healthy, it is refreshing to see a fund like Tata Mid Cap Growth Fund hold on to its original growth mandate.
