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L&T Credit Risk Fund


1 Lakh

Investment Grown to
₹ 1.03 Lakh

₹ 10000

Monthly SIP Grown to
₹ 1.22 Lakh

Analyst's Choice?

Suitability:

Credit risk funds invest mainly in corporate bonds which are below the highest rating assigned 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 of all types of debt funds. However, they compensate for this additional risk with a higher return potential as these bonds offer better rates of interest than highest rated bonds. Moreover, investors can also benefit if the rating of these bonds is subsequently upgraded.

But like most other debt fund categories, we believe that retail investors can avoid this one as well. In our opinion, debt funds make sense for retail investors only if they are investing for 3 years or less. For that kind of investment horizon, Liquid Debt funds and Short Term debt funds are much more suitable.

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 paid by the mutual fund scheme are taxed at the rate of 25% (effectively 29.12%, including surcharge and cess). This is known as Dividend Distribution Tax (DDT). Though the investor does not pay this tax directly, it is deducted from the dividend income before passing on to the investor.

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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 0.74 0.03 0.24 0.80 2.18 1.06 2.53 4.82 6.77 7.38 7.68
CCIL T Bill Liquidity Weight 0.24 0.00 0.07 0.28 0.84 1.91 4.21 4.15 4.45 4.78 4.69
Debt: Credit Risk -0.17 -0.01 0.20 -0.10 0.52 1.31 -0.26 3.34 6.44 7.24 7.22
Rank within category 7 16 14 8 6 15 11 10 7 5 --
Number of funds in category 20 20 20 20 20 20 20 17 13 7 2

As on 24-Jan-2020

Best & Worst Performance

Best (Period) Worst (Period)
Week 1.42 (29-Aug-2013 - 05-Sep-2013) -2.65 (11-Sep-2019 - 18-Sep-2019)
Month 2.67 (20-Aug-2013 - 19-Sep-2013) -2.75 (26-Aug-2019 - 25-Sep-2019)
Quarter 4.27 (28-Aug-2013 - 27-Nov-2013) -2.82 (20-May-2013 - 19-Aug-2013)
Year 12.61 (19-Aug-2013 - 19-Aug-2014) 1.88 (19-Sep-2018 - 20-Sep-2019)

Risk Measures (%)

Mean Std Dev Sharpe Sortino Beta Alpha
Fund 4.91 2.34 -0.35 -0.32 3.88 5.57
CCIL T Bill Liquidity Weight 4.08 0.26 -6.21 -10.52 -- --
Debt: Credit Risk 3.83 4.18 -0.14 0.04 2.63 2.43
Rank within category 10 8 11 12 15 7
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-Dec-2019

Portfolio Aggregates

Fund 1Y High 1Y Low Category
Number of Securities 39 84 39 51
Modified Duration (yrs) 1.57 1.74 1.47 1.51
Average Maturity (yrs) 2.26 2.44 2.02 1.92
Yield to Maturity (%) 9.67 10.84 9.48 9.77

Value Research Fund Style

Credit Rating vis-à-vis Category

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Top Holdings

Company Instrument Credit Rating 1Y Range % Assets
equal 9.65% Green Infra Wind Energy 2023 Debenture AA 4.10 - 8.30 8.30
equal 10.80% Samasta Microfinance 22/05/2020 Debenture A 4.09 - 8.25 8.25
equal 9.18% Renew Power 30/11/2022 Debenture A+ 3.24 - 6.59 6.59
equal Bharat Aluminium Co. 30/06/2020 Debenture AA- 2.67 - 6.36 6.36
equal 8.25% Vizag General Cargo Berth 30/09/2020 Structured Obligation AA 2.53 - 5.50 5.50
equal 8.45% Tata Power Renewable Energy 25/05/2022 Structured Obligation AA 3.29 - 5.49 5.49
equal Jhajjar Power 30/04/2022 Debenture AA- 0.00 - 4.98 4.98
equal 8.22% National Bank Agr. Rur. Devp 13/12/2028 Debenture AAA 2.16 - 4.66 4.66
down 11.25% Syndicate Bank Bonds A+ 2.74 - 4.81 3.32
equal 8.30% IRFC 25/03/2029 Debenture AAA 0.00 - 2.90 2.90
equal 7.55% IRFC 2029 Debenture AAA 0.00 - 2.77 2.77
equal 8.58% Aadhar Housing Finance 23/06/2020 Structured Obligation AA 0.00 - 2.74 2.74
equal SP Jammu Udhampur Highway 30/06/2023 Debenture AAA 0.36 - 2.50 2.50
equal 8.93% IIFL Home Finance 14/04/2023 Debenture AA 1.27 - 2.49 2.49
equal Jhajjar Power 30/04/2023 Debenture AA- 0.00 - 2.49 2.49
equal 10.05% Indostar Capital Finance 2020 Debenture AA- 1.21 - 2.46 2.46
equal 9.87% Indofil Industries 28/09/2020 Debenture A+ 1.02 - 2.09 2.09
equal 9.87% Indofil Industries 26/03/2021 Debenture A+ 1.02 - 2.08 2.08
equal 9.87% Indofil Industries 27/03/2020 Debenture A+ 1.02 - 2.08 2.08
equal Andhra Pradesh Expressway 15/10/2022 Debenture AAA 1.20 - 2.00 2.00
down 10.05% Indostar Capital Finance 2021 Debenture AA- 1.34 - 2.48 1.36
down 8.18% National Bank Agr. Rur. Devp 26/12/2028 Debenture AAA 0.67 - 1.33 1.16
equal 11.10% Hinduja Leyland Finance 2022 Non Convertible Debenture AA- 0.55 - 1.10 1.10
down 8.75% Indiabulls Housing Finance 26/09/2021 Debenture AA+ 0.00 - 1.97 1.05
equal SP Jammu Udhampur Highway 31/12/2024 Debenture AAA 0.43 - 0.88 0.88

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 31-Dec-2019

Fund Manager

— 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:

— Vikas Garg since 03-Apr-2017

Education: Mr. Garg is CFA MBA Finance, B-Tech and M- Tech

Experience: Prior to joining L&T Mutual Fund he has worked with Fidelity International as Credit analyst and Research Associate- Credit, ICRA as Sr Analyst and Indian Oil Corporation Ltd as Project manager

Funds Managed:


0.03%

Change from previous, NAV as on 24-Jan-2020

Growth: ₹ 21.2873

Dividend Yearly: ₹ 11.3211

Dividend Monthly: ₹ 10.3972


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: 7.61%
Benchmark: CRISIL Composite Credit Risk
Riskometer: Moderate
Type: Open-ended
Assets: ₹ 1,807 Cr (As on 31-Dec-2019)
Expense: 1.68% (As on 31-Dec-2019)
Risk Grade: Average
Return Grade: Average

Most Recent Dividends

Plan Record Date Dividend (₹ / Unit)  
Dividend Monthly26-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
 25-Apr-20180.0504
 26-Mar-20180.0506
 26-Feb-20180.0506
 25-Jan-20180.0506
 26-Dec-20170.0433
Dividend Yearly22-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: 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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dateFriday, 31-Jan-2020
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