This Long Duration Debt Income Fund Has Given Up To 40% Absolute Returns In 5 Year

The primary rationale for investing in debt funds is to obtain a consistent interest income as well as capital appreciation. The interest rate and maturity duration of debt instruments are defined by the issuers. As a result, they are also referred to as 'fixed-income' securities. Here, we are discussing one long-duration Debt Mutual fund from the house of TATA Mutual fund.

Tata Income Fund - Direct Plan - Appreciation

Tata Income Fund Direct-Growth is a Medium to Long Duration Debt mutual fund scheme from the house of Tata Mutual Fund. It is an open-ended medium-sized fund in its category, launched on 01 January 2013. As of 31 January 2022, the fund size or AUM accounts for Rs 54.85 Crores. It has a NAV of Rs 72.083 as of February 25, 2022. The fund has an expense ratio of 1.28%%, which is higher than its category average expense ratio. The fund is currently managed by Akhil Mittal. Rating Agency CRISL has given 2 stars to the fund. 
The ability of the Fund's Direct-Growth plan to provide consistent returns is comparable to that of the majority of funds in its category. It has an average capacity to limit losses in a sinking market. Investors who wish to invest money for a longer length of time but want less risky assets than equities funds might choose to invest in the fund for a long period of time since it offers a decent return on investment over a long period of time. The minimum investment for a lump sum payment is Rs 5000, while the minimum investment for a SIP is Rs 500. There is no lock-in period for the fund. On risk meter, it is a moderate risk fund.

Returns

Tata Income Fund Direct-Growth returns of the last 1-year are 4.92%, which is less compared to its category average in the same period. However, the fund has performed well in 2, 3, and 5-year investments, and given good annualized returns. Since the launch of the, it has delivered 8.26% average annual returns, better than the category average annual returns.

Lump Sum Investment Returns

Period Invested	Absolute Returns	Annualised Returns	Category Avg
1 Year	4.92%	4.92%	5.11%
2 Year	12.88%	6.24%	6.07%
3 Year	27.55%	8.42%	7.43%
5 Year	40.64%	7.05%	6.59%
Since Inception	106.65%	8.26%	7.71%

SIP Returns

Period Invested	Absolute Returns	Annualised Returns
1 Year	1.85%	3.42%
2 Year	4.72%	4.48%
3 Year	9.99%	6.26%
5 Year	19.29%	6.98%

Portfolio

The investing aim of the Scheme is to achieve income distribution/capital appreciation over the medium to long term. The fund's credit record is excellent, suggesting that it has lent to high-quality customers. Because the majority of funds in this category lend to stronger borrowers, the risk of default in this fund is higher than in the category. Power Finance Corpn. Ltd., Indian Railway Finance Corpn. Ltd., SBI Cards & Payments Services Ltd., National Thermal Power Corpn. Ltd., and Rural Electrification Corpn. Ltd. are the fund's top holdings.

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme-related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.