Groww Logo
SWITCH TO DIRECTHELPMUTUAL FUNDS
0% COMMISSION ON GROWW
Home>Mutual Funds>Tata Mutual Funds>Best Tata Mutual Funds

Best TATA Debt Mutual Funds

Established in 1994, TATA Mutual Fund provides an extensive range of investment solutions focused on financial planning and wealth creation. The asset management company (AMC) manages funds across the entire risk-return spectrum; its offerings include equity, debt, and hybrid mutual funds. Moreover, it also provides solution-oriented and closed-ended schemes. 

For the quarter ended March 2021, the AMC has a quarterly AUM of approximately Rs.61,684 and offers more than 150 schemes, including the best TATA debt mutual funds

Debts funds invest in fixed-income securities, for example, corporate bonds, government securities, commercial paper, certificate of deposits, treasury bills, debentures, etc. They’re known to offer stability to investors by delivering low-risk returns that are higher than bank fixed deposits. Moreover, unlike equity mutual fund schemes, the returns generated by top TATA debt mutual funds are not impacted by stock market fluctuations. 

There are more than 60 types of TATA debt mutual fund schemes. These allocate funds to debt and money market instruments across different Macaulay durations and credit risk spectrum. Schemes that invest in securities with a short maturity period mainly earn from interest payments; whereas, funds with a long Macaulay duration generate earnings from capital gains and interest coupons. 

In comparison to most asset categories, debt instruments are extremely liquid. Investors are able to redeem their units in debt funds at their convenience. Moreover, there are tax benefits in the case of these mutual fund schemes, as TDS is not applicable to debt funds. 

Taxability

Here’s how gains from debt funds are taxed:

Long-term Capital Gains Tax: If an investor sells his/her units in a debt fund after holding them for more than three years, the returns earned from such a sale are termed long-term capital gains (LTCG). A tax rate of 20% is applicable on such gains. Also, investors can avail the indexation benefit. 

Short-term Capital Gains Tax: In case investors sell their holdings before three years from the date of purchase, their returns are added to their taxable income and taxed per the applicable slab rate. 

Factors to Consider Before Investing

Nevertheless, investing can be complicated as different asset classes come with their own set of characteristics. Hence, before individuals invest their savings, they might want to consider certain key things that would help them determine which is the best TATA debt mutual fund scheme for them. Let’s delve into its various aspects. 

Investment goal: Different types of mutual fund schemes have contrasting objectives. While equity mutual funds are known to generate high returns and maximise long-term portfolio value, debt funds offer stability to investors as they are immune to market fluctuations. Thus, for investors, it’s vital to identify their financial goal before parting with their savings. 

Risk appetite: While the best TATA debt mutual funds 2022 are not impacted by market volatility, they are not free of risk. They are associated with credit risk, interest rate risk, inflation risk, etc., unlike bank fixed deposits. Hence, investors must assess their risk profile before buying units of debt mutual funds.

Credit risk of underlying securities: The fixed income securities are rated by credit rating agencies based on the creditworthiness of issuers. Debt instruments that have a AAA rating are associated with the lowest credit risk; whereas, securities with a C rating have high default risk. 

Maturity period: Similar to other schemes of this category, even the best TATA debt mutual funds are impacted by changing interest rates. The longer the Macaulay duration, the more a debt fund will be prone to interest rate changes. In a falling interest rate regime, a debt fund that invests in securities with a long maturity period will perform well. On the flip side, in a rising interest rate regime, a debt fund will potentially do well if the underlying debt instruments have a short Macaulay duration.   

Assets under management (AUM): AUM refers to the market value of investments held by a mutual fund. Debt funds having a high AUM can distribute the fixed expenses of the scheme across its subscribers. That said, AUM or any other factor cannot be the sole reason why you invest or do not invest in a fund.

Expense ratio: This is a maintenance fee that a fund house charges its investors to cover the portfolio management expenses. It includes administrative and operating costs, which includes the salary of a fund manager, advertisement expenses, allocation charges, etc. It varies from one AMC to another and has a direct impact on the returns earned by an investor. Hence, individuals must make sure to compare the expense ratios of the best TATA debt mutual funds when choosing a scheme. 

Trailing performance of a fund: The past performance of a fund doesn’t determine its future returns. However, the historical returns of a scheme can give an idea if the fund has been able to achieve its pre-determined objectives. For investors, it is vital to consider this aspect when figuring out which is the best debt mutual fund for them

Direct or regular plan: An investor can opt for a direct plan of a mutual fund scheme without the involvement of any third party such as brokers or distributors. Hence, AMCs do not have to pay any commission, which reduces the expense ratio. On the contrary, regular plans require the involvement of third parties, and thus they have a higher expense ratio. Also, they report a lower NAV in comparison to a regular plan. 

