L&T Mutual Fund Equity & Debt Views
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    L&T Mutual Fund Equity & Debt Views L&T Mutual Fund Equity & Debt Views Presentation Transcript

    • L&T MUTUAL FUND EQUITY & DEBT VIEWS June 20101
    • Index 1. Equity market overview 2. Products – in focus 3. Debt market overview 4. Products – in focus 5. About us2
    • Global Equities performance in FY2010 Country % Returns Russia 126.5 India 81.2 Brazil 72.0 India continues to be Mexico 70.3 one of the best performing equity Hong Kong 57.4 markets across the globe Germany 54.3 Taiwan 52.8 UK 45.5 US 43.2 France 42.5 Korea 42.0 Japan 34.7 China 31.8Source: Bloomberg 3
    • Sectoral performance of Indian Equities in FY2010 % BSE Sensex delivered 81.2% returns during FY2010 250.00 210 200.00 161 150 150.00 137 132 119 110 100.00 87 72 45 41 50.00 - Consumer Capital Goods Bank IT PSU Auto Metals Oil& Gas Healthcare Real Estate FMCG durablesSource: Bloomberg 4
    • Sensex – FY2010 gainsCompany % Chg. Pts Index Company % Chg. Pts IndexICICI Bank Ltd 182% 944 Oil & Natural Gas Corp Ltd 40% 189Infosys Technologies Ltd 101% 877 Wipro Ltd 193% 186Larsen & Toubro Ltd 150% 716 Maruti Suzuki India Ltd 87% 132Reliance Industries Ltd 42% 694 Jaiprakash Associates Ltd 186% 132HDFC Bank Ltd 104% 484 Tata Power Co Ltd 80% 132HDFC 87% 445 Grasim Industries Ltd 83% 121State Bank of India Ltd 103% 419 Reliance Infrastructure Ltd 99% 104Tata Consultancy Services Ltd 199% 367 Sun Pharma 65% 79Tata Steel Ltd 223% 329 Hero Honda Motors Ltd 37% 71ITC Ltd 47% 303 ACC Ltd 68% 54Bharat Heavy Electricals Ltd 62% 216 DLF Ltd 87% 47Hindalco Industries Ltd 262% 210 NTPC Ltd 13% 41Sterlite Industries India Ltd 142% 209 Bharti Airtel Ltd 2% 11Tata Motors Ltd 339% 207 Reliance Communications Ltd 2% 7Mahindra & Mahindra Ltd 195% 206 Hindustan Unilever Ltd 0% 1Source: Bloomberg 5
    • •6 -1200 -1000 -800 -600 -400 -200 200 400 600 800 1000 1200 1400 1600 1800 0 03/04/2009 10/04/2009 17/04/2009 24/04/2009 01/05/2009 Source: Bloomberg 08/05/2009 15/05/2009 22/05/2009 29/05/2009 05/06/2009 12/06/2009 19/06/2009 26/06/2009 03/07/2009 10/07/2009 17/07/2009 24/07/2009 31/07/2009 07/08/2009 14/08/2009 21/08/2009 28/08/2009 04/09/2009 11/09/2009 18/09/2009 25/09/2009 ` 02/10/2009 09/10/2009 16/10/2009 23/10/2009 FII-India (Weekly Flows) 30/10/2009 06/11/2009 13/11/2009 20/11/2009 27/11/2009 04/12/2009 11/12/2009 18/12/2009 25/12/2009 01/01/2010 08/01/2010 15/01/2010 22/01/2010 29/01/2010 05/02/2010 FII inflows has been robust during FY2010 12/02/2010 19/02/2010 26/02/2010 FII weekly inflows (Net inflows in year FY2010: Rs 1,11,000 crs) ($ 23.7bn) 05/03/2010 12/03/2010 19/03/2010 26/03/2010
    • Indian Rupee Major Beneficiary EURO YEN Rupee 1201. Relative strength of economies is visible in currency movements. 1152. Rupee has appreciated against all the major currencies because 110 of V-shaped recovery, prospects of higher growth and expected 105 improvement in fiscal prudence 1003. $24 bn of FII flows in equities is also one of the key factors for 95 appreciation. Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 7
    • Global developments – Events in Western world were inlimelight • Sovereign risk in Eurozone came to the fore during the quarter Jan – march 2010. As far as Greece is concerned , It has been mitigated for the time being on the back of support from larger economies of Eurozone and IMF as Greece has guaranteed to reduce fiscal deficit. • Though Greece and Portugal are insignificant economies as far as Eurozone is concerned, experts are worried about the broader economic impact. • In US, Volcker rule took bankers by surprise as it proposes to restrict banks from making certain kinds of speculative investments if they are not on behalf of their customers. After the initial hiccup, market seems to have ignored the same. • While Federal reserve of US has kept the Fed fund rate intact, it has increased the discount rate by 50 bps in Feb 2010. In recent meeting, Fed has kept all policy rates unchanged. It broadly continues with the easy monetary policy. 8
