Table of Contents
L&T Hybrid Equity Fund and Tata Hybrid Equity Fund both the schemes are a part of Balanced Fund. Also known as hybrid funds, these schemes are equity-oriented balanced funds. These schemes invest their pooled corpus in a combination of equity and fixed Income instruments with more concentration on equity investments. A minimum of 65% or more of the pooled money is invested in equity instruments. Balanced Funds are a good investment option for individuals who are looking for Capital growth in the long-term along with regular income. Balanced funds in most instances have given good returns in the long-run. Though both L&T Hybrid Equity Fund and Tata Hybrid Equity Fund belong to the same category, yet; there are numerous differences between the schemes. So, let us understand the differences between L&T Hybrid Equity Fund Vs Tata Hybrid Equity Fund.
L&T Hybrid Equity Fund (earlier known as L&T India Prudence Fund) is an open-ended hybrid fund of L&T Mutual Fund. It was incepted on February 07, 2011 and its objective is to earn long-term capital growth and regular income from a diversified Portfolio of consisting of both equity and Fixed Income instruments. As per the scheme’s objective, it invests around 65-75% of its fund money in equity-related instruments and the remaining in fixed income instruments. It uses S&P BSE 200 TRI Index and CRISIL Short Term bond Fund Index as a benchmark to build its portfolio. As on March 31, 2018, some of the constituents of L&T Hybrid Equity Fund included HDFC Bank Limited, The Federal Bank Limited, Tata Consultancy Services Limited, and Engineers India Limited. L&T Hybrid Equity Fund is jointly managed by Mr. S. N. Lahiri, Mr. Sriram Ramanathan, and Mr. Karan Desai.
Tata Hybrid Equity Fund's (earlier known as Tata Balanced Fund) objective is to provide its investors regular income or Capital Gains along with always emphasizing on the importance of capital appreciation. The scheme was launched in the year 1995 and uses CRISIL Hybrid 35+65 – Aggressive Index as its benchmark to construct its portfolio. Tata Hybrid Equity Fund is jointly managed by Mr. Pradeep Gokhale and Mr. Murthy Nagarajan. Some of the top holdings of Tata Hybrid Equity Fund as on March 31, 2018, included Reliance Industries Limited, Kotak Mahindra Bank, Zee Entertainment Enterprises Limited, and Infosys Limited. This scheme is suitable for individuals seeking long-term capital gains by Investing a major portion in equity investments and remaining in fixed income investments.
Though both L&T Hybrid Equity Fund and Tata Hybrid Equity Fund belong to the same category, yet; they differ on account of numerous parameters such as NAV, Fincash Ratings, and much more. So, let’s understand the differences between L&T Hybrid Equity Fund Vs Tata Hybrid Equity Fund on the aforesaid parameters that are divided into four sections, namely, basics section, performance section, yearly performance section, and other details section.
Basics Section refers is the first section in comparison of both the schemes. The parameters forming part of basics section include Fincash Ratings, Current NAV, Scheme Category, and so on. The comparison of current NAV reveals that there is a significant difference between the NAV of both the schemes. As on April 18, 2018, the NAV of L&T’s scheme was approximately INR 26 while of Tata’s scheme was approximately INR 207. The comparison of Fincash Rating shows that L&T Hybrid Equity Fund is a 4-Star Rated Fund and Tata Hybrid Equity Fund is a 3-Star Rated Fund. With respect to the scheme’s category, it can be said that both the scheme belongs to the same category, that is, hybrid balanced – equity. The table given below shows the comparison of basics section.
Parameters Basics NAV Net Assets (Cr) Launch Date Rating Category Sub Cat. Category Rank Risk Expense Ratio Sharpe Ratio Information Ratio Alpha Ratio Benchmark Exit Load UTI Long Term Equity Fund
Growth
Fund Details ₹214.263 ↓ -0.17 (-0.08 %) ₹4,121 on 31 Aug 24 15 Dec 99 ☆☆ Equity ELSS 29 Moderately High 1.9 2.13 -1.01 -3.75 Not Available NIL Tata Hybrid Equity Fund
Growth
Fund Details ₹442.798 ↓ -0.11 (-0.02 %) ₹4,268 on 31 Aug 24 8 Oct 95 ☆☆☆ Hybrid Hybrid Equity 22 Moderately High 0 2.21 0.1 -2.81 Not Available 0-365 Days (1%),365 Days and above(NIL)
It is the second section in the comparison of both the schemes and it compares the Compounded Annual Growth Rate or CAGR returns between them. These CAGR returns are compared at different time intervals such as 1 Month Return, 6 Month Return, 3 Year Return, and Return Since Inception. The comparison of CAGR returns shows that at many time instances the returns generated by L&T Hybrid Equity Fund is higher as compared to the returns generated by Tata Hybrid Equity Fund. The summary comparison of performance section is tabulated as follows.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch UTI Long Term Equity Fund
Growth
Fund Details -0.6% 3.7% 17.5% 34.2% 13.4% 20.9% 15.2% Tata Hybrid Equity Fund
Growth
Fund Details -0.3% 3.2% 10.7% 26.8% 13% 16.4% 15.2%
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It is the third section in comparison and compares the Absolute Returns for a particular year between both the schemes. The comparison of yearly performance section also reveals that L&T Hybrid Equity Fund has performed better as compared to Tata Hybrid Equity Fund. The table given below gives a summary comparison of the yearly performance section.
