Fincash » Tata Retirement Savings Fund-Progressive Vs Tata Equity PE Fund
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Tata retirement Savings Fund-Progressive Plan and Tata Equity PE Fund both the schemes are part of Tata Mutual Fund and are offered under the same category of diversified equity fund. In simple terms, Diversified Funds are the schemes that invest their corpus in stocks of companies in all Market capitalizations, that is, large-cap, mid-cap, and small cap stocks. These schemes try to exploit the opportunities available in each of these market-cap and earn maximum returns for their customers. Diversified funds generally adopt a value or growth styles strategy of Investing. Diversified funds are generally a good investment avenue for medium or long-term investment. Though both the Mutual Fund schemes are offered by Tata, yet, they differ on the Basis of numerous parameters. So, let’s understand the difference between these schemes through this article.
The objective of Tata Retirement Savings Fund-Progressive Plan is to attain Capital appreciation in the long-term along with Income distribution in the medium to long-term tenure. Based on the Asset Allocation objective of this scheme, it invests around 85-100% of its corpus in equity and equity-related instruments and the remaining proportion in Fixed Income and money market instruments. This scheme is suitable for individuals who are in search of an investment avenue for retirement, follow a life cycle based approach to retirement savings, and investors seeking an alternative to retirement saving avenues. One of the key attributes of this scheme is unique auto-switch Facility through which individuals can adjust the equity-debt proportion of his/her investment. This scheme was launched on November 01, 2011. Tata Retirement Savings Fund-Progressive plan is jointly managed by Mr. Sonam Udasi and Mr. Murthy Nagarajan.
Tata Equity PE Fund is an open-ended diversified equity fund of Tata Mutual Fund. This scheme was launched on June 29, 2004. The scheme strives hard to provide its investors capital appreciation along with reasonable and regular income. This scheme of Tata Mutual Fund invests around 70-100% of its corpus fund in equity and equity-related instruments while the remaining in fixed income instruments to a maximum of 30%. Tata Equity PE Fund is solely managed by Mr. Sonam Udasi. Tata Equity PE Fund adopts the value-conscious style of investing. It aims to invest in good stocks at cheap valuations and not in cheap stocks instead. As on March 31, 2018, some of the top holdings of Tata Equity PE Fund consisted of HDFC Limited, Zee Entertainment Enterprises Limited, Reliance Industries Limited, and Grasim Industries Limited.
Both Tata Retirement Savings Fund-Progressive and Tata Equity PE Fund have a number of differences though they belong to the same category of Equity Funds. So, let us understand the differences between these schemes that are explained with the help of following sections listed below.
Being the first section in the comparison, it includes parameters such as Fincash Rating, Current NAV, and scheme category. To begin with the scheme category, it can be said that both the schemes are a part of the same category, Equity Diversified. Similarly, with respect to Fincash Rating, it can be said that both the schemes are rated as 5-Star schemes. However, the comparison of NAV reveals a drastic difference between the schemes. As on April 26, 2018, the NAV of Tata Retirement Savings Fund-Progressive Plan is approximately INR 29 while of Tata Equity PE Fund is approximately INR 142. The summary of the basics section is tabulated as follows.
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 Tata Retirement Savings Fund - Progressive
Growth
Fund Details ₹47.9482 ↑ 0.23 (0.48 %) ₹1,492 on 31 Jul 23 1 Nov 11 ☆☆☆☆☆ Solutions Retirement Fund 6 Moderately High 2.01 0.94 -1.38 1.63 Not Available 0-60 Years (1%),60 Years and above(NIL) Tata Equity PE Fund
Growth
Fund Details ₹241.99 ↑ 1.05 (0.44 %) ₹6,019 on 31 Jul 23 29 Jun 04 ☆☆☆☆☆ Equity Value 7 Moderately High 1.72 1.46 -0.24 7.18 Not Available 0-18 Months (1%),18 Months and above(NIL)
Being the second section, it compares the Compounded Annual Growth Rate or CAGR returns of both the schemes earned at different time intervals. Some of these timer intervals include 1 Month Return, 6 Month Return, 3 Year Return, and 5 Year Return. The comparison of CAGR returns reveals that in many instances, the returns generated by Tata Retirement Savings Fund-Progressive Plan is better as compared to Tata Equity PE Fund. The table given below summarizes the comparison of performance section.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch Tata Retirement Savings Fund - Progressive
Growth
Fund Details 1.8% 10.9% 17.4% 14.5% 16.4% 9.5% 14.2% Tata Equity PE Fund
Growth
Fund Details 0.1% 10% 18.8% 20.5% 22.5% 11% 18.1%
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This section compares the absolute returns generated by both the schemes for a particular year. The comparison of absolute returns shows that in certain years Tata Equity PE Fund leads the race while in others Tata Retirement Savings Fund-Progressive Plan leads the race. The table given below shows the comparison summary of the yearly performance section.