    • Global development - Is China leading the new bubble?• China has avoided the downturn in economy by aggressively expanding credit since the end of 2008, while China’s exports collapsed as a result of the Great Contraction in the advanced industrial countries• In addition to this fiscal stimulus, the government has also ordered a very large lending programme by the state banks to a wide range of borrowers as part of the response to the global recession.• Of late the Chinese central bank has resorted to monetary tightening by way of higher reserve requirements and selective quantitative credit controls. However, they have not been sufficient enough to moderate the robust credit growth, leading to fear of higher NPAs going forward.• Unprecedented credit growth has led to a major asset boom. All measures of the money supply and of credit are growing much faster than nominal GDP thus impacting both consumer / output price inflation and asset price inflation.• Experts have been suggesting (both within and outside china) that higher interest rates and Yuan appreciation are necessary to prevent further overheating in the real economy.9
    • Commodity and Dollar disconnect ?1. Movement in commodities in recent CRB Commodity Index Dollar Index (DXY) times has defied earlier correlation. 500 952. Weakening Dollar index in past led to strengthening commodity prices 450 90 and vice-versa. 853. However, in last few months both 400 the dollar index and commodities 80 have been unidirectional. 350 754. The anomaly to some extent could be explained by the composition in 300 70 dollar index, which has higher Jan-00 Aug-07 Dec-07 Apr-08 Aug-08 Dec-08 Apr-09 Sep-09 Jan-10 weightage for EURO that has been depreciating sharply against dollar in recent times. 10
    • Domestic - Key events to watch out for.. 1. Divestments of PSU companies has picked up in FY2010, with the government raising more than $5 bn against an initial target of $250 mn. The momentum is expected to continue with FY2011 target of $8.5 bn. This would enable the government to maintain fiscal prudence and increase attractiveness of PSUs to foreign investors. 2. The long pending 3G spectrum auction is finally about to conclude very soon. With the number of bidders exceeding the slots available, the government is expected to rake in $ 12 bn. 3. RBI has increased the repo and reverse repo rate by 50 bps during last couple of months indicating the start of monetary tightening to tame inflationary pressure visible in the economy. 4. Corporate Q4FY10 Earnings has been largely in line with expectations. With GDP growth remain strong, financial performance of corporates would remain. 5. With rabi crop being good and IMD forecast of monsoon being better, we expect food inflation to taper off in coming month.11
    • Capital flows to be robust• Low interest rates in the US, will continue to lead the money flows in emerging markets which have delivered relatively higher growth rates. Although valuations are at premium but higher earnings growth justifies the same.• India has been relatively less battered in the global crisis and most indicators suggest robustness of the recovery with IIP nos in double digit. Budget 2010 has rolled back some stimulus measures in the form of increase in excise duty, but the economy is expected to absorb the hike without impacting the growth rates. Moreover return to fiscal prudence has seen a rating upgrade of India from S&P. We believe India will remain one of the favored emerging markets.• The Economy is expected to grow more than 8% during fiscal 2011 as per estimates of govt agencies and India may overtake China in growth over next couple of years. 12