Parameters Yearly Performance 2023 2022 2021 2020 2019 UTI Long Term Equity Fund
Growth
Fund Details 24.3% -3.5% 33.1% 20.2% 10.4% Tata Hybrid Equity Fund
Growth
Fund Details 16.2% 7.9% 23.6% 10.9% 6.9%
It is the last section in the comparison of both the sections. Some of the comparable elements forming part of other details section include AUM, minimum SIP and lumpsum investment, and exit load. The AUM comparison reveals that there is a significant difference between the AUM of both the schemes. As on March 31, 2018, the AUM of L&T Hybrid Equity Fund was approximately INR 9,820 Crores while of Tata Hybrid Equity Fund was approximately INR 5,371 crores. The minimum SIP amount for both the schemes is same, that is, INR 500. Similarly, the minimum lumpsum amount is also same for both the schemes, that is, INR 5,000. The summary comparison of other details section is tabulated as follows.
Parameters Other Details Min SIP Investment Min Investment Fund Manager UTI Long Term Equity Fund
Growth
Fund Details ₹500 ₹500 Vishal Chopda - 5.01 Yr. Tata Hybrid Equity Fund
Growth
Fund Details ₹150 ₹5,000 Murthy Nagarajan - 7.42 Yr.
UTI Long Term Equity Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 30 Sep 19 ₹10,000 30 Sep 20 ₹10,312 30 Sep 21 ₹16,986 30 Sep 22 ₹16,616 30 Sep 23 ₹18,662 30 Sep 24 ₹25,722 Tata Hybrid Equity Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 30 Sep 19 ₹10,000 30 Sep 20 ₹9,707 30 Sep 21 ₹14,253 30 Sep 22 ₹14,539 30 Sep 23 ₹16,414 30 Sep 24 ₹21,173
UTI Long Term Equity Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 3.28% Equity 96.63% Debt 0.08% Equity Sector Allocation
Sector Value Financial Services 27.23% Consumer Cyclical 14.76% Technology 10.49% Consumer Defensive 8.84% Industrials 8.06% Health Care 5.94% Basic Materials 5.91% Communication Services 5.72% Utility 4.37% Energy 2.75% Real Estate 2.58% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 07 | 5321747% ₹295 Cr 2,403,539
↓ -4,657 HDFC Bank Ltd (Financial Services)
Equity, Since 28 Feb 11 | 5001807% ₹290 Cr 1,768,650
↓ -3,465 Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | 5002096% ₹240 Cr 1,232,207
↓ -1,842 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Mar 13 | 5324544% ₹179 Cr 1,123,978 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 10 | 5322153% ₹127 Cr 1,084,411 Reliance Industries Ltd (Energy)
Equity, Since 31 May 24 | 5003253% ₹113 Cr 375,383 Avenue Supermarts Ltd (Consumer Defensive)
Equity, Since 30 Sep 19 | 5403763% ₹113 Cr 228,371 Godrej Consumer Products Ltd (Consumer Defensive)
Equity, Since 31 May 21 | GODREJCP3% ₹109 Cr 736,080 Whirlpool of India Ltd (Consumer Cyclical)
Equity, Since 30 Sep 19 | WHIRLPOOL2% ₹95 Cr 435,852 IndusInd Bank Ltd (Financial Services)
Equity, Since 31 Mar 23 | 5321872% ₹93 Cr 652,920
↑ 14,624 Tata Hybrid Equity Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 4.66% Equity 76% Debt 19.34% Equity Sector Allocation
Sector Value Financial Services 18.27% Industrials 7.95% Technology 6.88% Energy 6.74% Health Care 6.54% Consumer Cyclical 6.43% Consumer Defensive 6.36% Communication Services 5.72% Basic Materials 5.45% Utility 4.21% Real Estate 1.46% Debt Sector Allocation
Sector Value Corporate 9.68% Government 9.65% Cash Equivalent 4.66% Credit Quality
Rating Value AA 2.55% AAA 97.45% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 30 Jun 08 | 5001806% ₹270 Cr 1,650,000
↓ -150,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Jan 16 | 5003256% ₹266 Cr 880,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 May 20 | 5324545% ₹215 Cr 1,350,000 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Aug 17 | TCS4% ₹173 Cr 380,000 State Bank of India (Financial Services)
Equity, Since 29 Feb 16 | 5001124% ₹171 Cr 2,100,000 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Nov 16 | 5005104% ₹160 Cr 431,425
↑ 29,617 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Aug 16 | 5321744% ₹160 Cr 1,300,000 Infosys Ltd (Technology)
Equity, Since 30 Nov 13 | 5002093% ₹121 Cr 620,000 Varun Beverages Ltd (Consumer Defensive)
Equity, Since 28 Feb 19 | 5401802% ₹102 Cr 678,150 PI Industries Ltd (Basic Materials)
Equity, Since 31 Dec 23 | PIIND2% ₹100 Cr 223,500
To conclude in a nutshell, it can be said that there exist numerous differences between both the schemes on various parameters. Resultantly, individuals should be cautious before investing in any scheme. They should understand the modalities of the scheme completely and check whether their investment objective is in-line with the scheme or not. This will help the investors to accomplish their objectives on time in a hassle-free manner.