L&T India Value fund is a value-oriented fund which despite being a late entrant in its category, attracted thousands of investors. It was launched in January 2010 and faced a rough market right after the launch after which it maintained a consistent growth and outperformed peers and indices every year since then. The financial experts at MySIPonline have done comprehensive research on the scheme to provide better assistance to the investors.
What Are Value Oriented Funds?
These are the type of mutual funds which predominantly follow the value style of investment. In such schemes, the fund manager seeks the stocks which are underpriced or are priced below their intrinsic value. This scheme takes advantage of the downfall of the stock market to withdraw gains from it. It is considered riskier than the growth style of investment.
How Did It Perform?
The annual returns of L&T India Value Fund have stayed above the benchmark and category’s average regularly except for the year after its launch. In 2015, L&T India Value Fund generated 74.06% returns which prove what the scheme is capable of offering in the favourable market condition. Since inception, it has produced an annualised return of 16.62%.
Trailing Returns (%) | 1-M | 3-M | 1-Y | 3-Y | 5-Y | 7-Y |
Fund | -0.93 | 0.29 | 0.51 | 15.35 | 26.11 | 20.81 |
NIFTY 200 TRI | -0.45 | 4.26 | 11.35 | 15.33 | 17.47 | 14.66 |
Category | -0.75 | 0.48 | 4.48 | 13.94 | 22.1 | 16.91 |
Rank within Category | 8 | 9 | 9 | 6 | 3 | 1 |
What Is the Portfolio Structure?
The portfolio comprises a large number of stocks with a decent PE ratio. A total of 84 shares are present in the portfolio with a PE ratio of 21.23%. The portfolio structure is similar to a multi-cap fund as the corpus invested in large-cap stocks are same as that of mid and small-cap stocks. It has a substantial allocation in mid-cap stocks due to which it possesses high risk. Majority of the corpus is allocated in the financial, construction, technology, energy, and healthcare sectors. Reliance Industries, HDFC, L&T, ITC, and Infosys are the top holders of the scheme.
Risk Parameters
Risk Measures (%) | Mean | Std Dev | Sharpe | Sortino | Beta | Alpha |
Fund | 15.86 | 15.98 | 0.59 | 0.82 | 0.81 | 0.44 |
NIFTY 200 TRI | 15.56 | 13.54 | 0.67 | 1.1 | - | - |
Category | 15.13 | 15.42 | 0.56 | 0.85 | 0.8 | -0.19 |
Rank within Category | 8 | 5 | 6 | 6 | 6 | 6 |
Number of Funds in Category | 13 | 13 | 13 | 13 | 13 | 13 |
The risk factor of L&T India Value Fund is high, but the risk to reward ratio is much appreciable as the Sharpe and Sortino ratios are higher than the category’s average despite high standard deviation and beta.
About the Fund Manager
L&T India Value Fund is managed by
Mr Karan Desai and Mr Venugopal Manghat who are the senior fund
managers at L&T Mutual Fund. Mr Manghat has been operating the
scheme since November 2012 and has never allowed it to provide lesser
returns than the benchmark and category’s average. He was
previously associated with Tata Asset Management Company. Mr Desai
has joined him in February 2017 and possesses significant experience
from prominent financial firms.
Who Can Invest?
L&T India Value Fund is suitable
for the investors who seek to investing in quality stocks at low
prices to gain long-term capital appreciation. It possesses higher
risk than the category’s average and is not suitable for the
investors who cannot tolerate high risk.
