Tata Ethical Fund

Review Date: 12-12-2025

Beginning of Analysis

Tata Ethical Fund is the 22nd ranked fund in the Sectoral/ Thematic Fund category. The category has total 22 funds. The Tata Ethical Fund has shown a very poor past performence in Sectoral/ Thematic Fund. The fund has a Jensen Alpha of -3.94% which is lower than the category average of 1.72%, showing poor performance. The fund has a Sharpe Ratio of 0.34 which is lower than the category average of 0.77.
The past performance of the fund may or may not be sustained in the future. The review is not investment advice nor is it a recommendation to buy or sell funds. The ranking is based on proprietary methodology developed by bmsmoney. The methodology is based on the past performance of the funds and does not guarantee future performance.
Sectoral/Thematic Mutual Funds are ideal for aggressive investors seeking high returns by investing in a specific sector or theme. These funds offer targeted exposure to sectors like banking, technology, or themes like infrastructure and ESG, allowing investors to capitalize on the growth potential of these segments. However, they carry higher risks due to their concentrated exposure and are heavily dependent on the performance of the chosen sector or theme. Investors should have a long-term investment horizon, a high risk tolerance, and a good understanding of the sector or theme before investing in these funds. Additionally, timing the market and monitoring sectoral trends are crucial for success.

Tata Ethical Fund Return Analysis

The Tata Ethical Fund has delivered a mixed performance across various time horizons, showcasing both strengths and challenges when compared to its Sectoral/ Thematic Fund peers and the Nifty 500 TRI benchmark. This analysis examines the fund’s returns over periods ranging from one month to ten years, alongside its Systematic Investment Plan (SIP) performance, highlighting its rankings within the Sectoral/ Thematic Fund category and its ability to outperform or underperform the benchmark and category averages.

• The fund has given a return of 0.0%, 0.46 and 2.17 in last one, three and six months respectively. In the same period the category average return was -1.02%, 0.86% and 3.03% respectively.
• Tata Ethical Fund has given a return of -3.97% in last one year. In the same period the Nifty 500 TRI return was 3.05%. The fund has given 7.02% less return than the benchmark return.
• The fund has given a return of 12.36% in last three years and rank 22nd out of 22 funds in the category. In the same period the Nifty 500 TRI return was 15.53%. The fund has given 3.17% less return than the benchmark return.
• Tata Ethical Fund has given a return of 15.93% in last five years and category average returns is 19.69% in same period. The fund ranked 11th out of 14 funds in the category. In the same period the Nifty 500 TRI return was 17.36%. The fund has given 1.43% less return than the benchmark return.
• The fund has given a return of 13.21% in last ten years and ranked 6th out of six funds in the category. In the same period the Nifty 500 TRI return was 15.17%. The fund has given 1.96% less return than the benchmark return.
• The fund has given a SIP return of 6.53% in last one year whereas category average SIP return is 8.85%. The fund one year return rank in the category is 21st in 30 funds
• The fund has SIP return of 8.91% in last three years and ranks 22nd in 22 funds. Franklin India Opportunities Fund has given the highest SIP return (24.0%) in the category in last three years.
• The fund has SIP return of 11.18% in last five years whereas category average SIP return is 16.43%.

Tata Ethical Fund Risk Analysis

• The fund has a standard deviation of 13.06 and semi deviation of 9.7. The category average standard deviation is 13.52 and semi deviation is 9.81.
• The fund has a Value at Risk (VaR) of -18.25 and a maximum drawdown of -21.16. The category average VaR is -17.27 and the maximum drawdown is -18.01. The fund has a beta of 0.88 which shows that fund is less volatile than the benchmark.

Standard deviation measures the fund's return volatility and Semi deviation focuses on downside volatility. Value at Risk (VaR) is a measure of the risk of investments. Maximum Drawdown is the maximum loss from a peak to a trough of a portfolio. Beta measures the volatility of the fund compared to the benchmark. A beta of 1 indicates that the fund will move in line with the benchmark. A beta of more than 1 indicates that the fund will be more volatile than the benchmark and vice versa.

Very Good Performance in Sectoral/ Thematic Fund Category

Good Performance in Sectoral/ Thematic Fund Category

Poor Performance in Sectoral/ Thematic Fund Category

Very Poor Performance in Sectoral/ Thematic Fund Category

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Investors beware: Mutual Fund investments are subject to market risks. Please read the scheme related documents carefully.

Data Source: www.amfiindia.com

SEBI Categorization