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L & T Mutual Fund: Overview

About L&T Asset Management Company
 

L&T Asset Management Company Ltd is one of the most prominent asset management companies in India offering a broad range of mutual funds and other market traded instruments. The company is a part of Larsen & Toubro Group which has been a household as well as global player dealing in infrastructure, engineering, construction, electrical and electronics, information technology and financial services for years. In India, L&T is known as one of the largest and most valued companies in the list of top 20 companies in India as per market capitalization in India's private sector. The L&T Group prides itself on its values of honor, transparency, integrity and accountability towards both its customers and various stakeholders.
 

L&T Finance Holdings Limited was incorporated as a non-banking financial company by Larsen & Toubro Group Limited in the year 2008. The purpose of the subsidiary was to manage holdings and various investments of the L&T Group in its financial services businesses. With the acquisition of DBS Cholamandalam AMC in 2010 and Fidelity’s Mutual Fund business in India, the L&T Mutual Funds business was created and currently the AMC provides a complete range of investment opportunities including equity, fixed income as well as hybrid, domestic and international funds. 
 

The Key Strengths of L&T Finance Holdings Limited (LTFH)
 

  • LTFH had a market capitalization of nearly Rs. 13,400 crores as on February 28, 2013 and has grown further with time. It has a strong retail presence with more than 380,000 investors.
  • The consolidated asset under management for L&T AMC exceeds Rs. 40,000 crores and it features a strong distribution network of more than 100 branches and 500 locations nationwide
  • Apart from its branch network, L & T Finance Holdings Limited serves more than 900,000 bondholders and about 1 million unit holders through its many subsidiaries.
  • What makes LTFH one the most preferred AMCs, is its focus on corporate governance, which is built on a rich heritage of transparent governance.
  • L&T Mutual Funds scheme are crafted to create wealth for all its stakeholders and deliver constant long-term performance. 
  • The funds offered by the AMC have historically generated the best value among various investment solutions across multiple asset classes.
  • Citibank, N.A. and First International Financial Centre (FIFC) act as the Custodians and Fund Accountants for LTFH.

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  • With Paisabazaar.com you get online access to various LTFH funds through the same portal.
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  • All the funds details and NAV can also be checked and compared online.
  • Apart from the purchase option, Paisabazaar.com also provides various financial tools such as an online calculator, which can help an investor know
  • The Paisabazaar MF portal is designed to help you compare and make an educated decision regarding which L&T AMC fund is best suited to your requirements.

Products Offered by L&T Mutual Funds

  • L&T Finance Holdings Limited is the major Sponsor of the L&T Investment Management company which caters to the financial needs of its numerous customers across India. L&T Finance Holdings Limited was formed by Larsen & Toubro Limited ("L&T") in the year 2008, with the strategic commitment of holding all the investments of the L&T Group in its financial services businesses.
  • The group is registered as a non-banking financial institution that cannot accept public deposits.  
  • L&T Finance Holdings Limited offers various products across multiple segments such as infrastructure finance, term corporate loans, channel finance, construction equipment and financing commercial vehicles, portfolio management services, distribution of insurance and mutual fund products.  
  • The products offered by L &T Mutual Fund are historically known for delivering steady and superior long-term investment returns.
  • The core of each product is the Fundamental Analysis and Stock Selection. The fixed income products combine macro-economic factors and the issuer selection is done on the basis of careful credit analysis.
  • The bouquet of mutual fund products come with a well-differentiated range of investment options which include 14 equity funds, 13 fixed income funds, 2 hybrid funds, a fund-of-funds and a regular opportunity fund option.

