Tata Ethical Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 10, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Tata Ethical Fund Direct Growth Plan has a NAV of ₹409.3438 as of 09 Sep 2026 and an AUM of ₹3,860 Cr. Its 1-year, 3-year and 5-year returns are -5.51%, 4.14% and 6.43%, and the fund sits in the High Risk category.
Our view is that this is a fund for investors who can accept uneven short-term swings in exchange for a longer holding period. The five-year figure is modest, while the one-year decline shows that recent behaviour has been weaker than the medium-term track record, even though the portfolio remains fairly diversified across 55 holdings.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹409.3438 as of 09 Sep 2026 |
| AUM | ₹3,860 Cr |
| Expense Ratio | 0.65% |
| Launch Date | 01 Jan 2013 |
| Min SIP | ₹100 |
| Risk Category | High Risk |
| Benchmark | Nifty 50 |
| Fund Category | Equity |
| Exit Load | 0.50% on or before 90D, Nil after 90D |
| Fund Managers | Abhinav Sharma |
The fund is managed by Abhinav Sharma.
Source data date: as of 09 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -5.52% | -4.69% |
| 3M | 0.54% | 0.93% |
| 1Y | -5.51% | -7.16% |
| 3Y | 4.14% | 6% |
| 5Y | 6.43% | 5.87% |
The recent one-month and three-month numbers show a fund that has been moving with clear short-term pressure, and the latest month in particular has been weak. That matters because the one-year return is also negative, so the recent pattern has not yet fully rebuilt confidence after the softer stretch.
Even so, the three-year and five-year figures point to a more stable longer-run picture. Over five years, the fund is slightly ahead of the benchmark, while over three years it trails the benchmark, so the longer record is mixed rather than uniformly strong. That tells us the fund has not followed a straight upward path, and the recent drawdown is consistent with the more uneven profile visible across the longer horizon.
Compared with the benchmark, the fund is ahead over 1 year and 5 years but behind over 3 years and 3 months. Our read is that the fund has shown resilience over some longer windows, yet it still needs a more sustained recovery to turn that into a cleaner performance story.
Source data date: as of 09 Sep 2026
Should you BUY or HOLD Tata Ethical?
A fund’s past returns alone don’t tell you whether you should buy it today or continue holding it.
The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.
Already holding Tata Ethical? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Tata Ethical Fund Direct Growth Plan | -5.51% | 4.14% | 6.43% |
| ICICI Pru Strategic Metal and Energy Equity FoF Direct Growth Plan | 71.49% | 36.55% | Data not available |
| Motilal Oswal Active Momentum Fund Direct Growth Plan | 30.08% | Data not available | Data not available |
| Kotak Healthcare Fund Direct Growth Plan | 28.85% | Data not available | Data not available |
| HDFC Pharma and Healthcare Fund Direct Growth Plan | 28.6% | Data not available | Data not available |
| PGIM India Healthcare Fund Direct Growth Plan | 27.47% | Data not available | Data not available |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
On the one-year view, the fund trails the stronger recent numbers shown by the peer set, and the gap is wide. The comparison becomes less one-sided over longer horizons because the fund has a positive three-year return and a firmer five-year figure, while most of the listed peers do not have longer-term figures available here.
That makes the short-term and longer-term readings different. The recent peer gap suggests the fund has been under pressure, but the five-year figure still indicates a usable long-run record. For investors, that means the fund should be judged more on whether they want a diversified, long-horizon equity allocation than on the latest one-year stretch alone.
Source data date: as of 09 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| Infosys Ltd | IT | 7.25% |
| Tata Consultancy Services Ltd | IT | 5.76% |
| Cash / Net Current Asset | Cash & Cash Equivalents and Net Assets | 3.73% |
| Tech Mahindra Ltd | IT | 3.73% |
| HCL Technologies Ltd | IT | 3.17% |
| DR Reddys Laboratories Ltd | Healthcare | 2.96% |
| Bharat Heavy Electricals Ltd | Capital Goods | 2.92% |
| Hindustan Unilever Ltd | FMCG | 2.9% |
| Jindal Steel Ltd | Iron & Steel | 2.78% |
| Ultratech Cement Ltd | Construction Materials | 2.44% |
The largest holding, Infosys Ltd, carries a weight of 7.25%, which is sizeable but not extreme for a diversified equity portfolio. The drop from the first holding to the tenth is fairly gradual, ending at 2.44%, so the fund does not rely on one position alone.
The top 10 holdings together account for approximately 37.64% of the portfolio, and the full disclosed holding list contains 55 positions. That suggests the fund may have a reasonably broad tail beyond the largest names, even though technology stocks still occupy several of the biggest slots. For investors, that mix could mean the portfolio’s return path is shaped by a handful of larger positions, but not dominated by a single holding.
To see all holdings, visit the Tata Ethical Fund Direct Growth Plan page
Source data date: as of 09 Sep 2026
Who should invest
This fund is better suited to investors with a high tolerance for volatility and a long enough horizon to ride through weaker stretches. The negative one-year return and the softer recent month mean the near-term journey can be uneven, but the three-year and five-year numbers show that the fund can recover over time.
Relative to the benchmark and the listed peers, the fund’s recent stretch is not especially strong, so investors need to accept that it may lag for periods before stabilising. The trade-off is a portfolio that is fairly diversified across 55 holdings and still anchored by large, established companies, but one that has not delivered smooth, consistent compounding.
Tax and exit load
| Holding period | Tax rate | Description |
|---|---|---|
| Units held less than 1 year | 20% | Short-term capital gains tax |
| Units held more than 1 year | 12.5% | Long-term capital gains tax |
Exit load applies at 0.50% if units are sold on or before 90 days. After 90 days, there is no exit load.
Source data date: as of 09 Sep 2026
Frequently asked questions
What is the current NAV of Tata Ethical Fund Direct Growth Plan?
The current NAV is ₹409.3438 as of 09 Sep 2026.
What are the 1-year, 3-year and 5-year returns?
The fund’s 1-year, 3-year and 5-year returns are -5.51%, 4.14% and 6.43%.
How does the fund compare with the benchmark?
It is ahead of Nifty 50 over 1 year and 5 years, but behind over 3 years and 3 months. That points to a mixed record rather than a consistently better or weaker one.
How does it compare with the peer funds listed here?
The listed peers have much stronger 1-year figures, with several in the high-20s to 70% range, while this fund is negative over 1 year. Over longer horizons, the fund’s 3-year and 5-year figures are available, but most of the listed peers do not show those periods here.
What is the minimum SIP?
The minimum SIP is ₹100.
Who manages the fund and what is the exit load?
The fund is managed by Abhinav Sharma. Exit load is 0.50% if units are sold on or before 90 days, and nil after 90 days.
Bottom line
Tata Ethical Fund Direct Growth Plan has a mixed profile: the recent one-year stretch is weak, but the three-year and five-year numbers show that the fund has still managed to build some long-term record. It compares poorly with the listed peers on recent returns, yet it remains a diversified equity fund with 55 disclosed holdings rather than a narrow single-theme portfolio. The High Risk label and uneven short-term path make it a better fit for investors who can hold through volatility and focus on a longer horizon.
Published on 10 September 2026 at 1:24 PM IST
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RIA disclosure
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.