This edition of the fund performance report looks at Tata Large & Mid Cap Fund. Although launched in March 1993 as Tata Equity Opportunities Fund, the fund currently only has an AUM of Rs. 3641 Crores.
After the SEBI MF categorization rules kicked in, Tata AMC merged Tata Equity Opportunities Fund with Tata Dividend Yield Fund and renamed it Tata Large and Mid cap Fund (from May 2018). Further, from Jan 2020, the fund’s benchmark was changed from S&P BSE 200 TRI to Nifty LargeMidcap 250 TRI.
Disclaimer: Fund performance reports present return and risk analysis of a fund with representative benchmarks and not investment recommendations. It must be expressly understood that the data below reflect only past performance and is in no way an indication of future performance. Our investment recommendations are Handpicked List of Mutual Funds (PlumbLine).
As one can see from the market cap allocation history, the fund does not shy away from holding 30-40% of mid cap stocks from time to time.
We find out how consistently the Tata Large and Midcap Fund has performed wrt Nitfy 200 index and Nify Largemidcap 250 TRI. We will use three metrics to analyze performance consistency versus benchmarks. Analysis such as this can be found for 350+ equity funds in our monthly equity mutual fund screener.
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1 Rolling return outperformance consistency: the fund returns are compared with category benchmark returns over every possible 3Y,4Y, and 5Y period from 1st Jan 2013. Higher the outperformance consistency, the better. Suppose 876 fund returns were compared with 876 benchmark returns, and the fund has beaten the benchmark 675 times. The consistency score will be 675/876 ~ 77%.
| Metric | N200TRI | Nifty Largemidcap 250 TRI |
| No of rolling return entries Index (3 Years) | 1730 | 1742 |
| No of rolling return entries Fund (3 years) | 1730 | 1742 |
| No of times the fund has outperformed the index (3 years) | 1279 | 814 |
| rolling return outperformance Consistency Score (3 years) | 74% | 47% |
| No of rolling return entries Index (4 Years) | 1498 | 1498 |
| No of rolling return entries Fund (4 years) | 1498 | 1498 |
| No of times the fund has outperformed the index (4 years) | 1221 | 603 |
| rolling return outperformance Consistency Score (4 years) | 82% | 40% |
| No of rolling return entries Index (5 Years) | 1252 | 1252 |
| No of rolling return entries Fund (5 years) | 1252 | 1252 |
| No of times the fund has outperformed the index (5 years) | 975 | 464 |
| rolling return outperformance Consistency Score (5 years) | 78% | 37% |
Unfortunately, Tata Large and Midcap Fund has consistently underperformed its own choice of benchmark Nifty Largemidcap 250 TRI.
2 Upside performance consistency over every possible 1Y,2Y,3Y,4Y, 5Y: Higher the better. A score of 70% means, 7 out of 10 times, the Fund performed better than the category benchmark when the benchmark was moving up. This is a measure of reward. It is computed from rolling upside capture data (see link below).
| Metric | N200TRI | Nifty Largemidcap 250 TRI |
| upside performance consistency (3 years) | 29% | 2% |
| upside performance consistency (4 years) | 24% | 0% |
| upside performance consistency (5 years) | 10% | 0% |
The lack of upside performance is typical in many funds.
3 Downside performance consistency over every possible 1Y, 2Y, 3Y,4Y, and 5Y. Higher, the better. A score of 60% means 6 out of 10 times, the Fund performed better than the category benchmark when the benchmark was moving down. This is a measure of risk protection. It is computed from rolling downside capture data. Read more: An introduction to Downside and Upside Capture Ratios.
| Metric | N200TRI | Nifty Largemidcap 250 TRI |
| downside protection consistency (3 years) | 100% | 91% |
| downside protection consistency (4 years) | 100% | 96% |
| downside protection consistency (5 years) | 100% | 100% |
The downside performance is there, but that means little if the fund does not beat the benchmark it preferred over a normal capitalization-weighted index like the BSE 200 or Nifty 200. The Nifty Largemidcap 20 has 50% of large cap stocks and 50% of mid cap stocks. So when the mid cap stocks surge, it would be difficult for large and mid-cap funds to beat it. At the same time, such funds would fall lower than the index.
Unfortunately, we cannot bring ourselves to recommend Tata Large and Midcap Fund. The same is true for many other funds in the category as well: Can I use a large and mid cap fund instead of an index fund?