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Best L&T Debt Mutual Funds

One of India’s leading asset management companies, L&T Investment Management Limited, began its journey in 1997. L&T Finance Holdings Limited, a listed company and registered under RBI as an NBFC, is the main sponsor of this AMC. As of June 2020, this company has managed asset worth Rs.58361.93 crore.

Currently, the AMC offers 35+ mutual fund schemes, including the best L&T debt mutual funds.

Debt mutual funds invest in money market instruments and debt securities like government and corporate bonds. This MF kind has different classifications based on the duration or issuer of the underlying securities. Premised on maturity periods, debt MFs are classified into overnight, short, ultra-short, medium, and medium-long duration funds, among others. These are categorised as gilt, banking and PSU, corporate, and credit risk funds based on issuers of the portfolio constituents. 

Debt MF schemes offer better liquidity and stable returns while involving a low-cost structure. They are also less volatile than equity mutual funds. The downside to debt funds is they usually provide less significant returns compared to their equity counterparts.

Nevertheless, the exact scale of these returns and their drawbacks will vary, depending on the type of debt fund one opts for. Investors can choose the best L&T debt mutual funds 2022 from among 10+ schemes. These comprise various options with varying scales of risks and returns. 

Taxability

Nonetheless, before investing in any of those, individuals may want to know the taxation that gains on debt MFs entail. 

Short-term Capital Gains Tax: If investors decide to liquidate their debt fund investments before the 3-year mark from the date of purchase, they are liable to pay STCGT. In such cases, the capital gains on any investment will be added to the annual income of investors. Thereafter, they need to pay according to the income tax slab they qualify for. For instance, if you belong to the 10% tax slab, you are liable to pay 10% + 4% cess as STCGT.

Long-term Capital Gains Tax: Capital gains on any debt fund realised after the third year of investment comes under LTCGT. If investors redeem units of the best L&T debt mutual funds after this period, they will incur a 20% tax on the amount after indexation. In case they do not opt for indexation benefits, the tax rate is 10%. 

TDS: Tax deducted at source is not applicable to debt mutual funds.

Understanding the taxability of debt mutual funds is important to make a correct decision about investments and liquidating them. Also, a comprehensive idea about the factors to consider beforehand is crucial in this regard. 

Factors to Consider Before Investing

Investment objective: The first point to consider is the objective of investment. It is vital to be clear about it to choose the right scheme from the top L&T debt mutual funds. They can select a plan according to their financial targets and the timeframe within which they plan to achieve it. 

Risk appetite: Debt funds are not prone to market risks but considerably vulnerable to credit, interest rate, and inflationary risks. A debt fund that has invested significantly in long-term securities will perform well in a falling interest rate regime and vice versa. Credit risk is considerable when a fund invests predominantly in bonds of low-rated issuers. And, lastly, the inflationary risk is when inflation rates outstrip returns by the fund. Hence, consider the associated risk factor to determine the best L&T debt mutual fund to invest in.

Past performance of a fund: It is vital to review the earlier performance of any fund before deciding. Preceding performance may not be a sign of possible returns. But, it offers insights into a scheme’s returns under varying market conditions. It is a significant determinant of a scheme’s fundamental strength, which hints at its risk and liquidity management framework. 

Holding analysis: Reviewing this parameter is also vital as it shows where the resources are invested. Additionally, it also provides a basic idea about the level of returns to expect and gauge the losses to account for.

Expense ratio: The expense ratio of a fund denotes the aggregate expenses of managing a mutual fund scheme. Denoted as a %, it is subtracted from the returns. Hence, individuals may want to compare this parameter when comparing the best L&T debt mutual funds.

Exit load: Asset Management Companies charge exit load if an investor pulls out from a scheme before a stipulated time, mentioned in the scheme-related documents. However, certain plans may not include this charge, depending on the scheme. 

Direct and regular plans: Direct plans allow investors to directly purchase units of a debt MF from L&T Investment Management Limited. It involves no intermediary. Contrarily, in regular plans, one needs to invest through a third party like a broker. Resultantly, the expenses of direct plans are lower than regular ones. Also, direct plans register a higher NAV compared to their regular counterparts.

Selecting the best L&T debt mutual funds might be a tough ask for inexperienced investors. However, evaluating the points mentioned above carefully and a basic understanding of mutual fund dynamics can be a good starting point.

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List of Lt Mutual Funds in India

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
L&T Emerging Businesses FundEquityVery High17.5%3₹8,014
L&T Midcap FundEquityVery High2.2%2₹6,569
L&T India Value FundEquityVery High7.6%3₹7,690
L&T Infrastructure FundEquityVery High13.9%3₹1,377
L&T Low Duration FundDebtLow to Moderate3.6%3₹878
L&T Tax Advantage FundEquityVery High0.4%2₹3,239
L&T Hybrid Equity FundHybridVery High0.4%3₹4,832
L&T Money Market FundDebtLow to Moderate3.3%2₹1,053
L&T Liquid Plan FundDebtLow to Moderate3.5%2₹5,013
L&T Short Term Bond FundDebtLow to Moderate2.1%3₹4,025
Aditya Birla Sun Life International Equity FundEquityVery High12.7%0₹129
L&T India Large Cap FundEquityVery High3.0%2₹706
L&T Ultra Short Term FundDebtLow to Moderate3.5%3₹1,897
Aditya Birla Sun Life International Equity FundEquityVery High26.1%0₹102
L&T Large and Midcap FundEquityVery High4.1%2₹1,494
View All

Let's have a closer look

Now let us jump and check about these top 10 mutual fund schemes.

