August 20, 2022
mayank
L&T Ultra Short Term Fund Guidance
NAV Growth : Rs 36.9376
NAV IDCW Weekly : Rs 11.3457
Suitable For Which Investors ?
“Ultra-short Duration debt funds predominantly invest in bonds maturing in three to six months. They aim to earn slightly better returns over liquid funds but with a marginally higher degree of volatility.
They are suitable to park the amount you have set aside to meet any emergency needs or any surplus money that you don’t need for the next six months up to 1-1.5 years. Investors who want to avoid the complexity of wading through the very finely classified categories of debt funds can simply give these funds a miss and stick to liquid funds for this investing need. But those, who want slightly better returns and can withstand a little more volatility, can consider ultra-short duration funds.
The risk of incurring a loss in these funds over the said timeframe is low but they do not guarantee returns or safety of capital. Remember, they are geared to earn slightly better returns than what you can get from a bank account or a short duration fixed deposit, but are not suitable to build wealth in the long run.”
Fund’s Investment Strategy :
The scheme seeks to provide regular and stable return and invests only in corporate bonds and government securities predominantly with a rating of AA or above.
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.
— Mahesh A Chhabria
Education : Mr. Chhabria is a Commerce Graduate and has also pursued FCA and CFA.
Experience : He comes to L&T AMC from Fidelity where he has been for the last 3 years, was previously associated with Birla Sun Life AMCwith RSM & Co.
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: | 7.39% |
| Benchmark: | NIFTY Ultra Short Duration Debt Index B-I |
| Riskometer: | Low to Moderate |
| Type: | Open-ended |
| Assets: | Rs 1,461 Cr |
| (As on 31-Jul-2022) | |
| Expense Ratio: | 0.23% |
| (As on 31-Jul-2022) | |
| Risk Grade: | Average |
| Return Grade: | Below Average |
L&T Ultra Short Term Fund Guidance 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 Ultra ST Direct-G | 2.54 | 0.01 | 0.12 | 0.45 | 1.29 | 2 | 3.8 | 4.76 | 5.93 | 6.63 | — |
| CCIL T Bill Liquidity Weight | 1.29 | 0.04 | 0.01 | 0.27 | 0.74 | 1 | 2.03 | 2.61 | 3.26 | 3.63 | — |
| Debt: Ultra Short Duration | 2.59 | 0.01 | 0.12 | 0.45 | 1.34 | 2.04 | 4.07 | 5.06 | 5.62 | 6.3 | — |
| Rank within category | 17 | 21 | 15 | 18 | 21 | 18 | 19 | 15 | 6 | 5 | — |
| Number of funds in category | 26 | 26 | 26 | 26 | 26 | 26 | 26 | 21 | 13 | 13 | 0 |
L&T Ultra Short Term Fund Guidance Peer Comparison
| Fund name | Rating | Launch Date | 1-Year Return | 3-Year Return | 5-Year Return | Expense Ratio | Assets (Cr) |
| L&T Ultra Short Term Fund | 3 star | Jan-13 | 3.8 | 4.76 | 5.93 | 0.23 | 1,461 |
| Aditya Birla Sun Life Savings Fund | 4 star | Jan-13 | 4.11 | 5.56 | 6.46 | 0.34 | 14,762 |
| HDFC Ultra Short Term Fund | 4 star | Sep-18 | 3.9 | 5.22 | — | 0.34 | 13,459 |
| ICICI Prudential Ultra Short Term Fund | 5 star | Jan-13 | 4.35 | 5.89 | 6.75 | 0.39 | 13,058 |
| Kotak Savings Fund | 4 star | Jan-13 | 3.99 | 5.09 | 6.17 | 0.36 | 11,487 |
Portfolio Breakup
| Fund | 1Y High | 1Y Low | Category | |
| Number of Securities | 21 | 26 | 18 | 40 |
| Modified Duration (yrs) | 0.44 | 0.44 | 0.23 | 0.34 |
| Average Maturity (yrs) | 0.46 | 0.46 | 0.25 | 0.36 |
| Yield to Maturity (%) | 6.11 | 6.11 | 3.41 | 6.02 |
| Avg Credit Rating | AAA | — | — | — |
L&T Ultra Short Term Fund Guidance by Chanakya :
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