June 19, 2021

L&T Mutual Fund: NAV, Performance & Latest MF Schemes

L&T-mutual-funds

L&T Mutual Fund is the 12th largest mutual fund house by asset size in India. The fund house manages assets worth (AUM) INR 72, 873.58 crore AUM as of March 31, 2021.

As of January 31, 2021, their AUM was INR 68,476.08, which had gone up by  INR 5919.09 Cr from its INR 63057.2 Cr in September 2020.

L&T Mutual Fund is a wholly-owned subsidiary of L&T Finance Holdings Limited, a renowned listed company registered with RBI as an NBFC.

Its stress has been on delivering superior long-term risk-adjusted performance. L&T Mutual Fund follows a disciplined approach to investment and risk management known as GEM: Generation of new ideas for both equity and fixed-income funds, Evaluation of companies based on various filters & parameters and, monitoring of portfolios, and choosing those that have the most potential. L&T Mutual Fund holds over 2, 534,445 live folios and 42 Investor Service Centres ( April 16, 2021)

L&T Mutual Fund offers a wide variety of schemes to investors. It offers Equity Funds, Fixed Income Funds, Hybrid Funds, FMPs & Closed-Ended Funds, and Smart SIP combos.

Some well-known equity schemes from its stable are L&T Midcap Fund, L&T Emerging Businesses Fund, etc. L&T Mutual Fund also offers some good debt funds.

Some prominent debt schemes are L&T Short-Term Bond Fund, L&T Credit Risk Fund, L&T Liquid Fund, etc., L&T Hybrid Equity Fund, and L&T Arbitrage Opportunities Fund, which are well-known names in the hybrid schemes category. 

L&T Mutual Fund has some of the best fund managers. The CEO is Kailash Kulkarni, the Head of Equity Investments is Venugopal Manghat, and the Head of Fixed-Income Investments is Shriram Ramanathan.

Vihang Naik manages L&T Midcap Fund and L&T Emerging Businesses Fund. Jalpan Shah is specialized in managing various debt schemes of the fund house. Praveen Ayathan manages hybrid schemes like L&T Balanced Advantage Fund and L&T Arbitrage Opportunities Fund. 

The vision of the fund house is to be an admirable, inspirational, and sustainable financial institution in the country. 

Important information about L&T Mutual Fund


 Name of the AMC
L&T Investment Management Limited
Incorporation Date30 April 1996
SponsorsL&T Finance Holdings Limited 
Trustee
L&T Mutual Fund Trustee Limited
Trustees’ NameMr. Hemant Yeshwant Joshi, (Independent Director)
Mr. Shailesh Vishnubhai Haribhakti, (Associate Director)
Mr. Shriniwas Yeshwant Joshi (Independent Director) and
Mr. Jayant Gokhale (Independent Director)  
Chief Executive Mr. Kailash Kulkarni
Compliance OfficerL&T Investment Management Ltd.,  Brindavan, Plot No. 177, C.S.T Road, Kalina,  Mumbai 400 098 Contact No.: 022-66554115 complianceofficer@lntmf.co.in
Investor Relations Officer Mr. Ankur Banthiya  
Registrar and Transfer agentM/s. Link Intime India Pvt. Ltd.  Address for correspondence C-101, 247 Park, L.B.S. Marg, Vikhroli (W), Mumbai 400 083
Tel.No. +91 22 49186000
Fax No. +91 22 49186060
Email: ltfinbuyback@linkintime.co.in
Toll-Free No. 1800 2208 78
Toll-free Number 1800 2000 400
Email Addressinvestor.line@lntmf.co.in
Registered AddressL&T Investment Management Ltd, 6th Floor, Brindavan Plot No 177, CST Road, Kalina, Santacruz (E) Mumbai – 400098 Maharashtra, India.

10 top-performing L&T Mutual Fund Schemes 

L&T Mutual Fund caters to investors with multiple needs, risk profiles as well as the horizon of investment. The funds’ performance is calculated based on various parameters such as historic performance, the fund manager’s track record, return consistency, and the AUM growth of the mutual fund. Investors can choose from over 140 L&T Mutual Fund schemes across different categories. 

1. L&T India Large Cap Fund (Category-Equity: Large Cap; Regular, Growth)

L&T India Large Cap Fund is considered suitable to generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related securities, including equity derivatives, in the Indian markets. The scheme predominantly invests in large-cap stocks. The scheme could also additionally invest in Foreign Securities.

L&T India Large Cap Fund is an Equity – Large Cap fund that was launched on Oct 23, 2007. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 10% since its launch. Ranked 56 in the Large Cap category, its NAV is INR 34.0990 (April 15, 2021).