L&T Emerging Businesses Fund Direct Growth

Fund Performance: The L&T Emerging Businesses Fund has given 20.28% annualized returns in the past three years and 13.2% in the last 5 years. The L&T Emerging Businesses Fund belongs to the Equity category of L&T Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in L&T Emerging Businesses Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹8,014Cr
1Y Returns17.5%

L&T Midcap Fund Direct Growth

Fund Performance: The L&T Midcap Fund has given 13.3% annualized returns in the past three years and 9.31% in the last 5 years. The L&T Midcap Fund belongs to the Equity category of L&T Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in L&T Midcap Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹6,569Cr
1Y Returns2.2%

L&T India Value Fund Direct Growth

Fund Performance: The L&T India Value Fund has given 13.63% annualized returns in the past three years and 10.11% in the last 5 years. The L&T India Value Fund belongs to the Equity category of L&T Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in L&T India Value Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹7,690Cr
1Y Returns7.6%

L&T Infrastructure Fund Direct Growth

Fund Performance: The L&T Infrastructure Fund has given 10.97% annualized returns in the past three years and 8.5% in the last 5 years. The L&T Infrastructure Fund belongs to the Equity category of L&T Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in L&T Infrastructure Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹1,377Cr
1Y Returns13.9%

L&T Low Duration Fund Direct Growth

Fund Performance: The L&T Low Duration Fund has given 4.93% annualized returns in the past three years and 6% in the last 5 years. The L&T Low Duration Fund belongs to the Debt category of L&T Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in L&T Low Duration Fund via lump sum is ₹10,000 and via SIP is ₹1,000.

Min Investment Amt₹10,000
AUM₹878Cr
1Y Returns3.6%

L&T Tax Advantage Fund Direct Growth

Fund Performance: The L&T Tax Advantage Fund has given 9.67% annualized returns in the past three years and 7.94% in the last 5 years. The L&T Tax Advantage Fund belongs to the Equity category of L&T Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in L&T Tax Advantage Fund via lump sum is ₹500 and via SIP is ₹500.

Min Investment Amt₹500
AUM₹3,239Cr
1Y Returns0.4%

L&T Hybrid Equity Fund Direct Growth

Fund Performance: The L&T Hybrid Equity Fund has given 9.28% annualized returns in the past three years and 7.78% in the last 5 years. The L&T Hybrid Equity Fund belongs to the Hybrid category of L&T Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in L&T Hybrid Equity Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹4,832Cr
1Y Returns0.4%

L&T Money Market Fund Direct Growth

Fund Performance: The L&T Money Market Fund has given 5.43% annualized returns in the past three years and 6.32% in the last 5 years. The L&T Money Market Fund belongs to the Debt category of L&T Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in L&T Money Market Fund via lump sum is ₹10,000 and via SIP is ₹1,000.

Min Investment Amt₹10,000
AUM₹1,053Cr
1Y Returns3.3%

L&T Liquid Plan Direct Growth

Fund Performance: The L&T Liquid Plan Fund has given 4.2% annualized returns in the past three years and 5.41% in the last 5 years. The L&T Liquid Plan Fund belongs to the Debt category of L&T Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in L&T Liquid Plan Fund via lump sum is ₹10,000 and via SIP is ₹1,000.

Min Investment Amt₹10,000
AUM₹5,013Cr
1Y Returns3.5%

L&T Short Term Bond Fund Direct Growth

Fund Performance: The L&T Short Term Bond Fund has given 6.41% annualized returns in the past three years and 6.8% in the last 5 years. The L&T Short Term Bond Fund belongs to the Debt category of L&T Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in L&T Short Term Bond Fund via lump sum is ₹10,000 and via SIP is ₹1,000.

Min Investment Amt₹10,000
AUM₹4,025Cr
1Y Returns2.1%

Aditya Birla Sun Life International Equity Fund Plan A Direct Growth

Fund Performance: The Aditya Birla Sun Life International Equity Fund has given 14.1% annualized returns in the past three years and 13.81% in the last 5 years. The Aditya Birla Sun Life International Equity Fund belongs to the Equity category of Aditya Birla Sun Life Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Aditya Birla Sun Life International Equity Fund via lump sum is ₹1,000 and via SIP is ₹1,000.

Min Investment Amt₹1,000
AUM₹129Cr
1Y Returns12.7%

L&T India Large Cap Fund Direct Growth

Fund Performance: The L&T India Large Cap Fund has given 10.19% annualized returns in the past three years and 9.96% in the last 5 years. The L&T India Large Cap Fund belongs to the Equity category of L&T Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in L&T India Large Cap Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹706Cr
1Y Returns3.0%

L&T Ultra Short Term Fund Direct Growth

Fund Performance: The L&T Ultra Short Term Fund has given 5.04% annualized returns in the past three years and 6.07% in the last 5 years. The L&T Ultra Short Term Fund belongs to the Debt category of L&T Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in L&T Ultra Short Term Fund via lump sum is ₹10,000 and via SIP is ₹1,000.

Min Investment Amt₹10,000
AUM₹1,897Cr
1Y Returns3.5%

Aditya Birla Sun Life International Equity Fund Plan B Direct Growth

Fund Performance: The Aditya Birla Sun Life International Equity Fund has given 15.65% annualized returns in the past three years and 12.41% in the last 5 years. The Aditya Birla Sun Life International Equity Fund belongs to the Equity category of Aditya Birla Sun Life Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Aditya Birla Sun Life International Equity Fund via lump sum is ₹1,000 and via SIP is ₹1,000.

Min Investment Amt₹1,000
AUM₹102Cr
1Y Returns26.1%

L&T Large and Midcap Fund Direct Growth

Fund Performance: The L&T Large and Midcap Fund has given 10.68% annualized returns in the past three years and 7.79% in the last 5 years. The L&T Large and Midcap Fund belongs to the Equity category of L&T Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in L&T Large and Midcap Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹1,494Cr
1Y Returns4.1%

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