The Unique Features of L&T Mutual Fund Schemes

  • L&T Mutual Fund's investment philosophy is centered on delivering consistent and superior long-term investment performance. Fundamental analysis is the core: stock selection is based on in-depth research and fixed income investing combines macro-economic factors and issuer selection based on credit analysis.
  • The main emphasis of L&T Mutual Fund is on delivering superior long-term risk-adjusted performance.
  • A rigorous and disciplined approach is followed towards investment and risk management.
  • Analysts and fund managers actively identify new ideas by industry experts and regulators based on external research and reports.  For equity investing, the search range includes investment team meetings, a company's management committee, competitors approach, suppliers.
  • And for fixed income funds, investment ideas are conceptualized on the basis of team strategy meetings, in-depth interaction. Macro analysis and internal as well as external research ideas. 
  • The pre investment evaluation of companies is done based on various parameters such as liquidity, market capitalization, ownership and other parameters.
  • Manufacturing or Monitoring of portfolios is conducted only after all the ideas are generated and evaluated. After this, the fund manager picks only those funds that have the most potential.
Products Offered by L&T Mutual Funds
  1. L & T Equity Funds
     
    • The funds are designed to generate long-term capital appreciation from a diversified portfolio consisting of primarily equity and equity related securities.
    • This includes equity derivatives in domestic markets with a main focus on emerging companies such as in small cap stocks.
    • There is no assurance that the objective of the scheme will be realized and the scheme does not assure or guarantee any returns.
    • The scheme could also additionally invest in Foreign Securities.
       
  2. L & T Fixed Income Funds
     
    • L&T fixed income funds are designed to provide constant returns with comparatively lower risk and high liquidity.
    • The investment is primarily in high quality debt and money market instruments.
    • The funds have an objective to deliver reasonable returns with lower volatility and higher liquidity through a portfolio of debt and money market instruments.
       
  3. L & T Hybrid Funds
     
    • L & T hybrid funds are designed to create long-term capital appreciation by investing mainly in equity and equity-related securities
    • Additional reasonable returns are also generated through a portfolio of debt and money market instruments.
    • The fund will predominantly invest in equity with a relatively smaller exposure in debt instruments.
    • This provides investors with the dual benefit of high returns potential of equities and the safety associated with various debt products. 
       
  4. Fixed Maturity Plans
     
    • L & T fixed Maturity Plan is suitable for investors seeking capital growth through blended investments in debt and fixed income securities which includes various money market instruments.
       
  5. L & T ELSS / TAX Saving Funds
    • L&T AMC’s Equity Linked Saving Schemes (ELSS) are equity mutual funds that have a lock-in period of 3 years.
    • A perfect scheme for investors who wants to chalk out their tax plan well in advance
    • The scheme qualifies for deduction under Section 80C of the Income Tax Act, 1961, which allows deduction of up to Rs. 150,000 under Section 80C.
    • The L&T ELSS scheme aims to provide both tax saving benefits as well as a relatively higher growth potential.
    • It has a minimum of 80% exposure in equity and maximum 20% exposure in debt, money market instruments or cash.
    • As compared to other investment avenues, ELSS provides the lowest lock-in period and relatively higher potential for returns due to its linkage to the equity markets.
    • Investment in ELSS could provide capital growth over the long term since they invest in the equity market.
    • Moreover, L&T ELSS funds have a short lock-in period of 3 years whereas the maturity period of NSC is 6 years and Public Provident Fund is 15 years.
    • Since it is an equity linked scheme, its earning potential is very high and the investor can opt for the dividend option and get some gains during the lock-in period.
    • Equities over a longer time frame have the potential to outperform traditional instruments like NSC and PPF.

A Few Leading Mutual Funds from L&T AMC

Fund Name

Type of Fund

L&T Banking and PSU Debt Fund

Income

L&T Flexi Bond Fund

Income

L&T Floating Rate Fund

Income

L&T Monthly Income Plan

Income

L&T Resurgent India Corporate Bond Fund

Income

L&T Short Term Income Fund

Income

L&T Ultra Short Term Fund

Income

L&T India Value Fund

Growth

L&T Infrastructure Fund

Growth

L&T Mid Cap Fund

Growth

L&T Liquid Fund

Liquid

L&T Gilt Fund

Gilt

L&T Tax Advantage Fund

ELSS

L&T Tax Saver Fund

ELSS

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