The fund has been giving 7.92% average annual returns since inception. The benchmark for this scheme is S&P BSE 100 TRI Index. The Annual Recurring Expenses of the L&T India Large Cap Fund -Regular Plan- is 2.25% (As of 31st March 2021) and on Direct Plan is 1.41% (As on 31st March 2021.)

This product is suitable for investors who are seeking long-term capital appreciation, investment in equity and equity-related securities, including equity derivatives in the Indian markets and foreign securities; with predominant investments in large-cap stocks.

Key information

Minimum InvestmentINR 5,000
Minimum Additional Investment INR 1,000
Minimum Amount/ Number of Units for RedemptionINR 500 or 50 Unit
Exit LoadIf the units redeemed or switched out are up to 10% of the units purchased or switched in (“the limit”) within 1 year from the date of allotment: Nil. If units redeemed or switched out are over and above the limit within 1 year from the date of allotment: 1% of applicable NAV.

If units are redeemed or switched out on or after 1 year from the date of allotment: Nil. No Exit load/CDSC will be chargeable in case of switches made between different options of the Scheme.  

No Exit load will be chargeable in case of (i) Units allotted on account of dividend reinvestments, and (ii) Units issued by way of the bonus if any.
Fund sizeINR 605.57 Cr (on April 15, 2021)
Annual Recurring Expenses (Regular Plan) Annual Recurring Expenses (Direct Plan)  2.25% (As of 31st March 2021)

1.41% (As of 31st March 2021)

2. L&T Triple Ace Bond Fund (Category-Debt: Corporate Bond; Regular, Growth)

L& T Triple Ace Bond fund is suitable to generate regular and stable income for the unitholder of the Scheme. The fund is invested predominantly in AA+ and above-rated debt and money market instruments.

The corpus of the scheme would be invested primarily in debt market securities such as nonconvertible debentures, bonds issued by corporations, banks, and governments, commercial paper, certificates of deposits, and other money market instruments.

The scheme would invest predominantly in securities rated by the Credit Rating and Information Services of India Limited (CRISIL) or any other rating agency. 

L&T Triple Ace Bond Fund is a Debt – Corporate Bond fund that was launched on Jun 9, 1997. It is a fund with Moderate risk and has given a CAGR/Annualized return of 7.5% since its launch.

Ranked 39 in the Corporate Bond category, it has a NAV of INR 57.0549 (April 15, 2021). The benchmark for this scheme is CRISIL Composite Credit Risk Index.

Key information

Minimum InvestmentINR 10,000
Minimum Additional Investment INR 1,000
Minimum Amount/ Number of Units for RedemptionINR 500 or 50 Unit
Exit LoadIf the amount sought to be redeemed or switched out is invested for a period of up to 30 days from the date of allotment. : 0.5% of applicable NAV If the amount sought to be redeemed or switched out is invested for a period of more than 30 days from the date of allotment. : NIL
Fund sizeINR 6,294.85Cr (on April 15, 2021)
Annual Recurring Expenses (Regular Plan) Annual Recurring Expenses (Direct Plan)  0.63% (As of 31st March 2021)

0.27% (As of 31st March 2021)

3. L&T Hybrid Equity Fund (Category-Hybrid: Aggressive; Regular-Growth)

L&T Hybrid Equity Fund seeks to generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related securities and to generate reasonable returns through a portfolio of debt and money market instruments.

L&T Hybrid Equity Fund is a Hybrid Equity fund that was launched on Feb 7, 2011. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 12.6% since its launch.

This fund is ranked 5 in the Hybrid Equity category. The benchmark for this fund is CRISIL Hybrid 35+65 – Aggressive Index. It has a NAV of INR 32.3750 ( April 15, 2021).

Key information

Minimum InvestmentINR 5,000
Minimum Additional Investment INR 1,000
Minimum Amount/ Number of Units for RedemptionINR 500 or 50 Unit
Exit LoadIf the units redeemed or switched out are up to 10% of the units purchased or switched in (“the limit”) within 1 year from the date of allotment: Nil. If units redeemed or switched out are over and above the limit within 1 year from the date of allotment: 1 % of Applicable NAV.

If units are redeemed or switched out on or after 1 year from the date of allotment: NIL. A switch-out or a withdrawal under SWP may also attract an Exit Load like any Redemption.

