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3 star

L&T Credit Risk Fund


Debt: Credit Risk

1 Lakh

Investment Grown to
₹ 1.01 Lakh

₹ 10000

Monthly SIP Grown to
₹ 1.22 Lakh

Suitability:

Credit risk funds invest mainly in bonds which are rated AA or below by credit rating agencies. The lower rating indicates a higher possibility of these bonds defaulting on repayment of investors' money. Therefore, these funds are the riskiest among debt fund categories. But they compensate for this additional risk with a higher return potential as these bonds offer better rates of interest than the highest rated bonds.

However, retail investors can avoid these funds altogether. There are far too many kinds of debt funds with a highly nuanced classification based on the type or duration of bonds they can invest in. We believe that so many fund categories add to complexity which is easily avoidable. Retail investors can simply invest in Liquid funds for an investment horizon of up to one year and Short Duration funds for the fixed income allocation (which should be 100 per cent for an investment horizon of up to three years) in their longer-term portfolios.

Taxability of earnings:

Capital gains

  • If the mutual fund units are sold after 3 years from the date of investment, gains are taxed at the rate of 20% after providing the benefit of inflation indexation.
  • If the mutual fund units are sold within 3 years from the date of investment, entire amount of gain is added to the investors' income and taxed according to the applicable slab rate.
  • No tax is to be paid as long as you continue to hold the units.

Dividends

  • Dividends are added to the income of the investors and taxed according to their respective tax slabs. Further, if an investor's dividend income exceeds Rs. 5,000 in a financial year, the fund house also deducts a TDS of 10% before distributing the dividend.

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(₹)
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Trailing Returns (%)

YTD 1-Day 1-W 1-M 3-M 6-M 1-Y 3-Y 5-Y 7-Y 10-Y
Fund 1.30 -0.09 0.08 0.57 3.23 0.05 1.40 3.59 5.94 7.34 7.44
CCIL T Bill Liquidity Weight 2.20 0.01 0.05 0.18 0.64 1.81 3.71 4.06 4.27 4.78 4.78
Debt: Credit Risk -2.22 -0.04 0.12 0.58 3.27 -2.97 -0.84 0.97 3.76 6.23 7.05
Rank within category 13 18 14 11 12 13 12 9 7 3 --
Number of funds in category 19 19 19 19 19 19 19 17 15 6 3

As on 06-Aug-2020

Peer Comparison

Fund name Rating Launch Date 1-Year Return 3-Year Return 5-Year Return Expense Ratio Assets (Cr)
L&T Credit Risk Fund  | Invest Online
3 star
Oct-09 1.40 3.59 5.94 1.66 339
ICICI Prudential Credit Risk Fund  | Invest Now
5 star
Dec-10 10.23 7.88 8.31 1.60 6,562
HDFC Credit Risk Debt Fund - Regular Plan  | Invest Online
4 star
Mar-14 9.43 7.05 8.22 1.58 6,258
SBI Credit Risk Fund  | Invest Online
4 star
Jul-04 8.56 6.59 7.80 1.54 3,895
Kotak Credit Risk Fund Regular Plan  | Invest Online
4 star
May-10 7.08 6.70 7.81 1.86 2,004

Best & Worst Performance

Best (Period) Worst (Period)
Week 3.12 (03-Jul-2020 - 10-Jul-2020) -3.13 (23-Apr-2020 - 30-Apr-2020)
Month 4.12 (12-Jun-2020 - 13-Jul-2020) -4.44 (31-Mar-2020 - 30-Apr-2020)
Quarter 4.27 (28-Aug-2013 - 27-Nov-2013) -4.95 (09-Mar-2020 - 08-Jun-2020)
Year 12.61 (19-Aug-2013 - 19-Aug-2014) -3.40 (03-Jun-2019 - 02-Jun-2020)

Risk Measures (%)

Mean Std Dev Sharpe Sortino Beta Alpha
Fund 3.68 4.09 -0.38 -0.32 -1.02 -2.75
CCIL T Bill Liquidity Weight 4.03 0.29 -4.08 -7.51 -- --
Debt: Credit Risk 1.39 6.73 -0.22 -0.04 -3.33 -7.79
Rank within category 9 10 9 11 10 8
Number of funds in category 18 18 18 18 18 18

The Risk Measures have been calculated using calendar month returns for the last three years.