    • Outlook• 16. FY11 earnings. Sensex at 17559 levels trades at 16.5x based on consensus FY11 earnings.• GDP growth estimates for FY2011 of India at ~8.0% plus are amongst one of the best across the globe. FY2011 globe.• Market returns are a function of Valuation, Events and Liquidity. Liquidity. • On valuation parameters markets may appear to be in fair value zone but better earnings growth prospects justifies the premium valuation • International markets volatility will continue to impact in the short term.• We believe any correction in the market • should be viewed as opportunity to step up allocations to equity • with investment horizon of 12 to 18 months. • Midcap segment of the market is attractively valued • Valuations of midcap stocks are at significant discount to large cap inspite of higher earning growth potential. • Moreover, it is the early stage of recovery and hence, earnings growth for midcap stocks may far exceed the expectations in coming periods13
    • Midcaps Attractively Valued Relative Valuations of Large caps and Midcaps Nifty FY2011E FY2012E P/E (x) 16.7 13.8 P/BV (x) 2.7 2.4 EV/EBITDA (x) 7.6 6.4 Dividend yield (%) 1.2 1.5 CNX Midcap FY2011E FY2012E P/E (x) 12.3 10.3 P/BV (x) 2.0 1.8 EV/EBITDA (x) 6.0 5.3 Dividend yield (%) 1.4 1.5 BSE Smallcap FY2011E FY2012E P/E (x) 8.2 7.1 P/BV (x) 1.2 1.0 EV/EBITDA (x) 2.4 2.1 Dividend yield (%) NA NASource: Bloomberg (As on 31st march 10) 14
    • Index 1. Equity market overview 2. Products – in focus 3. Debt market overview 4. Products – in focus 5. About us15
    • L&T Opportunities Fund Platinum Rated Fund A rated fund by ETIG - Jan’10 to Mar’10 # by Value Research (31st May 2010)An Open Ended Growth Fund •The fund will be investing across sectors Rs. 10000 invested (Cumulative Option) on 11 and within sectors , where ever Dec, 03* has grown to Rs. 36132 on 31th May 2010 opportunities exists. (6 Years and 5 Months) •The fund will choose stocks based on their Past Performance may or may not be sustained in potential and is neutral to capitalization of future and is not a guarantee of future results. stock. Performance (CAGR) as on 31 May’ 2010 (Returns in %) •In-depth research is done for choosing the Period Cumulative Option S&P CNX Nifty sectors and within sectors selection of stocks Last 6 months^ 5.26 1.07% for investment thereby ensuring high Last 1 Year 23.47% 14.33% discipline in fund management and quality of portfolio. Last 3 Years 11.26% 5.79% Last 5 Years 21.23% 19.48% •The fund should be considered for investing from the medium to long term horizon of Since Inception 21.95 18.49% over 2-3 years with an objective of capital appreciation. *On 11 Dec, 2003 the scheme has been repositioned as L&T Opportunities Fund. Past performance may or may not be sustained in future. ^ Absolute return # Please refer to ranking methodology mentioned at the end of the presentation. 16
    • L&T Opportunities Fund Platinum Rated Fund A rated fundAn Open Ended Growth Fund by ETIG – Jan’10 to Mar’ 10 # by Value Research (31st May 2010) Top 10 holdings 31 May’ 2010 Scrip name % to NAV Reliance Industries Ltd 5.00 Bharat Heavy Electricals Ltd 4.65 Biocon Ltd 3.12 ICICI Bank Ltd 3.1 State bank of India 2.83 Tata Consultancy Services Ltd 2.73 Maruti Udyog Ltd 2.5 Oil & Natural Gas Corporation Ltd 2.36 Wipro Ltd 1.91 Gail India Ltd 1.84 17
    • L & T Opportunities Fund Stocks Bought during 31-05-2010 31-05- Great Eastern Shipping Co. Ltd. Fert.& Gujarat State Fert.& Chemicals Ltd. Infosys Technologies Ltd. IPCA Laboratories Ltd Persistent Systems Ltd. Sun Pharmaceutical Industries Ltd. Wipro Ltd Great Eastern Shipping Co. Ltd. Gujarat State Fert.& Chemicals Ltd. Infosys Technologies Ltd. IPCA Laboratories Ltd18
    • L & T Opportunities Fund 31-05- Stocks Exited during 31-05-2010 Bajaj Holdings & Investment Ltd Corporation Bank Indian Oil Corporation Ltd Jyothy Laboratories Ltd Lakshmi Machine Works Ltd. Patni Computer Systems Ltd. Tata Motors Ltd. United Phosphorus Ltd. United Spirits Ltd. Voltas Ltd Bajaj Holdings & Investment Ltd19
    • L & T Opportunities Fund Major Sectoral Changes over the Month Sector 31/05/2010 30/04/2010 SOFTWARE 12.84 7.33 BANKS 12.10 18.67 PHARMACEUTICALS 9.79 6.95 INDUSTRIAL CAPITAL GOODS 9.56 7.79 POWER 7.67 8.19 PETROLEUM PRODUCTS 6.88 8.03 GAS 4.29 4.2120
