In its more than two-decade history, this fund has had its share of ups and downs. It is a well diversified balanced fund, with a tilt of 65-75 per cent in equity and equityrelated instruments. However, the average equity exposure is closer to the higher end of the band. The fund aims to provide income distribution through long-term capital gains, while emphasising the importance of capital appreciation.
Tata Balanced adopts a growth at-reasonable-price approach for stock selection, with quality stocks in its portfolio that have the potential to earn superior returns in the long run. Within equities, the fund maintains a higher allocation to quality large-cap stocks, with a diversified portfolio of 70-odd stocks. Further, allocation to each stock is not more than 4-4.5 per cent, with a buy and hold strategy in high quality businesses. A cause of concern is the frequent change in fund managers, which tends to dent its short-term performance from time-to-time.
Other funds based on stable returns :
