March 28, 2026
RA Jainee
Tata Ethical Fund
| Fund at a Glance | |
| NAV Growth (Rs.) | 399.34 |
| NAV Bonus (Rs.) | — |
| NAV IDCW (Rs.) | 219.22 |
| Min. Investment (Rs.) | 5,000 |
| Min. SIP Investment (Rs.) | 100 |
| Min. No of Cheques | 6 |
| Benchmark | NIFTY 500 Shariah TRI |
| AUM Rs. | 3,715 Cr |
| (As on 28-Feb-2026) | |
| Expense | 0.71% |
| 1 Year Return (%) | 0.58 |
| 3 Year Return (%) | 9.89 |
| 5 Year Return (%) | 10.45 |
| 10 Year Return (%) | 12.37 |
| Return Since Launch | 13.59% |
⚖️ Sahifund Review – Tata Ethical Fund ✔
PLUS: Stability, track record, cost efficiency
Tata Ethical Fund stands out as a specialised Shariah-compliant equity option for investors who want wealth creation within ethical investment boundaries. The fund has a long operating history of over a decade, which gives confidence on process continuity and category relevance. Its portfolio is well-diversified across 62 stocks, with a balanced mix of large, mid and small caps, helping reduce over-concentration risk. The expense ratio of 0.71% is reasonable for a niche actively managed strategy. The fund also maintains a low turnover ratio (~17.6%), indicating a stable and disciplined portfolio approach. Backed by Tata Mutual Fund’s credibility, it remains a relevant choice for investors specifically seeking Shariah-compliant SIP investing over the long term.
MINUS: Large AUM, large-cap bias, momentum lag
The biggest concern is the fund’s very weak recent performance, with just 0.58% 1-year return, which is significantly below broader market benchmarks. It has also underperformed badly over 3-year and 5-year periods compared to diversified equity alternatives. While the category is specialised, the fund’s return profile has not been compelling enough to justify broad investor appeal beyond mandate-specific investing. Its portfolio constraints under the Shariah framework naturally reduce sector flexibility, which can lead to prolonged underperformance when excluded sectors outperform. Although diversified, it still remains a restricted-universe fund, which limits stock selection freedom. Investors should also note that this is not a core equity choice for performance-driven investors, and volatility plus relative underperformance can test patience over long periods.
Sahifund View (Decisive Line):
A credible option for mandate-driven ethical investors, but for pure performance-focused investors, better diversified equity alternatives are available.
👉 Apply Online | Ask Us MF Queries |
| NFO Guidance |
What lies ahead? Below we decode returns consistency, portfolio concentration, peer positioning and risk profile in detail.
Suitable For Which Investors?
Such thematic funds are avoidable for most investors because:
• They have a narrow investment focus
• Instead, diversified equity funds which invest across sectors/themes are better
If you still choose to invest:
1. Invest only through SIP
2. Have a 7+ year investment horizon
3. Be prepared to withstand interim sharp declines in investment value
Fund’s Investment Strategy:
The fund aims to provide medium to long term capital gains by investing in Sharia compliant equity and equity related instruments of well researched value and growth oriented companies.
Fund Manager:
1) Abhinav Sharma
Education: Mr. Sharma holds B.Tech degree from IIT Kharagpur & PGDCM from IIM Calcutta.
Experience: Prior to joining Tata Mutual Fund he has worked with Taurus mutual fund, ING Vysya Life Insurance as Sr. Manager (Investments), Edelweiss Securities as Manager (Research & Investments) & ICICI Lombard General Insurance as Investment Manager.
Investment Details
| Min. Investment (Rs) | 5,000 |
| Min. Addl Investment (Rs) | 1,000 |
| Min. SIP Investment (Rs) | 100 |
| Min. Withdrawal (Rs) | 500 |
| Min. No of Cheques | 6 |
| Min. Balance (Rs) | 500 |
| Lock-in Period | NA |
| Exit Load | 0.5% for redemption within 90 days |
Basic Details of Tata Ethical Fund
| Fund House | Tata Mutual Fund |
| Launch Date | 01-Jan-13 |
| Return Since Launch | 13.59% |
| Benchmark | NIFTY 500 Shariah TRI |
| Riskometer | Very High |
| Type | Open-ended |
| Assets (Rs.) | 3,715 Cr |
| (As on 28-Feb-2026) | |
| Expense | 0.71% |
| (As on 28-Feb-2026) | |
| Risk Grade | — |
| Return Grade | — |
| Turnover | 17.62% |
Trailing Returns (%)
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| Tata Ethical Dir | -10.91 | -0.34 | -7.47 | -10.27 | -10.73 | 0.58 | 9.89 | 10.45 | 13.35 | 12.37 |
| BSE 500 TRI | -9.98 | 0.47 | -8.44 | -8.85 | -7.98 | 7.02 | 15.19 | 12.41 | 13.56 | 14.47 |
Peer Comparison of Tata Ethical Fund
| Rating | 1 Year Returns | 3 Year Returns | 5 Year Returns | Expense Ratio (%) | Net Assets (Rs Cr) | Return Since Launch (%) | Exit Load (Days) | Fund Age | Turnover (%) | |
| Tata Ethical Dir | Unrated | 0.58 | 9.89 | 10.45 | 0.71 | 3,715 | 13.59 | 0.50 (90) | 13Y 2M | 17.62 |
| ICICI Pru India Opportunities Dir | Unrated | 11.39 | 22.60 | 22.02 | 0.65 | 35,666 | 20.44 | 1.00 (365) | 7Y 2M | 64.00 |
| Franklin India Opportunities Dir | Unrated | 9.54 | 26.84 | 18.90 | 0.56 | 8,428 | 16.73 | 1.00 (365) | 13Y 2M | 57.54 |
| HDFC Defence Dir | Unrated | 36.00 | — | — | 0.82 | 8,097 | 37.36 | 1.00 (365) | 2Y 9M | 16.13 |
| Sundaram Services Dir | Unrated | 7.73 | 17.22 | 16.09 | 0.68 | 4,614 | 17.90 | 1.00 (365) | 7Y 5M | 36.40 |
Portfolio Analysis of Tata Ethical Fund
| No. of Stocks | 62 |
| Top 10 Stocks | 36.00% |
| Top 5 Stocks | 22.59% |
| Top 3 Sectors | 53.26% |
| Portfolio P/B Ratio | 4.03 |
| Portfolio P/E Ratio | 27.04 |
Portfolio Breakup
| Fund | Category | |
| Average Mkt Cap (Rs Cr) | 1,12,481 | 1,39,237 |
| Giant (%) | — | — |
| Large (%) | 54.22 | 53.25 |
| Mid (%) | 29.60 | 29.30 |
| Small (%) | 16.18 | 20.06 |
| Tiny (%) | — | — |
Disclaimer: Mutual fund investments are subject to market risks. Read all scheme related documents carefully
Quicklinks
- Chanakyanipothi.com
- Staffavailable.com
- BigGaddi.com
- Latest IPO GMP
- Best Stocks to buy today
- Grey Market Premium
- Upcoming IPOs
- Subscription Status