    • Index 1. Equity market overview 2. Products – in focus 3. Debt market overview 4. Products – in focus 5. About us21
    • Economy May Grow at 8% in FY10 • 3rd Q FY10 GDP growth slows to 6% as compared to 7.9% in 2nd Q FY10 • Indian economy expected to grow at 7.00% in FY10 • Fiscal deficit for FY10 (RE) pegged at 6.9% and for FY11 (BE) at 5.5% • IIP (Index of Industrial Production) registering strong growth and coming in at double digits with Feb IIP yoy growth at 15.1%, Jan IIP registering at 16.7% and Dec IIP at 17.6% • Cumulatively during first 9 Months of FY10 , India’s BoP saw a surplus of $11.3 bn vs a deficit of S20.4 bn in the same period last year on back of robust FII flows during the current fiscal • Rupee has started appreciating on the back of growth in economy, FII inflows and growth in exports. It breached a significant barrier of 45/$USD, touched a low of 44.30 in April, however the Eurozone crisis has led to a correction and currently it is around 45/$USD22
    • Liquidity scenario • Bank deposit growth has fallen to 15% yoy in April 2010 as compared to 17% yoy (22% in FY 09) in March 2010 • Credit growth remains stable at around from 17% yoy in April 2010 • Banking system liquidity (reflected in RBI’s LAF reverse repo auction) averaged Rs 1 lakh cr in FY10, Post CRR hike of 100 bps from Jan 2010 onwards the average banking system liquidity has been in the range of Rs 45000 cr to 70000 cr • Overnight rates (CBLO/CALL/repo) more or less stable and at low levels: in the range of 3.25% to 3.90% • Short term Money market instruments saw a secular fall in yields in first half of 2009, some rise during Jan to March 2010 post rate hikes and has again seen a fall in April 2010Source: Internal Research 23
    • Summing up…..• Since April 09 ten yr benchmark G sec yield has risen by 142 bps from 6.23% to 7.65%• 5 yr benchmark AAA corporate bond yield is at 8.15% compared to 8.55% in Mar 09• Inflation (WPI) remained benign during first half of FY10 falling into negative territory and has started rising again. Currently latest figure stands at 9.90%• Crude oil prices have gone up from US$ 49 in Mar 09 to US$ 77 in May 2010.• US economy shows signs of recovery, however Eurozone plunged into crisis due to fiscal problems in Greece and lack of strong bailout package from EU• Global bond yields (U.S., Japan, Germany) have rallied in recent past due to crisis in Eurozone• Commodity prices including oil prices have fallen which is expected to have a positive effect on inflation• Other benchmarks: (as on 7th May 2010) – 1 yr CD rate 6.15% – 3 month CD rate 4.20% – RBI’s LAF repo/reverse repo rate 5.25% / 3.75% – CRR 6.00% – WPI Inflation 9.90% – Liquidity in banking system Around 50000 crs. Source: Bloomberg, Internal Research 24
    • Market View• Growth is expected to pick up; IIP nos coming in double digits.• RBI has started tightening monetary policy to rein in inflation expectations, cumulatively 100 bps of CRR hike and 50 bps of repo and reverse repo done so far• Inflation is peaking; may fall in coming months• Further rate hikes will be gradual, expect the next hike in July policy• Due to strong domestic fundamentals on one hand and Eurozone crisis on other hand will see greater volatility in rates going forward• Ten yr benchmark gilt yields could trade in range of 7.50% to 8.50% in next three to six months• Corporate bond spreads to widen from current levels• Short term rates to remain stable with upward bias25
    • Key expectationsPositives• RBI to support government borrowing program• Banking system liquidity remains adequate• Capital inflows and rupee appreciation to keep short term rates on the lower sideNegatives• Unexpected rise in inflation• Banking system liquidity sharply moving down, due to capital outflows if Eurozone crisis not contained in a timely manner• Premature rate hikes One could start moving the debt portfolio to MIP to take advantage of expected rise in yields and potential appreciation from equity exposure26
    • Index 1. Equity market overview 2. Products – in focus 3. Debt market overview 4. Products – in focus 5. About us27
