Old became gold: Earned 5 crores from SIP of Rs 5000, 31 year old Tata Group scheme did wonders

Return Machine Scheme : Tata Large and Midcap Fund, one of the oldest mutual fund schemes in the country, has proved to be a return machine for investors. Since its launch, the performance of this fund has been strong most of the time in the 31 years. The annualized return of SIP in 31 years has been more than 16 percent per annum (SIP Return). Those who would have continued SIP of Rs 5000 in this fund from the beginning would now have a fund of more than Rs 5 crore. Whereas in 31 years, not even 20 lakhs had to be invested. It can be said that this scheme of Tata Group has made investors rich.

This technique will give you maximum returns on FD, interest in banks has reached 9 to 9.50%

Return Calculation

Tata Large and Midcap Fund was launched in 1993. Since its launch, this fund has consistently performed well (Top Performing Mutual Funds). According to the return data available on Value Research, the SIP return of this fund has been 16.1 percent annually in 31 years.

Annualised return: 16.1 per cent
Monthly SIP: Rs 5000
Duration: 31 years
Total investment in 31 years: Rs 19,60,000 (Rs 19.60 lakh)
Value of SIP after 31 years: Rs 5,12,03,803 (Rs 5.12 crore)
Net profit: Around Rs 5 crore

Guaranteed income of Rs 6 lakh every year, deposit the funds in these 2 government accounts after retirement

Long term or short term: Best in giving returns

Due to its excellent portfolio management, Tata Large and Midcap Fund has performed well not only in the long term but also in the short term. The annualized returns of this scheme have been high in 1 year, 3 years, 5 years, 7 years and 10 years. In the long term, it has proved to be a return machine.

Return on lump sum investment in 1 year: 33.07%
Return on lump sum investment in 3 years: 19.64%
Return on lump sum investment in 5 years: 19.78%
Return on lump sum investment in 7 years: 15.95%
Return on lump sum investment in 10 years: 15.86%

Expense Ratio and Investments of the Fund

Launch Date : March 31, 1993
Total Assets: Rs 7,286 crore (31 May 2024)
Expense Ratio: 1.79% (31 May 2024)
Minimum lump sum investment: Rs 5,000
Minimum SIP: Rs 100
Risk Grade: Below Average

Gold: You can earn 33 lakhs in 17 years by investing only 5000 rupees per month, this gold scheme is amazing

Portfolio of the fund

Allocation to equity: More than 95 per cent

Key sectors for investment: Financial, Industrial, Materials, Consumer Discretionary, Technology

Key stocks in the portfolio: HDFC Bank, Varun Beverages, Reliance Industries, SBI, ICICI Bank, IDFC First Bank, Cummins India, Bharti Airtel, HDFC AMC, Tata Motors

Old fund becomes gold for investors

This fund has proved the saying ‘old is gold’ right. Some equity mutual fund schemes in the country have completed 30 years (Oldest Mutual Funds). This scheme of Tata Group is also included in these. If we look at the returns it has given since its launch, it has been on top of the return chart. Investors have got the full benefit of the power of compounding in this fund.

NPS: This pension scheme gives 5 big benefits to investors even before retirement, do you know

What is a Large and Midcap Fund

Large and Midcap Fund invests in large cap stocks and midcap stocks. It can provide stability to an investor’s portfolio as well as give better growth. While large cap stocks provide stability to the portfolio, midcaps can give high returns when the market booms. Large and Midcap Fund focuses on the stocks of 250 companies. Of these, the top 100 companies in terms of market capitalization come under large cap, while the next 150 companies come under mid cap.