Investment route: Individuals can invest in the best TATA debt mutual funds via two investment routes – SIP and lumpsum. SIP stands for a Systematic Investment Plan, which allows one to invest in a debt fund scheme via fixed instalments pay at regular intervals – monthly, quarterly, annually, etc. Whereas by choosing to invest via the lump sum mode, investors can allocate the entire amount to a scheme all at once.

Why invest with Groww?

— Registered with SEBI, AMFI & BSE

— Paperless sign up on web & app

— Expert recommendations

— ZERO fees !

Sign Up

List of Tata Mutual Funds in India

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
Tata Digital India FundEquityVery High11.5%0₹5,584
Tata India Consumer FundEquityVery High7.2%2₹1,340
Tata Equity PE FundEquityVery High8.7%3₹4,980
Tata Ethical FundEquityVery High9.3%0₹1,252
Tata Income FundDebtModerate0.7%3₹53
Tata Banking and Financial Services FundEquityVery High-5.2%4₹947
Tata India Tax Savings FundEquityVery High7.5%3₹2,978
Tata Money Market FundDebtModerate3.8%5₹9,969
Tata Hybrid Equity FundHybridVery High7.1%2₹3,172
Tata Flexi Cap FundEquityVery High3.8%3₹2,131
Tata Retirement Savings FundSolution OrientedVery High2.7%3₹1,568
Tata India Pharma & HealthCare FundEquityVery High-3.8%0₹538
Tata Retirement Savings FundSolution OrientedVery High1.3%3₹1,194
Tata Index Sensex FundOtherVery High6.8%4₹133
Tata Liquid FundDebtLow to Moderate3.5%3₹13,843
View All

Let's have a closer look

Now let us jump and check about these top 10 mutual fund schemes.

Tata Digital India Fund Direct Growth

Fund Performance: The Tata Digital India Fund has given 28.74% annualized returns in the past three years and 28.45% in the last 5 years. The Tata Digital India Fund belongs to the Equity category of Tata Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Tata Digital India Fund via lump sum is ₹5,000 and via SIP is ₹150.

Min Investment Amt₹5,000
AUM₹5,584Cr
1Y Returns11.5%

Tata India Consumer Fund Direct Growth

Fund Performance: The Tata India Consumer Fund has given 13.58% annualized returns in the past three years and 13.43% in the last 5 years. The Tata India Consumer Fund belongs to the Equity category of Tata Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Tata India Consumer Fund via lump sum is ₹5,000 and via SIP is ₹150.

Min Investment Amt₹5,000
AUM₹1,340Cr
1Y Returns7.2%

Tata Equity PE Fund Direct Growth

Fund Performance: The Tata Equity PE Fund has given 11.61% annualized returns in the past three years and 9.95% in the last 5 years. The Tata Equity PE Fund belongs to the Equity category of Tata Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Tata Equity PE Fund via lump sum is ₹5,000 and via SIP is ₹150.

Min Investment Amt₹5,000
AUM₹4,980Cr
1Y Returns8.7%

Tata Ethical Direct Plan Growth

Fund Performance: The Tata Ethical Fund has given 18.66% annualized returns in the past three years and 14.27% in the last 5 years. The Tata Ethical Fund belongs to the Equity category of Tata Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Tata Ethical Fund via lump sum is ₹5,000 and via SIP is ₹150.

Min Investment Amt₹5,000
AUM₹1,252Cr
1Y Returns9.3%

Tata Income Fund Direct Growth

Fund Performance: The Tata Income Fund has given 6.75% annualized returns in the past three years and 6.17% in the last 5 years. The Tata Income Fund belongs to the Debt category of Tata Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Tata Income Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹53Cr
1Y Returns0.7%

Tata Banking and Financial Services Fund Direct Growth

Fund Performance: The Tata Banking and Financial Services Fund has given 6.42% annualized returns in the past three years and 10.14% in the last 5 years. The Tata Banking and Financial Services Fund belongs to the Equity category of Tata Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Tata Banking and Financial Services Fund via lump sum is ₹5,000 and via SIP is ₹150.

Min Investment Amt₹5,000
AUM₹947Cr
1Y Returns-5.2%

Tata India Tax Savings Fund Direct Growth

Fund Performance: The Tata India Tax Savings Fund has given 12.66% annualized returns in the past three years and 12.19% in the last 5 years. The Tata India Tax Savings Fund belongs to the Equity category of Tata Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Tata India Tax Savings Fund via lump sum is ₹500 and via SIP is ₹500.

