Although TATA INDIA TAX SAVINGS tax-saving fund outperformance had been inconsistent, it has put a strong showing in the past few years. A market-cap and sector-agnostic fund, it adopts a balanced approach to portfolio allocation. However, its bets in the mid and small-cap space seem to be on the higher side when compared to peers. The fund manager prefers growth-oriented businesses with high capital efficiency.

He builds the portfolio with a basket approach--picking multiple businesses, across sizes, within each chosen sector. This results in a slightly bulky portfolio. While the manager is not averse to investing heavily on his bets, he prefers to avoid significant concentration in the portfolio.

A few more years of consistent outperformance should make this a worthy pick in this segment.