    • L&T Monthly Income Plan Gold rated Fund A rated fundAn open ended income scheme by ETIG Jan’ 10 to Mar’ 10 # by Value Research (31st May 2010)with no assured returns • The fund will predominantly invest in L&T Monthly Income Plan (Cumulative) debt and marginally in equity stocks with an endeavour to provide regular monthly income to investors. Since inception return (31 Jul’ 03) 9.74% p.a. • A hybrid fund which brings together 2 Rs. 10,000 invested on 31 Jul, 03 has grown to Rs. assets classes; Fixed income securities 18,880 on 31st May 2010 (6 years, 10 months) which brings stability to the investment and equity which brings scope for capital Past performance may or may not be sustained in future appreciation. Fund performance (Cumulative Option) as on 31 May’ 2010: Last 1 year 8.31%, Last 3 years 11.97%, Last 5 years 10.08%, Since Inception • Ideal for those investors who are looking 9.74%. Benchmark (Crisil MIP Blended Index): Last 1 year 6.64 %, Last for stability of returns and also want to 3 years 7.73%, Last 5 years 8.34%, Since Inception 8.18% have some upside through small equity Past Performance may or may be sustained in future and is not a exposure. guarantee of future results. # Please refer to ranking methodology mentioned at the end of the presentation. 28
    • L&T Monthly Income Plan Gold rated Fund A rated fundAn open ended income scheme by ETIG Jan’ 10 to Mar’ 10 # by Value Research (as on 31st May 2010)with no assured returns Dividends paid since Mar08 Date Cum -Nav *Gross Dividend per Uninterrupted Dividend Date Cum -Nav *Gross Dividend per unit (Rs) unit (Rs) 25-Jun-09 11.67 0.1000 track record since Mar’ 25-Mar-08 12.51 0.1000 08 to date 25-Apr-08 26-May-08 12.77 11.73 0.1000 0.1000 27-Jul-09 11.77 0.1000 25-Aug-09 11.78 0.1000 25-Jun-08 12.23 0.1000 25-Sep-09 11.85 0.1000 25-Jul-08 12.14 0.1000 25-Aug-08 12.1 0.1000 26-Oct-09 11.77 0.1000Face Value: Rs. 10/- per unit. 25-Sep-08 11.92 0.1000 26-Nov-09 11.78 0.0900Past performance may or may not be sustained 25-Oct-08 11.4 0.1000 29-Dec-09 11.75 0.0750in future. 25-Nov-08 11.36 0.1000Pursuant to the payment of dividend, the 25-Jan-10 11.66 0.0750NAV of the scheme will fall to the extent of 25-Dec-08 11.53 0.1000payout and statutory levy, (if applicable). 25-Jan-09 11.51 0.1000 25-Feb-10 11.53 0.0750 25-Feb-09 11.41 0.1000 25-Mar-10 11.59 0.0750*Subject to statutory levy as applicable 25-Mar-09 11.34 0.1000 26-Apr-10 11.65 0.0600Monthly Income is not assured and is subject to 25-Apr-09 11.43 0.1000the availability of distributable surplus.Past performance is no guarantee of future 25th May -10 11.47 0.0527results 25-May-09 11.56 0.1000 29
    • L&T Monthly Income Plan Gold rated Fund A rated fundAn open ended income scheme by ETIG Jan’ 10 to Mar’ 10 # by Value Research (as on 31st May 2010)with no assured returns Top 10 holdings as on 31st May 2010 ICICI Bank Ltd 24.31 0.67 Bharat Heavy Electricals Ltd. 18.83 0.52 Tata Steel Ltd 16.48 0.46 Maruti Udyog Ltd 14.48 0.41 ITC Ltd 14.16 0.39 State Bank of India 13.61 0.38 Infosys Technologies Ltd 13.29 0.37 Tata Elxsi Ltd. 13.28 0.37 Cipla Ltd 12.77 0.35 IPCA Laboratories Ltd 12.60 0.35 30
    • L&T Monthly Income Plan Gold rated Fund A rated fundAn open ended income scheme by ETIG Jan’ 10 to Mar’ 10 # by Value Research (as on 31st May 2010)with no assured returns Asset Allocation as on 31st May’ 2010 features: Key features: Cash & Cash equity Corporate Debt Equivalents 8.47 25.54 32.71 33% 8% 26% Investment objective: The primary investment objective: objective of is to generate monthly income Govt Dated Equity Derivatives Securities Money Market Instruments through investments in a range of Debt, Equity 5.67 6% 4.26 4% 23.35 and Money Market Instruments. 23% Applicable load: Entry load: NIL, Exit load: load: 1% if redeemed ≤ 1 Year ; Nil if Redeemed > 1 Year. Rating profile as on 31st May’ 2010 Options for investment: investment: Monthly Dividend, Quarterly Dividend and Cumulative Sovereign, 5.6 7 Options. P1+ or equivalent, 23.3 Minimum Investment: Rs. 5000/- for Investment: AAA or 5 equivalent, 25. Cumulative and Rs. 10,000 for Monthly and 54 Quarterly Dividend. Benchmark: Benchmark: CRISIL MIP Blended Index 31
