Tata Focused Fund
Direct · GrowthAI Summary
Tata Focused Fund has delivered consistent alpha over the NIFTY 50, with Fund CAGR of 11.86% vs 7.75% for the benchmark over 3Y and 11.47% vs 7.83% over 5Y. Its SIP XIRR of 18.25% over 3Y and 16.65% over 5Y beats the category averages of 16.4% and 15.29% respectively, though its 1Y XIRR of 12.73% trails the category's 17.03%. Positive alpha across all periods from 1Y to 15Y indicates durable outperformance rather than a short-term anomaly.
The fund shows strong downside protection with downside capture below 100% across all periods (93.25% at 1Y, 95.06% at 3Y), meaning it falls less than the benchmark in weak markets. The maximum drawdown of just -0.37% with a 46-day duration and 231-day recovery reflects remarkably shallow recent drawdowns, though 4 drawdown events exceeding 10% have occurred historically. Calmar ratios of 0.52-0.58 across 1Y, 3Y, and 5Y indicate reasonable risk-adjusted returns relative to drawdown risk.
The 26-stock focused portfolio is heavily weighted toward banks, which account for 20.6% of NAV, with HDFC Bank (7.46%), ICICI Bank (7.28%), and Axis Bank (5.89%) as the top three positions. The remaining top holdings are well diversified across Reliance Industries, Samvardhana Motherson, NTPC, Bharti Airtel, and SBI Life, spanning energy, auto components, power, telecom, and insurance. Sector concentration in banks is meaningful but the rest of the book spans cement, telecom, healthcare, and insurance, providing reasonable balance for a focused mandate.
The fund outperforms category average SIP XIRR over 3Y (18.25% vs 16.4%) and 5Y (16.65% vs 15.29%), placing it in the upper tier of focused funds. Its 1Y XIRR of 12.73% lags the category's 17.03%, suggesting recent momentum has been softer than peers. Calendar year returns show strong consistency in good years (34.76% in 2021, 29.16% in 2023) but modest results in weak years (0.95% in 2025, -2.45% in 2026 YTD).
This fund suits investors seeking a concentrated, large-cap-tilted equity portfolio with a long-term horizon of at least 5-7 years to allow the alpha to compound. It is appropriate for moderate risk tolerance, given its lower-than-benchmark downside capture and shallow recent drawdowns, though the 20.6% bank exposure adds sector concentration risk. It works well as a core holding for SIP investors who value consistency over aggressive outperformance.
- Consistent positive alpha over NIFTY 50 across all measured periods, including 4.09% over 3Y and 3.66% over 5Y
- Superior downside capture (93-95%) across periods, indicating better capital protection in falling markets
- 3Y and 5Y SIP XIRR above category averages, with a low 0.72% expense ratio for a focused fund
- Heavy bank sector concentration at 20.6% of NAV exposes the fund to financial sector-specific shocks
- 1Y SIP XIRR of 12.73% trails the category average of 17.03%, indicating recent relative underperformance versus peers
Generated on 01-09-2026, 2:47 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 | ₹12.89 L | 22.3% | -21.3% | 99.9% |
| 3 Years | ₹36.00 L | ₹45.64 L | 17.5% | 0.4% | 33.0% |
| 5 Years | ₹60.00 L | ₹88.73 L | 15.9% | 7.7% | 25.4% |
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 | 22.3% | 14.4% | 17.0% | +7.9% |
| 3 Years | 17.5% | 11.1% | 16.4% | +6.4% |
| 5 Years | 15.9% | 10.4% | 15.3% | +5.5% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 21.5% | 15.5% | -8.0% | 96.3% | 0.72 | 4.59 | 91% | — | — |
| 3 Years | 19.6% | 19.1% | 11.7% | 34.3% | 3.01 | — | 100% | — | — |
| 5 Years | 19.1% | 19.3% | 11.5% | 29.5% | 2.81 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +2.95 | 0.99 | 97.1% | 93.3% | 0.1% | -2.9% |
| 3 Years | +4.09 | 1.01 | 100.5% | 95.1% | 11.9% | 7.8% |
| 5 Years | +3.66 | 0.98 | 99.2% | 94.7% | 11.5% | 7.8% |
| 7 Years | +4.02 | 0.96 | 98.2% | 93.8% | 14.4% | 10.6% |
| 10 Years | +2.64 | 0.96 | 98.2% | 93.8% | 9.9% | 7.3% |
| 12 Years | +2.12 | 0.96 | 98.2% | 93.8% | 8.2% | 6.0% |
| 15 Years | +1.62 | 0.96 | 98.2% | 93.8% | 6.5% | 4.8% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | HDFC BANK LTD | 7.46% |
| 2 | ICICI BANK LTD | 7.28% |
| 3 | AXIS BANK LTD | 5.89% |
| 4 | RELIANCE INDUSTRIES LTD | 4.95% |
| 5 | SAMVARDHANA MOTHERSON INTERNATIONAL LTD | 4.57% |
| 6 | NTPC LTD | 4.40% |
| 7 | BHARTI AIRTEL LTD | 4.30% |
| 8 | SBI LIFE INSURANCE COMPANY LTD | 3.89% |
| 9 | ULTRATECH CEMENT LTD | 3.66% |
| 10 | HEALTHCARE GLOBAL ENTERPRISES LTD | 3.59% |