As on 31-Jul-2020

Portfolio Aggregates

Fund 1Y High 1Y Low Category
Number of Securities 14 70 13 25
Modified Duration (yrs) 2.04 2.29 0.76 --
Average Maturity (yrs) 2.72 3.01 0.96 --
Yield to Maturity (%) 9.12 11.16 9.12 --

Value Research Fund Style

Credit Rating vis-à-vis Category

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Top Holdings

Company Instrument Credit Rating 1Y Range % Assets
equal 8.25% Vizag General Cargo Berth 30/09/2020 Structured Obligation AA 3.66 - 29.23 29.23
equal Export-Import Bank 19/05/2023 Certificate of Deposit AAA 0.00 - 8.98 8.98
equal 6.87% National Bank Agr. Rur. Devp 2030 Bonds/NCDs AAA 0.00 - 7.57 7.57
new 9.91% Jhajjar Power 28/04/2023 Debenture AA- 0.00 - 7.39 7.39
equal 5.79% GOI 2030 GOI Securities SOV 0.00 - 7.32 7.32
new 8.45% Tata Power Renewable Energy 25/05/2022 Structured Obligation AA 0.00 - 5.97 5.97
new 9.90% Coastal Gujarat Power 27/08/2028 Debenture AA 0.00 - 4.22 4.22
new 8.93% IIFL Home Finance 14/04/2023 Debenture AA 0.00 - 7.59 4.04
new 11.10% Hinduja Leyland Finance 2022 Non Convertible Debenture AA- 0.00 - 3.53 3.53
new 11.40% Hinduja Leyland Finance 15/06/2021 Debenture AA- 0.00 - 2.96 2.96
equal 7.70% Nat. Highways Authority 13/09/2029 Non Convertible Debenture AAA 0.00 - 1.56 1.56
down SP Jammu Udhampur Highway 30/06/2023 Debenture AAA 0.50 - 11.38 0.85
equal 11.60% Reliance Broadcast Network 2020 Debenture D 0.00 - 0.29 0.00
equal 10.75% Dewan Housing Fin. Corpn. Debenture D 0.00 - 0.00 0.00

up down equal Indicates an increase or decrease or no change in holding since last portfolio
new Indicates a new holding since last portfolio

As on 30-Jun-2020

Fund Manager

— Jalpan Shah since 21-Mar-2020

Education: Mr. Shah is a B.E. (Mechanical) and holds a PGDM.

Experience: Prior to joining L&T, 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.

Funds Managed:

— Shriram Ramanathan since 24-Nov-2012

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.

Funds Managed:


-0.09%

Change from previous, NAV as on 06-Aug-2020

Growth: ₹ 21.4044

Dividend Yearly: ₹ 10.6794

Dividend Monthly: ₹ 10.1837


Investment Strategy

The scheme seeks to generate regular returns and capital appreciation by investing predominantly in AA and below rated corporate bonds, debt, government securities and money market instruments.

Investment Details

Minimum Investment (₹) 10,000
Minimum Addl Investment (₹) 1,000
Minimum SIP Investment (₹) 1,000
Minimum No of Cheques 6
Minimum Withdrawal (₹) 500
Minimum Balance (₹) 500
Exit Load For units in excess of 10% of the investment,1% will be charged for redemption within 365 days

Basic Details

Fund House: L&T Mutual Fund
Launch Date: 08-Oct-2009
Return Since Launch: 7.28%
Benchmark: CRISIL Composite Credit Risk
Riskometer: Moderate
Type: Open-ended
Assets: ₹ 339 Cr (As on 30-Jun-2020)
Expense: 1.66% (As on 30-Jun-2020)
Risk Grade: Average
Return Grade: Average

Most Recent Dividends

Plan Record Date Dividend (₹ / Unit)  
Dividend Monthly27-Jul-20200.0700

 27-Apr-20200.0500
 26-Mar-20200.0360
 25-Feb-20200.0360
 27-Jan-20200.0360
 26-Dec-20190.0360
 25-Nov-20190.0360
 25-Oct-20190.0360
 25-Sep-20190.0360
 26-Aug-20190.0360
 25-Jul-20190.0360
 25-Jun-20190.0360
 27-May-20190.0432
 25-Apr-20190.0432
 25-Mar-20190.0432
 25-Feb-20190.0432
 25-Jan-20190.0432
 26-Dec-20180.0432
 26-Nov-20180.0432
 25-Oct-20180.0432
 25-Sep-20180.0432
 27-Aug-20180.0432
 25-Jul-20180.0432
 25-Jun-20180.0432
 25-May-20180.0504
Dividend Yearly20-Mar-20200.5042

 22-Mar-20190.5042
 23-Mar-20180.5056
 23-Mar-20170.2889
 23-Mar-20160.2889

Contact Information

AMC: L&T Investment Management Ltd

Address: Brindavan Plot No. 177, CST Road Kalina, Santacruz (East) Mumbai - 400098

Phone: 022-66554000 / 1800-2000-400

Fax: 022-66554002

Email: [email protected]

Website: http://www.lntmf.com

Registrar & Transfer Agent: Computer Age Management Services Ltd.

Address: 7th Floor, Tower II, Rayala Towers, 158, Anna Salai, Chennai - 600002

Phone: 1800-3010-6767 / 1800-419-7676

Fax: 044-30407101

Email: [email protected]

Website: www.camsonline.com

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