L&T India Value Fund is one of the most consistent mutual funds that follow a value-oriented investment strategy. The portfolio, as well as the investment strategy, is aggressive but maintaining stability in the returns from a high-risk investment strategy is an outstanding feature of the scheme due to the abilities of fund manager Mr Venugopal Manghat. The experts at MySIPonline have maintained a buy call for long term gains on L&T India Value Fund. Read to know why this scheme can be fruitful in the long term for suitable investors and what can be gained from the scheme.
L&T India Value Fund for 5 Years
In the next 5 years, the market conditions are expected to be strong as the indices are expected to touch new heights. This will allow value buys to deliver higher returns in the long term. L&T India Value Fund has faced similar market conditions in the past and has excelled in the category by being a top performer. The tested strategies of Mr Manghat can be trusted for long term gains as suitable investors have never been disappointed by the scheme. The market conditions have been volatile for a while but after the return of Modi government for the next 5 years, expectations are bullish but nothing can be guaranteed in the equity market. However, if the market behaves as per the expectations, L&T India Value Fund can be one of the most beneficial schemes for the next 5 years.
The Investment Style and Performance
Despite being grouped in the category of value-oriented mutual funds, stocks with better growth potential are targeted at a reasonable price. The stocks are picked after a detailed analysis from a bottom-up perspective. L&T India Value Fund involves moderate risk as the involvement of mid and small-cap stocks is slightly lesser than the category average. The investment strategy of Mr Manghat has been working fine for the scheme as the trailing returns of the scheme are among the best in the segment most of the time.
Due to consistent performance, the AUM of L&T India Value Fund has escalated dramatically in the last 2-3 years. From nearly Rs 1,500 in April 2016, the AUM has snowballed to approximately Rs 8,500 in 2019 which is still growing at a great pace.
Expectations in the Next 5 years
The portfolio of L&T India Value Fund is slightly underweight on financial sector while majorly overweight on the construction sector. For the next few years, the construction sector is expected to be backed up by the government for infrastructure development. The stock selection has been strategically done to deliver the best results in the next 5 years. L&T India Value Fund has provided best rolling returns for a tenure of 5 years however, even longer investment can be more rewarding. Investors can expect trailing returns of more than 12% in the next 5 years but if market conditions are friendly, it may go above 16%. The SIP calculator can be used at MySIPonline to get a better perspective of the expected wealth gain.
Due to superior management strategy and sound track record, L&T India Value Fund is a good option for SIP of 5 years. The fund is ideal for investors with moderate to high risk appetite who seek long term capital gains from value investing strategy. To know more about the fund, connect with the financial experts at MySIPonline.