    • Index 1. Equity market overview 2.Products – in focus 3.Debt market overview 4.Products – in focus 5.About us32 32
    • Legacy of L&T Mutual Fund Legacy of L&T Mutual Fund • L&T Finance took over DBS Chola Mutual Fund in February 2010. • The entire management team was retained • The team includes an 11 member investment team and total staff strength of over 170 members. • Chola Mutual fund was launched in 1996 and has been in existence for 14 years before the takeover. • The AMC is head quartered in Mumbai since 2000 • The Fund got rechristened as L&T Mutual Fund on Feb 16, 2010 • The Fund House has a suite of 22 products with some funds with a track record built over last 14 years. (L&T Triple Ace Fund)33
    • Legacy of L&T Mutual Fund Legacy of L&T Mutual Fund• Over 96 Man Years of Investment Management experience• Employee asset base of over 64% Post Graduates of which many are MBAs, CAs, CS & CFAs• Suite of Mutual Fund schemes for different investor requirements• Houses the first ever launched AAA rated debt fund –LTMF Triple Ace Fund and Multi Cap Equity Fund in the industry.• Awards over the years for performance of schemes• Led by Sanjay Sinha, CEO – one of the respected Fund Managers in the countryPast Performance may or may not be sustained in the future & is no guarantee of the future results34
    • Investment Philosophy Investment Philosophy“Provide long term gains to investors through strong research based stock selection and active portfolio management”35
    • Investment Process Investment Process Quantitative Analysis Create watch list of Stocks based on Liquidity, Ownership pattern and Market capitalization Identify fundamentally sound companies based on Management quality, Competitive position Fundamental Analysis and Valuation parameters viz. RoE, RoCE, PE, PEG, EV/EBITDA. Select Stocks Based on the fundamental analysis and identification of valuation gaps and reasons thereof. Sector weight allocation and stock weight allocation across sectors.Portfolio Construction Inter sector and Intra sector rotation based on opportunity and relative valuation. Calibrate Attribution Analysis Evaluating portfolio performance to identify performance gaps and initiating actions accordingly.36
    • Research Flow Research Flow Evaluate all secondary research inputs Company management/plant visits Obtain relevant primary inputs from other business associates (bankers, vendors, customers, intermediaries etc.) Ascertain sustainability of business model Apply fundamental research tools for financial projections/valuation model Rating recommendation/ Ranking37
    • Decision Making Process Decision Making Process Analysts propose action on a stock/sector Investment team evaluates the proposal based on risk return score for individual stock/sector for its inclusion/exclusion. Fund manager decides on stock weightage (overweight/underweight/neutral) in the portfolio. Investment committee meets on fortnightly basis to review the sector/stock performance vis a vis the markets and decides on future course of action38
    • Ratings of funds by Independent rating agencies Ratings by ET Quarterly L&T Opportunities Fund Platinum Rated Fund Mutual Fund Tracker ( Jan’ L&T Midcap Fund Platinum Rated Fund 10 to Mar’ 10) L&T MIP Gold Rated Fund L&T Monthly Income Plan Ratings by L&T Liquid Super Inst. Value Research (May 31st ) L&T Freedom Income Inst. Past performance may or may not be sustained in future. Past performance is no guarantee of future results. Please refer to ranking methodology at the end of the presentation.39
