L&T Equity Fund: Inconsistent performer, has lagged peers
With a 10-year return of 17.86%, the fund has outperformed the benchmark index (16.98%) but fared below the category average (18.01%).
By ET Bureau |
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The fund’s performance has not been consistent in recent years, and it has mostly lagged behind peers.
ET Wealth collaborates with Value Research to analyse top mutual funds.
We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.
L&T Equity Fund
How has the fund performed? With a 10-year return of 17.86%, the fund has outperformed the benchmark index (16.98%) but fared below the category average (18.01%). The fund has outperformed its index but lagged behind category average over the past decade. Annualised performance (%) The fund has struggled to outperform across time periods. As on 4 Dec 2018
Yearly performance (%) The fund has mostly lagged behind peers in recent years As on 4 Dec 2018
BASIC FACTS Date of launch: 16 May 2005 Category: Equity Type: Multi cap Average AUM : Rs 2,570.80 Crore Benchmark: S&P BSE 500 Total Return Index
Fund manager: Soumendra Nath Lahiri Tenure: 6 years Education: B.Tech and MBA
Where does the fund invest? The fund’s top picks are mostly index heavyweights. How risky is it? The fund’s risk-return profile is on par with its category average. Wherever not specified, data as on 31 Oct 2018. Source: Value Research
Should You Buy This multi-cap fund has no particular market-cap bias. But, over the past few years, it has been tilted in favour of large-caps, resulting in a portfolio marketcap that is much higher than most peers. It runs a strict bottom-up, ‘go anywhere’ approach with no sectoral preferences. The fund’s portfolio is reasonably diversified. It takes a few large positions in its high-conviction bets and smaller positions in the remaining picks, resulting in a skew towards the top-end of the portfolio.
The fund’s top picks suggest an emphasis on management pedigree and capital efficiency. The fund’s performance has not been consistent in recent years, and it has mostly lagged behind peers. The presence of a seasoned fund manager provides some comfort, but investors should wait for sustained outperformance