No Exit Load/CDSC will be chargeable in case of switches made between different options of the Scheme. No Exit Load will be chargeable in respect of redemption/switch out of (i) Units allotted on account of dividend re-investments; and (ii) Units issued by way of the bonus if any.
Fund sizeINR 5,732.90 Cr (on April 15, 2021)
Annual Recurring Expenses (Regular Plan) Annual Recurring Expenses (Direct Plan)  1.76% (As of 31st March 2021)


0.80% (As of 31st March 2021)

4. L&T Balanced Advantage Fund (Formerly Known As L&T Dynamic Equity Fund)  (Category-Hybrid: Dynamic Asset Allocation; Regular, Growth)

L&T Dynamic Equity Fund seeks to generate long-term capital appreciation from a diverse portfolio of equity and equity-related securities and to generate reasonable returns by investing in a portfolio of debt and money market instruments and arbitrage opportunities in the cash and derivative segments of the equity markets.

L&T Dynamic Equity Fund is a Hybrid – Dynamic Allocation fund that was launched on Feb 7, 2011. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 11.1% since its launch.

Ranked 28 in the Dynamic Allocation category, it has a NAV of INR 28.9420 (April 15, 2021). The benchmark for this fund is 50% – S&P BSE-200 TRI Index and 50% CRISIL Short-Term Bond Fund Index.

Key information

Minimum InvestmentINR 5,000
Minimum Additional Investment INR 1,000
Minimum Amount/ Number of Units for RedemptionINR 500 or 50 Unit
Exit LoadIf the units redeemed or switched out are up to 10% of the units purchased or switched in (“the limit”) within 1 year from the date of allotment: Nil.

If units redeemed or switched out are over and above the limit within 1 year from the date of allotment: Nil. A switch out or withdrawal under SWP or transfer under STP (Except a transfer under STP (except a switch out or transfer under STP into any of the equity schemes or Fund of Fund schemes) may also attract an exit load/CDC like any redemption.

No Exit Load/CDSC will be chargeable in case of switches made between different options of the Scheme. No Exit Load will be chargeable in respect of redemption / switch out of redemption of; (i) Units allotted on account of dividend.

In case of units switched out/systematically transferred to another option/plan within the same plan/Scheme and if subsequently redeemed, for the purpose of determining the Exit Load, the date when such units were first allotted in the respective plan/Scheme will be considered as the purchase/allotment date.
Fund sizeINR  1,014.10  Cr (on April 15, 2021)
Annual Recurring Expenses (Regular Plan) Annual Recurring Expenses (Direct Plan)  1.95% (As of 31st March 2021)

0.70%  (As of 31st March 2021)

5. L&T Banking and PSU Debt Fund (Category-Debt: Growth; Regular, Growth)

L&T Banking and PSU Debt Fund are to generate reasonable returns by primarily investing in debt and money market securities that are issued by Banks, Public Sector Undertakings (PSUs) and Public Financial Institutions (PFIs) in India. L&T Banking and PSU Debt Fund is a Debt – Banking & PSU Debt fund that was launched on Sep 12, 2012.

It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 5% since its launch. It is ranked 39 in the Banking & PSU Debt category. Its NAV is INR 19.4495 (April 15, 2021). The benchmark for this fund is NIFTY Banking & PSU Debt Index.

Key information

Minimum InvestmentINR 10,000
Minimum Additional Investment INR 1,000
Minimum Amount/ Number of Units for RedemptionINR 500 or 50 Unit
Exit LoadNIL
Fund sizeINR  6,060.61Cr (on April 15, 2021)
Annual Recurring Expenses (Regular Plan) Annual Recurring Expenses (Direct Plan)  0.61% (As of 31st March 2021)

0.21% (As of 31st March 2021)

6. L&T Gilt Fund Regular (Category-Debt: Growth; Regular, Growth)

L&T Gilt Fund seeks to generate returns from a portfolio of investments in Government Securities. L&T Gilt Fund is a Debt – Government Bond fund that was launched on Mar 29, 2000.

It is a fund with Moderate risk and has given a CAGR/Annualized return of 8.3% since its launch. Ranked 10 in the Government Bond category, it has a NAV of INR 53.5978 (April 15, 2021).

The benchmark for this fund is CRISIL Corporate Bond Composite Index.

Key information

Minimum InvestmentINR 10,000
Minimum Additional Investment INR 1,000
Minimum Amount/ Number of Units for RedemptionINR 500 or 50 Unit
Exit LoadNIL
Fund sizeINR  282.82 Cr (on April 15, 2021)
Annual Recurring Expenses (Regular Plan) Annual Recurring Expenses (Direct Plan)  1.70% (As of 31st March 2021)

0. 45% (As of 31st March 2021)

7. L&T Short Term Bond Fund (Category-Debt: Short Duration Fund; Regular, Growth)

The investment aim of the scheme is to generate returns for investors with a short-term investment horizon by investing in fixed-income securities of shorter-term maturity.