    • Statutory• Nature and Investment objective: L&T Opportunities Fund: An Open-ended Growth fund. The Scheme will invest mainly to generate long-term objective: Fund: capital appreciation from a diversified portfolio of equity & equity related securities.. L&T Midcap Fund An open-ended equity fund. Investment Fund: objective is to generate capital appreciation by investing primarily in midcap stocks. L&T Monthly income Plan An open-ended income scheme Plan: with no assured returns The primary investment objective is to generate Monthly income through investments in a range of Debt, Equity and Money Market Instruments. L&T Freedom Income Fund An Open-ended Income scheme. Investment objective is to generate regular and stable Fund: income. L&T Liquid Fund: An Open-ended Liquidity income fund. The investment objective will be to generate reasonable returns while Fund maintaining safety and providing the investor superior liquidity.• Disclaimer: Disclaimer: This document have been prepared by L&T Investment Management Limited (L&T IML) for information purposes only and should not be construed as an offer or solicitation of an offer for purchase of any securities or any of the funds of L&T Investment Management Ltd. The document is for general information only and does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this information. Investments in mutual funds and secondary markets inherently involve risks and recipient should consult their legal, tax and financial advisors before investing. Recipient of this document should understand that statements made herein regarding future prospects may not be realized. He/ She should also understand that any reference to the securities/ sectors in the document is only for illustration purpose. The views expressed in the document are personal views of the author and do not necessarily reflect the views of L&T Investment Management Ltd or any of its associates. Neither this document nor the units of L&T Mutual Fund have been registered in any jurisdiction. The distribution of this document in certain jurisdictions may be restricted or totally prohibited and accordingly, persons who come into possession of this document are required to inform themselves about, and to observe, any such restrictions.• Risk Factors: • Investment in Mutual Fund Units involves investment risks such as trading volumes, settlement risk, liquidity risk, default risk Factors: including the possible loss of principal. ♦As the price / value / interest rates of the securities in which the scheme invests fluctuates, the value of your investment in the scheme may go up or down ♦Past performance of the Sponsor/AMC/Mutual Fund does not guarantee future performance of the schemes.♦ The names of the Schemes/Plans do not in any manner indicate either the quality of the schemes or its future prospects and returns; and are only the name of the schemes. ♦The sponsor is not responsible or liable for any loss resulting from the operation of the schemes beyond the initial contribution of Rs.1 lakh made by it towards setting up the Fund. ♦The present Schemes/ Plans do not guarantee or assure returns. ♦Mutual fund Investments are subject to market risks. Please read the Scheme Information Document and Mutual risks. investing. Statement of Additional Information carefully before investing• Statutory Details: L&T Mutual Fund has been established as a trust under the Indian Trust Act, 1882 by L&T Finance Limited (liability restricted to Details: the seed corpus of Rs. 1 lakh) with L&T Trustees Ltd. as the Trustee and L&T Investment Management Ltd as the Investment Manager.• Funds which are benchmarked to S&P CNX Nifty are not sponsored, endorsed, sold or promoted by India Index Services and Products Ltd. (IISL). IISL is not responsible for any errors or omissions or the results obtained from the use of such index and in no event shall IISL have any liability to any party for any damages of whatsoever nature (including lost profits) resulted to such party due to purchase or sale or otherwise of such products benchmarked to such index. 40
