L&T India Value Fund


Investing based on “Margin of Safety” principle is known to significantly improve risk-reward ratio associated with stock investing as one invests at a price significantly lower than the assessed value of the stock. L&T India Value Fund is one such equity product offering which is managed based on the principle of “margin of safety”.

L&T India Value Fund has a proven performance track record since its inception in January 2010 and has delivered an annualized return of 25.90% over the past 5 years as compared to 13.65% by its benchmark S&P BSE 200 and 11.48% by S&P BSE Sensex. We believe L&T India Value Fund is a good fit in the portfolios of long term investors looking for a fund with strong potential to deliver alpha.

Performance:

lnt india value fund compound annnualised

lnt india value fund performance

Why invest in L&T India Value Fund ?

  • The Fund has a strong performance track record and its active investment style offers a strong alpha generation potential for long term investors.
  • The Fund’s emphasis on owning stocks with adequate margin of safety could help reduce risk during volatile market environment.
  • Currently, market is trading at above long-term average valuation levels and hence valuation driven stock picking across market segments is even more critical.
  • As earnings growth recover, value focused strategy could not only benefit from higher earnings growth but also on account of re-rating of stocks.

Investment Approach:

  • Adopts a bottom-up stock selection approach with strong focus on valuations to spot businesses whose stocks have a potential to deliver outperformance over medium to long term
  • Aims to invest in stocks with adequate margin of safety to reduce risk in a volatile market environment
  • Complete flexibility to invest across market cap segments and sectors, thus allowing it to capitalize on investment opportunities across market spectrum without any restrictions
  • For assessing the value of a stock, the Fund Manager typically assesses various parameters such as growth potential, cash flows, dividend payouts, subsidiary valuations, sum of the parts ,etc.
  • The Fund Managers looks at valuation of a stock
  • Strong risk management framework - a well diversified portfolio with focus on managing liquidity and other portfolio risks

Who is this fund suitable for ?

  • Investors seeking value approach to investing – with focus on investing in stocks having adequate margin of safety.
  • Investors looking for a fund with potential to deliver higher alpha over long term though active stock selection.
  • Investors looking for style diversification / differentiated portfolio.
  • Investors having investment horizon of at least 3-5 years.

Performance across market cycles / calendar years:

L&T India Value Fund has demonstrated a strong performance track record across market cycles. As can be seen in the table below, the fund delivered strong outperformance across bullish and bearish phases in the market except in 2010-11 when it performed largely in line with its benchmark. The table below shows calendar year wise performance of the Fund vis-à-vis its benchmark S&P BSE 200. The Fund has outperformed its benchmark S&P BSE 200 significantly in 6 out of 7 years and in 1 year (2011) the fund’s performance has been largely similar to its benchmark.

lnt india value fund performance across market cycles

Sector Wise / Market Cap Segment Wise Exposure

lnt india value fund sector wise

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