Monday, August 15, 2022

Midcap Fund Growth

Introduction

With safety, quality, and respect as its motto, Larsen and Toubro (L&T) is one of the leaders in engineering and construction in the Indian industry. Today its business interests include construction, technology, manufacturing, and financial services, among many others. Thus, you can expect the same quality and growth in its funds as well. You can even research and compare all its funds on your mutual fund app as well.

Here, we will talk about one of its popular funds, the L&T Midcap Fund Growth. Under this scheme, the portfolio of stocks is chosen by analysing the management quality, corporate governance, shareholder’s interest, and more details of different companies. Moreover, diversification in different sectors gives investors the opportunity to enhance their capital. The L&T Midcap Fund Growth is one of the recommended funds to achieve your financial goals. Let’s explain it to you in detail.

About L&T Mutual Fund

Founded in 1997, with over 25 years of experience in financial services, L&T Mutual Fund is one of India’s top asset management companies. The fund has over Rs 66,000 crores in assets under management across equity, debt, and hybrid categories.

On August 9, 2004, it launched an open-ended mid-cap equity scheme, L&T Mid-Cap Fund Growth.

Objectives of the L&T Midcap Fund-Growth

  • The primary objective of the fund is to generate capital appreciation for its investors by investing in quality mid-cap stocks. These are the stocks with market capitalisation between the highest and lowest stock, i.e., mid-caps, of the Nifty Free Float Midcap 100 Index.
  • The focus of the fund is to identify and invest in companies with potential growth aspects. In other words, the fund identifies companies that have the capability to turn into future large-cap companies.

Who are the fund managers?

  • Venugopal Manghat, with over 25 years of experience in equities, is the Head of Equities at L&T Investment Management Limited.
  • Vihang Naik, with over 11 years of experience in equity research, along with managing other funds, is the co-owner of this scheme.

What are the holdings and asset allocations of the fund?

Here is the breakup of the fund’s investment portfolio.

  • Summary of allocations
S.no Type of Asset Allocation percentage
1 Equities 96%
2 Cash and Cash equivalent 4.00%
3 Debt 0.005

 

  • Allocations in different stocks as per market capitalisation
S.no Type of stocks Allocation percentage (approx)
1 Giant and large-cap stocks 14.65%
2 Mid-cap stocks 77.69%
3 Small-cap stocks 7.67%

 

  • Allocation of equity percentage in different sectors 
S.no Type of sector Allocation percentage
1 Healthcare 14.6%
2 Financial 14.5%
3 Services 12.3%
4 Chemicals 10.7%
5 Capital Goods 9.6%
6 Technology 8%
7 Others 12.5%
8 Metals and Mining 6.8%

 

  • Top 5 holdings in the scheme
S.no Company name Holding percentage
1 Mphasis 4.5%
2 Emami 3.6%
3 Blue Dart Express 3.5%
4 Cummins India 3.3%
5 RatnaMani Metals & Tubes 3.2%

 

How to invest in this fund?

To invest in the L&T Midcap growth fund, you need to be aware of the following details:

  • The minimum investment allowed in the scheme is Rs 5,000, and any subsequent additional investment will be a minimum of Rs 1000 in the multiples of Re1.
  • If you are opting for the SIP (Systematic Investment Plan) route, then the minimum investment allowed is Rs 500.
  • The expense ratio of the scheme is 1.89%.
  • To reduce the downside risk and ensure that returns become more predictable, the ideal investment horizon for this scheme is a minimum of 3 years.

What is the load structure of the fund?

  • There is no entry load.
  • The scheme also does not have a lock-in period.
  • For exit load:
Particulars Exit load
For units in excess of 10% of the investment, if redeemed within 1 year 1%

 

Recent updates about the fund

  • The Net Asset Value of the scheme as of 27th April 2022 is Rs 200.71.
  • Fund performance
Particulars Return % Category returns average %
Since inception 18.51%  
1 yr 16.64% 27.75%
3 yrs 14.4% 20.47%
5 yrs 10.8% 13.13%

 

  • Annualised returns of the scheme for the last 5 years
Year Returns %
2021 29.37%
2020 18.81%
2019 -0.11%
2018 -11.76%
2017 51.1%

 

  • As of 31st March, 2022, the fund has assets worth Rs 6607.52 crores under its management.
  • Performance ratios of the fund
S.no Particulars Ratio
1 Standard Deviation 22.45
2 Alpha -3.5
3 Beta 0.89
4 Sharpe 0.62
5 Sortino 0.61

 

In a nutshell

This article gives you a detailed overview of the L&T MidCap Fund Growth. Due to the potential for growth in the future, mid-cap stocks are sought after by investors. Thus, by investing in this scheme for a minimum duration, investors can expect a significant return on their investment.

References

https://economictimes.indiatimes.com/lt-midcap-fund/mffactsheet/schemeid-2333.cms

https://www.etmoney.com/mutual-funds/landt-midcap-fund-growth/2151

https://www.mysiponline.com/mutual-fund/l-t-midcap-fund/mso1532

https://groww.in/mutual-funds/lt-midcap-fund-regular-growth

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