    • DisclaimersValue Research Fund Ratings are a composite measure of historical risk-adjusted returns. In the case of equityand hybrid funds this rating is based on the weighted average monthly returns for the last 3 and 5-year periods.These ratings do not take into consideration any entry or exit load. 5-stars indicate that a fund is in the top 10%of its category in terms of historical risk-adjusted returns. 4 star indicates that a fund is in the next 22.5%.TheseFund Ratings are as on May, 2010. The Value Research Ratings are published in Monthly Mutual FundPerformance Report and Mutual Fund Insight. The Ratings are subject to change every month. The Rating isbased on primary data provided by respective funds, Value Research does not guarantee the accuracy.Value Research Fund Returns & Ranking: The return computations assume reinvestment of dividend and areadjusted for any bonus or rights. All trailing returns for over one-year period are annualised, while returns forless than one-year are percentage change. Funds are ranked on the basis of their return position in therespective Value Research Fund Category. Number of funds indicates the total number of funds ranked inrespective fund category and the time period.ETIG Quarterly Mutual Fund Tracker: The ETIG list Mutual Fund (MF) schemes on the basis of their risk-adjustedperformance. The period under consideration is 3 years. The return score is arrived by allotting 60% weight tothe past 3 year’s absolute return and 40% weight to the past 1 year return. These weighted returns arecompared vis-a-vis the average return for the category under consideration to arrive at the return score for eachscheme. The top 10% funds in each category are then classified as Platinum‘ funds; the next 20% are gradedGold while the next 40% are classified as Silver. The quarter under consideration is Jan 2010 to March 2010 41
    • www.lntmf.com Call Toll free : 1800-209-6565 SMS LTMF to 567678 1800-209-Branch NosAhmedabad: 9898029991, Allahabad: 9918500388, Amritsar:Ahmedabad: 9898029991, Allahabad: 9918500388, Amritsar: 9855721024 Bengaluru: 080- Bengaluru: 080-42497000/32952142, Baroda: 8128997153, Bhopal: 0755-2552452-53/9893654246,42497000/32952142, Baroda: 8128997153, Bhopal: 0755-2552452-53/9893654246,Bhubaneshwar:Bhubaneshwar: 9937062565 Chandigarh: 0172 – 3068051 / 9878406940, Chennai: 044- Chandigarh: 9878406940, Chennai: 044-66881190 / 98400 96828/ 9003072863, Cochin: 0484- 6533130/ 9895168160, Coimbatore: 96828/ 9003072863, Cochin: 0484- 6533130/ 9895168160, Coimbatore:0422 4504047- 48 / 9994997599, Durgapur: 9932241935, Goa: 0832 2422720/ 9923285799, 4504047- 9994997599, Durgapur: 9932241935, Goa: 2422720/ 9923285799,Gorakhpur:Gorakhpur: 8090482796 Hyderabad: 040 64557001/9849523638, Hubli: 0836 -4264140/ Hyderabad: 64557001/9849523638, Hubli: 4264140/9663383659 Indore: Indore: 0731 4286032 / 9826012555, 9826012555, Jaipur: Jaipur: 01414043108/4043101/9950852103, Jalandhar: 9872838208, Jammu: 9419845915, Jamshedpur:4043108/4043101/9950852103, Jalandhar: 9872838208, Jammu: 9419845915, Jamshedpur:9334289963, Kanpur:98392-96100, Kolhapur:9334289963, Kanpur:98392-96100, Kolhapur: 0231 6614834-5/9923539066, Kolkata: 033- 6614834- 9923539066, Kolkata: 033-66262709/10/66262709/10/ 98315 00225, Lucknow: 0522 4003245 / 3052460 / 098381 19887, Ludhiana: 00225, Lucknow: 19887, Ludhiana:0161 5029019 / 9878114700, Madurai: 9865966013, Mangalore: 0824-2443609/9663027893 9878114700, Madurai: 9865966013, Mangalore: 0824-2443609/Mumbai: 022-Mumbai: 022-61366600 / 6115 5503, Nagpur: 0712 6621511 / 9372695617, Nashik: 0253 5503, Nagpur: 9372695617, Nashik: 6619211/ 9960025000, Delhi: 49533301-02, Pune: 020-32912911/6611791 / 6619211/ 9960025000, New Delhi: 011 49533301-02, Pune: 020-32912911/25510468, Raipur:25510468, Raipur: 0771 4224107 / 9926808555, Rourkela: 9437648485, Siliguri: 0353 9926808555, Rourkela: 9437648485, Siliguri:2545474/ 9800202292, Varanasi:2545474/ 9800202292, Varanasi: 9839165055 Vijaywada: 9676785656, Vishakhapatnam: 0891 Vijaywada: 9676785656, Vishakhapatnam:6620401/9676970777, Trichy: Trivandrum: 9605601122,6620401/9676970777, Trichy: 9952142228 , Trivandrum: 9605601122, Rajkot : 0281 -248013142
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