Min Investment Amt₹500
AUM₹2,978Cr
1Y Returns7.5%

Tata Money Market Fund Direct Growth

Fund Performance: The Tata Money Market Fund has given 5.53% annualized returns in the past three years and 4.83% in the last 5 years. The Tata Money Market Fund belongs to the Debt category of Tata Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Tata Money Market Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹9,969Cr
1Y Returns3.8%

Tata Hybrid Equity Fund Direct Plan Growth

Fund Performance: The Tata Hybrid Equity Fund has given 10.25% annualized returns in the past three years and 9.04% in the last 5 years. The Tata Hybrid Equity Fund belongs to the Hybrid category of Tata Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Tata Hybrid Equity Fund via lump sum is ₹5,000 and via SIP is ₹150.

Min Investment Amt₹5,000
AUM₹3,172Cr
1Y Returns7.1%

Tata Flexi Cap Fund Direct Growth

Fund Performance: The Tata Flexi Cap Fund belongs to the Equity category of Tata Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Tata Flexi Cap Fund via lump sum is ₹5,000 and via SIP is ₹150.

Min Investment Amt₹5,000
AUM₹2,131Cr
1Y Returns3.8%

Tata Retirement Savings Fund Moderate Plan Direct Growth

Fund Performance: The Tata Retirement Savings Fund has given 10.11% annualized returns in the past three years and 10.16% in the last 5 years. The Tata Retirement Savings Fund belongs to the Solution Oriented category of Tata Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Tata Retirement Savings Fund via lump sum is ₹5,000 and via SIP is ₹150.

Min Investment Amt₹5,000
AUM₹1,568Cr
1Y Returns2.7%

Tata India Pharma & HealthCare Fund Direct Growth

Fund Performance: The Tata India Pharma & HealthCare Fund has given 22.97% annualized returns in the past three years and 14.88% in the last 5 years. The Tata India Pharma & HealthCare Fund belongs to the Equity category of Tata Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Tata India Pharma & HealthCare Fund via lump sum is ₹5,000 and via SIP is ₹150.

Min Investment Amt₹5,000
AUM₹538Cr
1Y Returns-3.8%

Tata Retirement Savings Fund Progressive Plan Direct Growth

Fund Performance: The Tata Retirement Savings Fund has given 10.66% annualized returns in the past three years and 10.87% in the last 5 years. The Tata Retirement Savings Fund belongs to the Solution Oriented category of Tata Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Tata Retirement Savings Fund via lump sum is ₹5,000 and via SIP is ₹150.

Min Investment Amt₹5,000
AUM₹1,194Cr
1Y Returns1.3%

Tata Index Sensex Direct

Fund Performance: The Tata Index Sensex Fund has given 11.66% annualized returns in the past three years and 12.69% in the last 5 years. The Tata Index Sensex Fund belongs to the Other category of Tata Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Tata Index Sensex Fund via lump sum is ₹5,000 and via SIP is ₹150.

Min Investment Amt₹5,000
AUM₹133Cr
1Y Returns6.8%

Tata Liquid Fund Direct Growth

Fund Performance: The Tata Liquid Fund has given 4.3% annualized returns in the past three years and 5.47% in the last 5 years. The Tata Liquid Fund belongs to the Debt category of Tata Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Tata Liquid Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹13,843Cr
1Y Returns3.5%

Explore all Mutual Funds on Groww

Explore Mutual Funds
ⓒ 2016-2022 Groww. All rights reserved, Built with in India
MOST POPULAR ON GROWWVERSION - 2.4.0
STOCK MARKET INDICES:  S&P BSE SENSEX |  S&P BSE 100 |  NIFTY 100 |  NIFTY 50 |  NIFTY MIDCAP 100 |  NIFTY BANK |  NIFTY NEXT 50
MUTUAL FUNDS COMPANIES:  ICICI PRUDENTIAL |  HDFC |  NIPPON INDIA |  ADITYA BIRLA SUN LIFE |  SBI |  UTI |  FRANKLIN TEMPLETON |  KOTAK MAHINDRA |  IDFC |  DSP |  AXIS |  TATA |  L&T |  SUNDARAM |  PGIM |  INVESCO |  LIC |  JM FINANCIAL |  BARODA PIONEER |  CANARA ROBECO |  HSBC |  IDBI |  INDIABULLS |  MOTILAL OSWAL |  BNP PARIBAS |  MIRAE ASSET |  PRINCIPAL |  BOI AXA |  UNION KBC |  TAURUS |  EDELWEISS |  NAVI |  MAHINDRA |  QUANTUM |  PPFAS |  IIFL |  Quant |  SHRIRAM |  SAHARA |  ITI