Parameters Yearly Performance 2022 2021 2020 2019 2018 Tata Retirement Savings Fund - Progressive
Growth
Fund Details -3.9% 23.3% 14.4% 11.5% -6.1% Tata Equity PE Fund
Growth
Fund Details 5.9% 28% 12.5% 5.3% -7.1%
This being the last section in the comparison, it includes elements such as AUM and minimum SIP and lumpsum investment. The minimum SIP and lumpsum amount for both the schemes is same. The minimum SIP amount for both the schemes is INR 500 and the minimum lumpsum amount for both the schemes is INR 5,000. However, there is a significant difference between the AUM of both the schemes. As on March 31, 2018, the AUM of Tata Retirement Savings Fund-Progressive Plan was around INR 404 Crores while of Tata Equity PE Fund was around INR 2,965 Crores. The summary of other details section is as shown in the table given below.
Parameters Other Details Min SIP Investment Min Investment Fund Manager Tata Retirement Savings Fund - Progressive
Growth
Fund Details ₹150 ₹5,000 Murthy Nagarajan - 6.42 Yr. Tata Equity PE Fund
Growth
Fund Details ₹150 ₹5,000 Sonam Udasi - 7.42 Yr.
Tata Retirement Savings Fund - Progressive
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Aug 18 ₹10,000 31 Aug 19 ₹9,117 31 Aug 20 ₹9,848 31 Aug 21 ₹14,085 31 Aug 22 ₹13,942 31 Aug 23 ₹15,812 Tata Equity PE Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Aug 18 ₹10,000 31 Aug 19 ₹8,894 31 Aug 20 ₹9,037 31 Aug 21 ₹13,218 31 Aug 22 ₹14,333 31 Aug 23 ₹16,857
Tata Retirement Savings Fund - Progressive
Growth
Fund Details Asset Allocation
Asset Class Value Cash 6.03% Equity 93.97% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 30 Nov 11 | HDFCBANK8% ₹115 Cr 730,000 Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 18 | RELIANCE4% ₹68 Cr 284,000 ITC Ltd (Consumer Defensive)
Equity, Since 30 Apr 18 | ITC4% ₹68 Cr 1,545,000 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Dec 18 | ICICIBANK4% ₹64 Cr 667,000 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Aug 20 | TCS3% ₹48 Cr 143,000 Solar Industries India Ltd (Basic Materials)
Equity, Since 31 Oct 22 | SOLARINDS3% ₹46 Cr 95,500 PB Fintech Ltd (Financial Services)
Equity, Since 31 May 23 | 5433903% ₹46 Cr 593,000
↑ 25,000 SBI Cards and Payment Services Ltd Ordinary Shares (Financial Services)
Equity, Since 30 Sep 20 | SBICARD3% ₹43 Cr 531,800 APL Apollo Tubes Ltd (Basic Materials)
Equity, Since 30 Sep 22 | APLAPOLLO3% ₹42 Cr 252,000
↑ 7,000 Jupiter Wagons Ltd (Industrials)
Equity, Since 31 May 23 | JWL3% ₹41 Cr 1,185,578
↓ -338,579 Tata Equity PE Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 4.19% Equity 95.81% Equity Sector Allocation
Sector Value Financial Services 30.66% Consumer Cyclical 12.08% Basic Materials 10.23% Consumer Defensive 9.08% Energy 8.18% Industrials 7.24% Utility 6.93% Technology 5.48% Health Care 3.92% Communication Services 2.02% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 30 Jun 18 | HDFCBANK9% ₹517 Cr 3,291,704
↓ -1,580,000 ITC Ltd (Consumer Defensive)
Equity, Since 31 Jul 18 | ITC6% ₹355 Cr 8,080,000 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Dec 18 | ICICIBANK5% ₹314 Cr 3,280,000
↓ -430,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 17 | RELIANCE5% ₹307 Cr 1,275,000 Hero MotoCorp Ltd (Consumer Cyclical)
Equity, Since 31 Jan 22 | HEROMOTOCO4% ₹251 Cr 862,000 NTPC Ltd (Utilities)
Equity, Since 30 Apr 22 | 5325554% ₹240 Cr 10,900,000
↑ 200,000 Hindustan Aeronautics Ltd Ordinary Shares (Industrials)
Equity, Since 31 Dec 21 | HAL4% ₹234 Cr 600,000 Grasim Industries Ltd (Basic Materials)
Equity, Since 31 Mar 22 | GRASIM3% ₹204 Cr 1,140,000
↑ 62,000 Radico Khaitan Ltd (Consumer Defensive)
Equity, Since 30 Nov 17 | RADICO3% ₹185 Cr 1,470,000 Greenpanel Industries Ltd Ordinary Shares (Basic Materials)
Equity, Since 31 Mar 21 | GREENPANEL3% ₹181 Cr 4,779,363
↑ 25,000
Thus, form the above pointers, it can be concluded in a nutshell that both the schemes differ on account of numerous pointers. As a consequence, individuals should be careful while choosing any of the schemes for investment. They should understand its modalities completely and ensure whether the scheme suits their investment objective or not. This will help them to attain their objectives on time and in a hassle-free manner.