L&T Mutual Fund, offers a total 29 funds under various categories, is amongst the top AMCs of the country. Being managed professionally, the fund house offers multiple benefits to the mutual fund investors. Therefore, it is necessary that investors choose the best funds from the universe of funds, which not just offer good returns but also suit their individual portfolio.
Incorporated in 1996, L&T AMC is currently managing the assets of Rs 71118.29 Cr, as on June 30, 2018. The fund house aims at providing the long-term risk-adjusted returns to the investors. Following the investment process of GEM, i.e., generation of ideas, evaluation of companies, and monitoring of companies, the fund house has been providing various funds which are performing well. The top-performing funds of the fund house have been provided in the article further:
Top Performing Funds of L&T Mutual Fund:
- L&T Emerging Businesses Fund (G)
- L&T Infrastructure Fund (G)
- L&T Hybrid Equity Fund (G)
- L&T Tax Advantage Fund (G)
- L&T India Value Fund (G)
Funds of various categories, the top performing funds of l&t mutual fund have specific investment style. The fund management team and fund managers stay away from expensive stocks that have become more expensive in this year’s flight of quality. The strategies of the funds with their returns have been provided below:
L&T Emerging Businesses being a small-cap fund invests largely in good-quality and growth businesses at a reasonable valuation. The fund has given least exposure to large-cap companies and is outperforming the benchmark as well as peers. Its compounded returns for the past three years were 20.60%, as the fund was launched in the year 2014.
A thematic fund of the fund house L&T Infrastructure Fund, invests mainly in the infrastructure sector companies. Providing highest exposure to the construction companies in its portfolio, the fund manager Mr Soumendra Nath Lahiri has delivered the returns of 27.98% in the past five years. He fundamentally invests in the companies which have the potential to deliver excellent returns in the long run. The fund is significantly known for its diversified portfolio, which changes composition across the market cap according to the market timings.
Another fund which falls in the category of aggressive hybrid, L&T Hybrid Equity Fund invests its 60-80% of corpus in equity and equity-related securities. The fund manager selects the companies by assessing the business model, financial parameters, and business expectations of the company. The debt portfolio of the fund is invested in the AAA, and SOV rated securities. The fund has outperformed the index and peers in the past five year returns by delivering the returns of 19.61%.
A fund that has performed in all the market phases is L&T Tax Advantage Fund. The mutual fund scheme of ELSS category helps the investors to save income tax under Section 80C of Income Tax Act, 1961 up to Rs 1.50 Lac. Providing low exposure to small-cap, it is an open-ended fund with a minimum lock-in period of 3 years. The lower concentration and the bottom-up approach of the fund manager have been one of the biggest reasons for its good performance so far. In the past five years, the fund has delivered the compounded returns of 21.33%, beating its benchmark as well as peers.
With the recent correction in the mid and small-cap companies, L&T India Value Fund (G) invests in the value stocks. As per the fund manager, Mr Venugopal Manghat, the money of investors has moved from well-performing stocks to high predictable growth stocks despite their rich valuation. These strategies lead to funding to provide the returns of 27.88% in the past five years beating its benchmark and peers.
All these strategies of the funds of L&T have helped it to deliver competitive returns to the investors. The fund managers try to balance the portfolio by allocating the assets with a correct mix of sectors and market capitalization. They try to give the opportunity to the companies that make them believe in providing better returns over a three to five-year time horizon.
Looking for investment in the top performing funds of L&T Mutual Fund? Have a glance at the details provided in the article.
Dishika Baheti is a financial analyst working with MySIPonline. She researches and writes about different mutual funds to provide the best of the industry to investors.
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