L&T Hybrid Equity Fund Vs Tata Hybrid Equity Fund

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.

About L&T Hybrid Equity Fund (Erstwhile L&T India Prudence 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.

About Tata Hybrid Equity Fund (Erstwhile Tata Balanced Fund)

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.

L&T Hybrid Equity Fund Vs Tata Hybrid Equity Fund

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

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.

Performance Section

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.

Yearly Performance Section

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.

Other Details Section

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.

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