I want to invest in L&T India Value Fund. Is it a good investment? Any other mid cap funds i can invest in?Asked
L&T India Value fund seeks to generate long term capital appreciation from a diversified portfolio of predominantly equity and equity related securities in the Indian markets with higher focus on undervalued securities.
The following are the investment details of the fund:
L&T India Value has significantly outperformed the category average and delivered thrice the benchmark return.
L&T India Value Fund is a Mid cap fund which has consistently outperformed its benchmark since its inception.
In mid cap funds, a large portion of investment is done in companies with medium market capitalization i.e. are bunch of 100-250 companies in a market after large cap companies. Stocks of mid cap companies are riskier then large cap but not as risky investment instrument as small cap. Mid cap funds have better growth potential and give investors higher returns on investment as compared to large cap funds.
Key points for L&T India Value Fund is:
· This fund has been rated as a 4-star fund by Groww.
· AUM of close to ₹6143Cr.
· Launched in 2010 so performance can be ease to judge.
· Past 3 years return is 18.48% per annum
· Has consistently outperformed its benchmark BSE S&P 100 and NIFTY 50 since its launch.
· The top portfolio holdings of the fund include Reliance Industries Ltd., ITC Ltd., ICICI Bank Ltd., Federal Bank Ltd., Future Retail Ltd. Etc.
· The holdings are balanced across various sectors with maximum weightage given to finance sector (25.7%).
L&T India Value Fund is takes a multi-cap approach, changing the mix depending on market situation. Now fund’s portfolio has large cap (43.27%), mid-cap (34.62%) and small-cap (22.12%) giving right mix of risk, stability and return on investment. So, currently it is moving towards large-caps even though peers continue to invest in mid-caps, underscoring the fund’s value bias. L&T India Value Fund can be great investment instruments for investors looking for funds with high return possibilities, without the volatility of small caps and index-related returns like those of large cap funds. But it not the best mid cap fund option available in market.
Some examples of popular Mid-Cap Funds for 2017:
It's consistently performing well in the category. With a 6-year return of 15.21%, the fund has significantly outperformed the category (average: 12.77%) and delivered thrice the benchmark return (5.6%). Its average assets under management is: Rs 2,123.46 cr.
L&T value fund mainly invests in the following:
As we can see its main focus is on financials(Banking sector in India) and also few of the top picks in L&T value fund include State Bank of India, HPCL, Power Grid, ICICI bank, which are performing really well on the stock exchange.
Should you invest in it?
The fund changes the segment mix depending on the market situation—it has brought down its mid- and smallcap exposure from the previous two years, when valuations in the segment were supportive.
Currently, it is tilted towards large-caps even as peers continue to invest in mid-caps, underscoring the fund’s value bias. The fund has an impressive track record, and has outperformed its category average consistently over the past five years. The portfolio is heavily diversified, limiting exposure to individual bets. A proven track record makes it a worthy bet in this category.
Its Competitors are:
Franklin (I) Prima Plus -Direct (G)
ICICI Pru Value Discovery Fund (G)
Reliance Equity Opportunities Fund - RP (G)