August 9, 2022
mayank
L&T Low Duration Fund Guidance
NAV Growth : Rs 24.1421
NAV IDCW Yearly : Rs 10.8364
NAV IDCW : Rs 11.0449
Suitable For Which Investors ?
“Low Duration debt funds invest in bonds maturing in six months to a year. They aim to earn slightly better returns than what you can get from a bank account or a short duration fixed deposit. The risk of incurring a loss in these funds is negligible but they do not guarantee returns or safety of capital. Retail investors can avoid these funds altogether. Here’s why. Debt funds are very finely classified depending upon the maturity of the bonds they invest in. For instance, there’s a different category of funds that invests in bonds of up to three months maturity, from the one that invests in bonds maturing in three to six months, and so on. We believe that such a nuanced classification adds little value to retail investors. They can avoid this complexity and simply invest the money they don’t need for up to a year in a Liquid fund.”
Fund’s Investment Strategy :
The scheme aims to generate reasonable returns primarily through investments in fixed income securities and money market securities.
Fund Manager :
— Jalpan Shah
Education : Mr. Shah is a B.E. (Mechanical) and holds a PGDM.
Experience : Prior to joining L&T Mutual Fund, he was associated with FIL Fund Management Private Limited (Dec 2007-Nov 2012), Lotus India Asset Management Company Private Limited (Sep 2007-Nov 2007) as a Research Analyst, UTI Asset Management Company Private Limited (July 2006-Aug 2007) as a Research Analyst and UTI Asset Management Company Private Limited(May 2004-June 2006) as a Sales & Marketing Manager.
— Shriram Ramanathan
Education : Shriram is a B.E. (Electrical), PGDBM from XLRI Jamshedpur and CFA.
Experience : Prior to joining L&T Mutual Fund he has worked with FIL Fund Management Pvt. Ltd., ING Investment Management, Zurich Asset Management Co., ICICI Ltd., and L&T Ltd.
Investment Details
| Min. Investment (Rs) | 10,000 |
| Min. Addl Investment (Rs) | 1,000 |
| Min. SIP Investment (Rs) | 1,000 |
| Min. No of Cheques | 6 |
| Min. Withdrawal (Rs) | 500 |
| Min. Balance (Rs) | 500 |
| Lock-in Period | Not Applicable |
| Exit Load | 0 |
Basic Details
| Fund House: | L&T Mutual Fund |
| Launch Date: | 01-Jan-13 |
| Return Since Launch: | 7.57% |
| Benchmark: | NIFTY Low Duration Debt Index B-I |
| Riskometer: | Low to Moderate |
| Type: | Open-ended |
| Assets: | Rs 776 Cr |
| (As on 31-Jul-2022) | |
| Expense Ratio: | 0.26% |
| (As on 30-Jun-2022) | |
| Risk Grade: | Average |
| Return Grade: | Average |
Trailing Returns (%)
| YTD | 1-Day | 1-W | 1-M | 3-M | 6-M | 1-Y | 3-Y | 5-Y | 7-Y | 10-Y | |
| L&T Low Duration Direct-G | 2.27 | 0.04 | 0.08 | 0.41 | 1.25 | 1.93 | 3.82 | 5.46 | 5.78 | 6.99 | — |
| CCIL T Bill Liquidity Weight | 1.19 | -0.02 | 0.07 | 0.2 | 0.64 | 1.04 | 1.99 | 2.59 | 3.27 | 3.63 | — |
| Debt: Low Duration | 2.2 | 0.04 | 0.07 | 0.42 | 1.25 | 1.84 | 4.25 | 5.75 | 5.82 | 6.57 | — |
| Rank within category | 8 | 4 | 9 | 13 | 13 | 8 | 7 | 15 | 15 | 8 | — |
| Number of funds in category | 22 | 22 | 22 | 22 | 22 | 22 | 22 | 22 | 22 | 21 | 0 |
Peer Comparison
| Fund name | Rating | Launch Date | 1-Year Return | 3-Year Return | 5-Year Return | Expense Ratio | Assets (Cr) |
| L&T Low Duration Fund | 3 star | Jan-13 | 3.82 | 5.46 | 5.78 | 0.26 | 776 |
| Aditya Birla Sun Life Low Duration Fund | 5 star | Jan-13 | 4.18 | 6.22 | 6.97 | 0.38 | 11,978 |
| Nippon India Low Duration Fund | 4 star | Jan-13 | 4.14 | 6.25 | 6.51 | 0.38 | 7,657 |
| Kotak Low Duration Fund – Standard Plan | 4 star | Jan-13 | 3.68 | 6.19 | 6.95 | 0.42 | 6,624 |
| Axis Treasury Advantage Fund | 4 star | Jan-13 | 3.84 | 5.68 | 6.68 | 0.24 | 5,352 |
Portfolio Breakup
| Fund | 1Y High | 1Y Low | Category | |
| Number of Securities | 29 | 45 | 29 | 53 |
| Modified Duration (yrs) | 0.68 | 0.75 | 0.51 | 0.58 |
| Average Maturity (yrs) | 0.73 | 0.81 | 0.53 | 0.88 |
| Yield to Maturity (%) | 6.43 | 6.43 | 4.07 | 6.28 |
| Avg Credit Rating | AAA | — | — | — |
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