L&T Equity Fund - Leading You Towards a Bright Future

L&T Equity Fund Growth is a dream scheme for investors who seek a long-term investment option. It was launched by L&T Mutual Fund on May 16th, 2005, with an investment objective to facilitate investors invest across different caps such as large-cap, mid-cap, and small-cap equities. This mixture of equity is great for investment as the required diversification is maintained, to gain out of them maximum, by putting the intelligence at work from time to time. MySIPonline, the leading online platform, after conducting intensive research has mentioned it in its Top Ranking Funds List which itself is an indicator of its performance. It is the result of hard work that has been put in, that the assets under management has reached Rs. 2798 crores as on July 31st, 2018. Let’s see how the allocation of these assets have been done in the most profitable way to help investors get the maximum benefit out of it.

L&T Equity Fund - The Asset Allocation

The returns that a scheme generates depend on where the assets have been invested. It takes huge consideration of facts to finally reach a rational selection of securities to invest in. L&T Equity Fund is one of those schemes that has its assets engaged in the most productive stocks. The experts at MySIPonline have deeply researched the portfolio that it holds, in order to fulfill its investment objective. Let’s have a look at it.

  • Portfolio Break Up : This scheme by L&T Equity Fund may invest in the range of 80% to 100% in equity and equity related instruments. However, the normal allocation of net assets done in equities is 95% with high risk involvement on the principal amount invested. It may or may not invest in money market instruments with the maximum limit being up to 20% of the net assets. But normally it invests 5% with the risk that follows being low to medium. The overall risk is moderately high as it invests majorly in equity, which points to the fact that investors should have a good risk bearing appetite. As on July 31st, 2018, this scheme has invested 97.84% in Equity, 1.78% in debt, and 0.38% in cash and cash equivalents.
  • Allocation in Companies : At MySIPonline, it is believed that the performance of the scheme depends on how it allocates its assets. The fund managers should have intense market knowledge as it is the only key that can help in selecting the right stocks for making investments. The funds of this scheme are managed by Mr. S.N. Lahiri and Mr. Karan Desai (he is looking after investments in foreign securities) who are following the bottom-up approach while picking the stocks. This means that the stocks of those companies are selected whose individual working style and strategy are such that they won’t get affected by the overall industry’s working.

The top ten companies in which it has invested the assets as on July 31st, 2018 are HDFC Bank, HDFC, Larsen & Toubro, IndusInd Bank, Tata Consultancy Services, Kotak Mahindra Bank, Hindustan Unilever, ITC, The Ramco Cements, and Graphite India. All these companies are spread across sectors such as Financial, Construction, Technology, FMCG, and Engineering. This scheme has majorly allocated 31.33% in the financial sector followed by 14.77% in construction sector which is a good indicator. As currently, the financial sector is going through an expansion phase with old ones expanding and new entities entering the market leading to overall growth. Turnover of construction industry is also expected to increase in the coming years.

L&T Equity Fund - Points to be Kept in Mind While Investing

To invest in this great equity scheme, all you need to do is follow the simplest and time-saving online procedure of investment at this leading platform, MySIPonline. The hassle-free procedure would be finished before you even realizes. But, before that let’s take a small tour of the points that you should know.

  1. Investment Amount - The minimum investment amount that you need to invest in this scheme for the first time is Rs. 5000 and in case, you are an existing investor, then the amount is Rs. 1000 only. You may even invest in this scheme through SIP mode of investment but before that don’t forget to use the SIP calculator.
  2. Entry and Exit Load - There is no load that needs to be incurred while entering L&T Equity Savings Fund. No fund house wants that their investment functioning to get affected by the switch-out of funds. This is the reason that 1% of the applicable NAV is to be paid as exit charge if an investor opts to quit within one year of investment.
  3. Net Asset Value - L&T Equity Savings Fund NAV as on August 06th, 2018 was Rs. 84.919 which has gone down by 0.10%. NAV is the value at which the units will be allotted to the investors, so you should invest accordingly. For example, if you invest Rs. 5000 in this scheme, the units that will be added to your account will be 58.88 (5000 / 84.919).

These were the main investment-related points that every investor should know about L&T Equity Fund by L&T Mutual Fund. Talking of performance, it has yielded five year returns of 19.78% which is comparatively more than the returns yielded by its benchmark NIFTY 500 TRI as on August 06th, 2018. The standard deviation of this scheme is 14.24% as on July 31st, 2018 which means the average rate of performance will get deviated by this much rate whether negatively or positively. This rate has been calculated on the basis of the calendar month returns for the last three years. If you wish to discuss more regarding any one of the above given points, you may contact the experts here at MySIPonline any time without paying any additional charges. Don’t forget to read our news and blog section to remain updated about the current trends and important facts about mutual funds.