L&T India Large Cap Fund

L&T India Large Cap Fund is being managed by  Venugopal Manghat and Rajesh Pherwani. The scheme seeks to generate long term capital appreciation through investments in large cap equity and equity related securities. The fund’s performance has stayed close to the category average in most periods. If you are a new investor you can skip this one for a better performer.

L&T Hedged Equity Fund, L&T Opportunities Fund and L&T Growth Fund has been merged with Fidelity India Growth Fund, Further the scheme changed its fundamental attribute and was renamed as L&T India Large Cap Fund w.e.f. November 16, 2012.

Where does L&T India Large Cap Fund invest your money?

L&T India Large Cap Fund is a large cap fund which means most of your money is invested in giant and large size companies. It has about 87.18% allocation in large cap stocks, 9.03% allocation in mid cap stocks, and close to 0.76% allocation in small cap stocks. Large cap companies tend to be stable compared to mid cap and small cap companies. Yet exposure to mid cap companies is not totally avoided due to prospects of kicker returns which unfortunately does not happen often.

Suitable for what?
  • Child's education
  • Child's marriage
  • Planning for retirement
  • Home Purchase
Not suitable for what?
  • Creating wealth
  • Short term needs
  • Lifestyle needs
How has L&T India Large Cap Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in Sep 2007 the value of your investments would be around Rs 1.27 lakhs. The performance has not been better than that of similar mutual funds in this category. The fund has been giving at around 4.43% every year for those who stayed invested since inception.

Assume you had invested Rs 10,000 every month in L&T India Large Cap Fund through SIP since inception today you would sadly have only around Rs 7.95 lakhs.

How will L&T India Large Cap Fund perform in the future?

Needless to say no one can predict the future of markets. We have firm belief in the future prospects of the Indian economy. If the Indian economy grows at 9% then the leading companies tend to de well. When the companies do well their stock prices follows their performance. So if you expect the economy to grow at 8% then you can expect top performing mutual funds to give you returns in excess of 14%. 

We advise you to avoid too much of star gazing and future prediction.  Be reminded that equities are one of the asset classes that have the potential to beat inflation. Your aim for core portfolio should be to beat inflation.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Recommended
When to exit?

Withdraw when your goals are close to achievement. Do not remove the money when the markets go up or down. Do not panic. Stick to your goals.

 

How frequently you need to monitor the performance?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance twice a year. Too much attention is not good.

What are the charges applicable?

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of L&T India Large Cap Fund is 2.72%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio. 

What are the tax implications?

The returns in an equity mutual fund are absolutely tax free, provided you do not withdraw within 1 year. 

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