Will L&T Equity Fund Make You a Multibagger Investor?

Investing in equity markets is not as easy as it looks, investors go through bad phases before reaching to the best outcome. The same is happening with L&T Equity Fund. The fund has delivered many benchmark-beating performances in the past, but currently, it is going through its bad days. The fund and its strategies have been researched by the financial analysts of MySIPonline, to help the investors generate wealth, and the details of which have been provided below:

Fund Overview

Launched in the year 2004, L&T Equity Fund (G) is an open-ended scheme, which invests across the market caps. A multi-cap category fund has an AUM of 2,689 Cr as on Jun 30, 2018, with an expense ratio of 2.01%. The fund’s portfolio significantly comprises equity and equity-related securities with 98% of it. The secondary investment of the fund is in debt instruments, to maintain the limited required liquidity.

The average market capitalisation of the fund is Rs 69,658.30 Cr as on Aug 1, 2018. This capital is invested 52.39% in giant companies, 19.13% in large-cap companies, 21.35% in mid-cap, and 7.13% in small-cap companies. The fund is biased towards large-caps as they have positive growth.

Currently, it is investing in 64 companies from various sectors which majorly include finance and banking, construction, technology, services, FMCG, engineering sector, etc. The top five companies have 25.82% of total assets which are HDFC Bank, Larsen and Toubro, HDFC, IndusInd Bank, and Kotak Mahindra Bank.

Past Performance Analysis

L&T Equity has delivered the returns of 17.55% since its launch. The highest annualised returns of the fund were in the year 2009 with 86.14%. The fund has generated negative alpha on the basis of the past three years, which is -1.55%, as provided on 30 June 2018 by the financial experts of MySIPonline. 

The compounded returns of the fund for the past three, five, and seven years were 9.77%, 18.99%, and 13.38%, respectively. The fund has outperformed its benchmark, S&P BSE 500 TRI Index in the five and seven years compounded returns. However, it has underperformed the category’s average in all the years’ compounded returns.

The annualised returns of the fund for the year 2014 were 50.27%, 0.29% in 2015, 3.58% in 2016, and 34.19% in 2017. It has underperformed its benchmark in the past two years. Though, the fund has the capability to provide good returns in the long run.

Fund Manager

L&T Equity Fund Growth has been co-managed by Mr. S N Lahiri and Mr. Karan Desai. Mr. Lahiri has been associated with the fund since 2012. He is the Chief Investment Officer of equities in the L&T Mutual Fund. His convictions of taking a risk in companies with a strong background, high growth make it distinct from other fund managers. He follows the bottom-up approach of investment, keeping the growth companies in its portfolio.

Mr. Desai has been looking after the foreign investments of the fund. He has been associated with the fund since 2017. Both the fund managers use to invest in approximately 60 to 70 companies most of the time, with considerable diversification which helps them to gain profits.

The NAV of L&T Equity Fund G is Rs 84.748 as on Aug 1, 2018. The investors who have an appetite of tolerating a moderately high-risk should invest in the fund. The ideal investment horizon in the fund for an investor looking for wealth creation is five years or more. For more information regarding the fund and investment in the mutual fund, connect with our experts at MySIPonline.

How to Axe Your Tax Problem with TATA India Tax Savings Fund?

Paying tax is inevitable. It is basically the fee that you pay for living in a country, for using their facilities, and for being called their citizens. When such an important fee is evaded or delayed, the government is tempted to take strict actions. But why would one not pay his taxes properly? While one of the reasons that could be given for such a bold step is the high tax rates, lack of proper knowledge has a bigger role in triggering such steps.

Hence, to ensure that the Indian citizens are paying their taxes properly and are not cheating their government, TATA India Tax Savings Fund was introduced. This fund is the answer to all the tax problems that you might have, as it provides a horde of benefits. MySIPonline greatly admires the fund for its outstanding servility and performance that has lured many people to adopt legal ways of paying their taxes, rather than trying to evade it.

In this write-up, many interesting facts about TATA India Tax Savings Fund (G) have been given, which will make you wonder why you didn’t know them before. So, let’s get started!

The Introduction 

TATA Mutual Fund, one of India’s oldest and largest asset management companies, have always been known for providing superb solutions to the investment problems. In a country like India where tax is seen as a significant issue, TATA India Tax Savings Fund (G) acts as a pain reliever. It is an ELSS plan that qualifies for the many benefits allowed by the law, which are discussed later in this article. By giving phenomenal performances and helping innumerable people in sorting their taxes out, the fund has scored the rare four star rating from CRISIL which it has been holding on to for past many years. 

The Advantages

Investing in TATA India Tax Saving Fund Growth via an SIP plan purchased through MySIPonline is the ultimate pathway to a glorious investment plan. There are many advantages attached to investing in this fund as described below: -

• Tax Advantage :Section 80C of the Income Tax Act, 1961 states that an investment in an ELSS plans (and other authorised alternatives) can fetch a combined deduction of Rs. 1,50, 000 from the annual taxable income. This in turn will lead to a saving of Rs. 46, 800 from the annual tax bill, which is a superb saving. Imagine the amount you would have saved on your taxes in the next five to ten years!
  
• Excellent Rewards : Besides helping in axing the taxes, TATA India Tax Savings Fund (Growth) also provides handsome rewards. In the recent past, the fund has scored results that were as high as 20.86%, beating the benchmark performance (15.30%) and the peer returns (19.57%). Further, with this number the fund stands amongst the top five returns churners in the ELSS category.
  
• Least Lock-in : 
  Out of the many resorts available for saving taxes, ELSS plans are considered to be the best. This is because they provide the highest returns and also have the least lock-in period. Hence, TATA India Tax Savings Fund – Regular Plan (G) provides an opportunity for inculcating healthy investments habits, since the lock-in of three years doesn’t let you withdraw your funds prematurely and also saves you from paying the exit load.  

Hence, if you are facing a lot of trouble in controlling your soaring tax bills, then you must invest in TATA India Tax Savings Fund. Buy an SIP plan in this fund via MySIPonline for a flawless start to tax saving.