Tata Ethical Fund
Direct · GrowthAI Summary
Tata Ethical Fund has delivered a 5Y SIP XIRR of 15.6% and 10Y XIRR of 14.84%, but these trail the category averages of 17.53% and 16.47% respectively across all horizons. Against the NIFTY 50, the fund shows positive alpha over longer periods, with a 7Y alpha of 3.84% and 15Y alpha of 3.40%, though recent windows are weaker with a 1Y alpha of -2.61%. Lump-sum performance is more encouraging, with 5Y Fund CAGR of 5.13% modestly beating the benchmark's 4.82%.
The fund's beta of roughly 0.73-0.80 across all windows indicates it is meaningfully less volatile than the NIFTY 50, with downside capture of 67.72-81.89% confirming cushioned losses in weak markets. It has experienced 6 drawdown events exceeding 10%, and the current maximum drawdown of -0.29% took 147 days to recover from a 39-day decline. Calmar ratios of around 0.48-0.54 across horizons suggest moderate risk-adjusted efficiency relative to drawdown.
The portfolio holds 56 stocks with the top 10 accounting for roughly 34% of NAV, led by Infosys (6.74%) and TCS (5.14%). IT-Software dominates at 22.8% of the portfolio, followed by Pharmaceuticals at 12.2%, creating meaningful sector concentration. The Shariah-compliant mandate excludes banking and financials, which explains the tilt toward IT, pharma, and select cyclical names like Jindal Steel and BHEL.
The fund underperforms its category's SIP XIRR at every horizon, lagging the 3Y category average of 16.4% with its own 12.87%. Calendar year returns show high dispersion, ranging from 45.28% in 2021 to -11.76% in 2026, reflecting the thematic nature of the mandate. Long-term consistency versus the NIFTY 50 is a relative bright spot, with positive alpha in the 7Y, 10Y, 12Y, and 15Y windows.
This fund suits investors seeking Shariah-compliant equity exposure who accept sector concentration risk in exchange for ethical screening constraints. A horizon of 7 years or more is appropriate, given that the fund's outperformance versus the NIFTY 50 emerges mainly in longer windows. Investors should have moderate-to-high risk tolerance, as calendar year swings of 40+ percentage points are evident in its history.
- Consistently low beta of 0.70-0.81 with downside capture below 82%, offering better downside protection than the NIFTY 50
- Positive alpha over long horizons, including 3.84% over 7Y and 3.40% over 15Y versus the NIFTY 50
- Reasonable diversification with 56 holdings and a reasonable 0.72% expense ratio for the Direct plan
- SIP XIRR trails the category average at every horizon, with the 3Y gap being 3.53 percentage points (12.87% vs 16.4%)
- Heavy sector concentration in IT-Software at 22.8% of the portfolio, with the top two holdings both IT stocks
Generated on 09-10-2026, 3:19 AM. Verify before investing.
Gives more importance to longer time periods (10Y, 20Y) than shorter ones (1Y, 3Y). This balances out recent outperformance and gives a more realistic picture of what long-term returns might look like.
The largest peak-to-trough decline in the fund's NAV. Shows the worst-case loss an investor would have experienced at any point in the fund's history.
If you invested ₹1,00,000 every month via SIP, here's how this fund has historically performed across different time horizons.
| Duration | Invested | Median Value | XIRR | Min XIRR | Max XIRR |
|---|---|---|---|---|---|
| 1 Year | ₹12.00 L | ₹12.65 L | 16.2% | -42.8% | 75.5% |
| 3 Years | ₹36.00 L | ₹43.08 L | 13.6% | -15.0% | 39.4% |
| 5 Years | ₹60.00 L | ₹86.10 L | 14.2% | -5.7% | 26.5% |
| 7 Years | ₹84.00 L | ₹1.45 Cr | 14.9% | 0.4% | 22.6% |
| 10 Years | ₹1.20 Cr | ₹2.57 Cr | 14.8% | 9.9% | 18.8% |
| 12 Years | ₹1.44 Cr | ₹3.45 Cr | 13.5% | 10.1% | 16.9% |
SIP returns vs benchmark & category
Annualised SIP return (XIRR) over each rolling horizon — like-for-like, not lump-sum.
| Duration | Fund SIP XIRR | NIFTY 50 | Category avg | Fund edge |
|---|---|---|---|---|
| 1 Year | 16.2% | 14.3% | 10.7% | +2.0% |
| 3 Years | 13.6% | 11.0% | 16.3% | +2.6% |
| 5 Years | 14.2% | 10.4% | 17.5% | +3.8% |
| 7 Years | 14.9% | 10.6% | 16.6% | +4.4% |
| 10 Years | 14.8% | 11.4% | 16.4% | +3.4% |
| 12 Years | 13.5% | 11.3% | 15.8% | +2.1% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 15.9% | 11.7% | -22.0% | 85.8% | 0.48 | 1.57 | 76% | — | — |
| 3 Years | 14.5% | 13.4% | -2.6% | 32.6% | 1.18 | 8.46 | 100% | — | — |
| 5 Years | 14.6% | 14.8% | -0.8% | 25.9% | 1.54 | 11.15 | 100% | — | — |
| 10 Years | 14.2% | 14.3% | 10.6% | 17.2% | 4.15 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | -0.65 | 0.80 | 79.1% | 78.3% | -6.9% | -9.5% |
| 3 Years | -1.10 | 0.81 | 81.8% | 81.6% | 4.6% | 5.5% |
| 5 Years | +0.39 | 0.80 | 80.5% | 78.3% | 5.4% | 4.6% |
| 7 Years | +3.96 | 0.73 | 76.3% | 70.4% | 13.4% | 10.6% |
| 10 Years | +1.86 | 0.74 | 76.3% | 72.5% | 11.3% | 10.5% |
| 12 Years | +2.65 | 0.73 | 75.5% | 70.7% | 11.4% | 9.6% |
| 15 Years | +3.48 | 0.70 | 74.0% | 67.7% | 12.0% | 9.4% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | INFOSYS LTD | 6.74% |
| 2 | TATA CONSULTANCY SERVICES LTD | 5.14% |
| 3 | TECH MAHINDRA LTD | 3.39% |
| 4 | HINDUSTAN UNILEVER LTD | 3.28% |
| 5 | BHARAT HEAVY ELECTRICALS LTD | 2.88% |
| 6 | HCL TECHNOLOGIES LTD | 2.72% |
| 7 | SRF LTD | 2.72% |
| 8 | FORTIS HEALTHCARE LTD | 2.61% |
| 9 | JINDAL STEEL LTD | 2.60% |
| 10 | DR REDDYS LABORATORIES LTD | 2.55% |