L&T Midcap Fund: Fine pick for conservative investors

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.

HOW HAS THE FUND PERFORMED?
With a 10-year return of 14.79%, the fund has outperformed the category average (13.45%) and the benchmark return (7.02%).

BASIC FACTS
DATE OF LAUNCH: 8 Sep 2004
CATEGORY: Equity
TYPE: Small Cap
AVERAGE AUM: Rs 573.90 cr
BENCHMARK Nifty Free Float Midcap 100 Index

WHAT IT COSTS
NAVS* GROWTH OPTION: Rs 110.92
DIVIDEND TRIGGER (A): Rs 41.88
MINIMUM INVESTMENT: Rs 5,000
MINIMUM SIP AMOUNT: Rs 500
EXPENSE RATIO^ (%): 2.92
EXIT LOAD: 1% for redemption within 365 days
*As on 1 Feb 2016
^As on 30 Sep 2016

FUND MANAGER: Soumendra Nath Lahiri
TENURE: 3 YEARS AND 7 MONTHS
Education: B.Tech and PGDM

WHERE DOES THE FUND INVEST?

HOW RISKY IS IT?

All data on this page as on As on 31 Jan 2016, unless specified
Source: Value Research

SHOULD YOU BUY?
This mid-cap fund takes a sizeable exposure to small caps. Although not among the high alpha generators—margin of return compared to the benchmark index—it boasts of a healthy track record of consistent outperformance. The fund’s portfolio is heavily diversified and its risk-conscious approach is evident in the limited exposure taken to individual stocks—not exceeding 3% of the corpus. The fund manager adopts a free-wheeling approach to stock selection, with 75% of the portfolio weight comprising stocks not part of the benchmark index. He scouts for opportunities arising out of the market shift towards organised sector and high growth of smaller sectors. While other mid-cap funds offer a better return profile, this fund can be a decent pick for more conservative investors.