Tata Large and Mid Cap Fund

Tata Large and Mid Cap Fund has delivered strong long-term SIP XIRR of 15.9% over 10Y and 16.35% over 5Y, though it trails the category average SIP XIRR across all periods (e.g., 16.83% vs 15.9% over 10Y, 18.05% vs 16.35% over 5Y). Against the NIFTY 50 on a lump-sum basis, the fund has generated consistent positive alpha, with 3.04% alpha over 5Y and 3.49% over 12Y, and Fund CAGR of 12.27% vs benchmark 9.08% over 12Y. Recent performance is weaker, with a -12.54% calendar year return in 2026 and 1Y XIRR of just 6.98%.

The fund exhibits a beta below 1 across most periods (0.87-0.91 over 5Y-15Y), with downside capture of roughly 83-85% versus upside capture of 88-90%, indicating it falls less than the benchmark in down markets while capturing slightly less upside. The Calmar Ratio remains stable around 0.43-0.44 across 3Y-12Y windows, suggesting consistent risk-adjusted returns. The fund has experienced 8 drawdown events exceeding 10%, which is expected for a large and mid cap portfolio, though the current maximum drawdown of -0.36% recovered in 231 days.

The portfolio is heavily weighted toward financials, with Banks alone at 23.8% and Finance adding another 7.1%, meaning nearly a third of assets are in financial services. Top holdings include HDFC Bank (8.7%), SBI (5.47%), and IDFC First Bank (4.86%), with 49 total holdings providing reasonable diversification beyond the top 10. Other notable exposures include Telecom (6.3%), Beverages (6.3%), and Auto Components (6.1%), giving the fund meaningful cyclicals and consumer exposure alongside its banking core.

The fund lags its category peers on SIP XIRR at every horizon, trailing the category average by roughly 1-4 percentage points (e.g., 14.73% vs 18.21% over 3Y, a 3.48 point gap). However, its lump-sum performance versus NIFTY 50 shows durable alpha over long windows, with 3.62% alpha over 15Y and Fund CAGR of 12.55% vs 9.26% for the benchmark. The consistency of rolling returns, ranging from 15.15% to 16.21% across 3Y-12Y windows, indicates steady long-term compounding despite recent underperformance versus peers.

This fund suits investors with a high risk tolerance and a horizon of at least 5-7 years, given its mid cap exposure, banking concentration, and history of double-digit drawdowns. It is appropriate as a core large-and-mid cap allocation for investors seeking benchmark-beating lump-sum returns with below-benchmark volatility. Investors prioritizing top-quartile SIP returns versus category peers may want to compare alternatives, as the fund currently trails its category across all measured periods.

• Consistent positive alpha versus NIFTY 50 across all long-term windows, including 3.49% over 12Y and 3.62% over 15Y
• Below-benchmark downside capture (83-85%) with beta under 1, offering better downside protection than the index
• Stable rolling returns of 15.15%-16.21% across 3Y-12Y windows, indicating reliable long-term compounding

• SIP XIRR trails the category average at every horizon, with a 3.48 percentage point gap over 3Y (14.73% vs 18.21%)
• Heavy sector concentration in financials, with Banks at 23.8% and Finance at 7.1%, exposing investors to banking sector downturns
• Weak recent performance, including a -12.54% calendar year return in 2026 and 1Y XIRR of only 6.98%