L&T Midcap Fund: Superior risk-reward profile

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 17.96%, the fund has outperformed both the benchmark index (14.01%) and the category average (15.89%).


Growth of Rs 10,000 vis-a-vis category and benchmark

BASIC FACTS
Date of launch: 9 Aug 2004
Category: Equity
Type: Mid cap
Average AUM: Rs 3,066.22 CR
Benchmark: NIFTY MIDCAP 100 TOTAL RETURN INDEX

WHAT IT COSTS
NAVs(As on 7 Aug 2018)
Growth option: Rs 142
Dividend option: Rs 49
Minimum investment: Rs 5,000
Minimum sip amount: Rs 500
Expense ratio (As on 30 JUN 2018)(%): 2.01
Exit load: 1% for redemption within 365 days

FUND MANAGERS
Soumendra Nath Lahiri & Vihang Naik
Tenure: 5 Years / 2 Years
Education: B.TECH AND PGDM /CFA AND TYBMS

WHERE DOES THE FUND INVEST?

HOW RISKY IS IT?
The fund has a superior risk-return profile compared to its peers.

Wherever not specified, data as on 31 July 2018. Source: Value Research

Should You Buy?
This mid-cap fund has consistently outperformed in recent years and has been among the top performers in its category. It takes a risk-conscious approach and runs a highly diversified portfolio, limiting exposure to individual bets. The fund manager prefers a long tail in the portfolio to mitigate risk.

But he is index agnostic with most of his bets outside the benchmark index. He maintains a big chunk of the portfolio— around 70%—in quality bets but shies away from paying too high a premium for the quality. The remaining fund portfolio mostly comprises short-term tactical bets with deep value—where there is potential for faster uptick. With a superior risk-return profile compared to most of its peers, this fund has emerged a worthy pick in its category.