L&T India Value Fund: Fund Review
L&T India Value Fund is one of the most consistent performer in its category and investors can invest with a minimum time horizon of five years.
Value investing works not only when there is uncertainty in domestic markets but also in global markets. The strategy is all about spotting companies whose fundamentals remain strong but they are trading cheaper than their historical average valuation. This means looking at companies which are trading below their intrinsic value.
One such scheme which follows the concept of value investing to a reasonable extent is L&T India Value Fund. Scheme’s fund manager Venugopal Manghat has constructed quite a diversified portfolio with top five stocks amounting to 27% of the portfolio. Even in terms of sectors, the scheme’s exposure to top three sectors is 55.6%. This provides high scope for spotting value investments across sectors. In the past three-year and five-year, the scheme has delivered 12.4% and 18.4%, respectively, while its peers have given average returns of 11% and 14.1%, respectively.
Portfolio change (past 6 months)
|New Entrants||Complete exits||Increase in allocation|
|Bank of Baroda||Chola Financial Holdings||HDFC Bank|
|Chola Investment & Fin||Karur Vysya Bank||Emami|
|Cummins India||Tata Chemicals||The Indian Hotels Co|
Returns (in %)
|Period||CAGR Return||SIP CAGR Return||Value Fund - Average
Peer comparison returns (in %)
|Invesco India Contra Fund||-3.50||14.71||17.67|
|Kotak India EQ Contra Fund||3.17||15.15||13.15|
|Tata Equity PE Fund||8.82||15.56||16.78|
Harshvardhan Roongta, CFP, Roongta Securities
A well diversified multi-cap fund investing in stocks which are trading below their fair values. In volatile markets, value investing ensures investments are not made in momentum stocks. L&T India Value Fund is one of the most consistent performer in its category and investors can invest with a minimum time horizon of five years enabling market cycles to work in their favour.