It aims to generate regular returns and capital appreciation by investing in debt, government, and money market securities.

L&T Short-Term Bond Fund is a Debt – Short-term Bond fund that was launched on Dec 27, 2011. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 8.3% since its launch.

It is ranked 50 in the Short-Term Bond category. Its NAV is INR 20.8765 (April 15, 2021). The benchmark for this fund is NIFTY Short Duration Debt Index.

Key information

Minimum InvestmentINR 10,000
Minimum Additional Investment INR 1,000
Minimum Amount/ Number of Units for RedemptionINR 500 or 50 Unit
Exit LoadNIL
Fund sizeINR  4,515.41 Cr (on April 15, 2021)
Annual Recurring Expenses (Regular Plan) Annual Recurring Expenses (Direct Plan)  0.75% (As of 31st March 2021)

0.25% (As of 31st March 2021)

8. L&T Flexicap Fund (Formerly known as L&T Equity Fund) (Category-Equity: Multi-Cap; Regular, Growth)

L&T Equity Fund seeks to generate long-term capital growth from a diversified portfolio of predominantly equity and equity-related securities.

This is an Equity – Multi-Cap fund that was launched on May 16, 2005. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 15.9% since its launch. Ranked 25 in the Multi-Cap category, its NAV is INR  100.3870 (April 15, 2021). The benchmark for this fund is S&P BSE-500 TRI Index.

Key information

Minimum InvestmentINR 5,000
Minimum Additional Investment INR 1,000
Minimum Amount/ Number of Units for RedemptionINR 500 or 50 Unit
Exit LoadNIL
Fund sizeINR  2,564.96 Cr (on April 15, 2021)
Annual Recurring Expenses (Regular Plan) Annual Recurring Expenses (Direct Plan)  1.88% (As on 31st March 2021)

1.24% (As on 31st March 2021)
  

9. L&T India Value Fund (Category-Equity: High Risk; Regular, Growth)

L&T India Value Fund aims to generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related securities in the Indian markets with a higher focus on undervalued securities.

The scheme could also additionally invest in Foreign Securities in international markets. This is an Equity – Value fund that was launched on Jan 8, 2010. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 14.9% since its launch.

It is ranked 4 in the Value category. Its NAV is INR 45.6410 (April 15, 2021). The benchmark for this fund is S&P BSE 200 TRI Index.

Key information

Minimum InvestmentINR 5,000
Minimum Additional Investment INR 1,000
Minimum Amount/ Number of Units for RedemptionINR 500 or 50 Unit
Exit LoadIf the units redeemed or switched out are up to 10% of the units purchased or switched in (“the limit”) within 1 year from the date of allotment: Nil.

If units redeemed or switched out are over and above the limit within 1 year from the date of allotment: 1% of applicable NAV. If units are redeemed or switched out on or after 1 year from the date of allotment: Nil
Fund sizeINR  6,613.11Cr (on April 15, 2021)
Annual Recurring Expenses (Regular Plan) Annual Recurring Expenses (Direct Plan)  1.71% (As of 31st March 2021)

0.82% (As of 31st March 2021)

10. L&T Resurgent India Bond Fund (Formerly Known As L&T Resurgent India Corporate Bond Fund) (Category-Debt: Moderate Risk)

This fund seeks to generate income by investing primarily in debt and money market securities of fundamentally strong corporate/companies in growth sectors that are closely associated with the resurgence of the domestic economy, with the flexibility to follow a more conservative investment approach during economic downturns. L&T Resurgent India Bond Fund is a Debt – Medium-term Bond fund that was launched on Feb 2, 2015.

It is a fund with Moderate risk and has given a CAGR/Annualized return of 7.7% since its launch. Its NAV is INR 15.8417 (April 15, 2021). 

Key information

Minimum InvestmentINR 5,000
Minimum Additional Investment INR 1,000
Minimum Amount/ Number of Units for RedemptionINR 500 or 50 Unit
Exit LoadOn or before 1 year from the date of allotment or Purchase applying First in First Out basis – 1% of applicable NAV. After 1 year – NIL
Fund sizeINR  806.95 Cr (on April 15, 2021)
Annual Recurring Expenses (Regular Plan) Annual Recurring Expenses (Direct Plan)  1.50%  (As of 31st March 2021)

0.60% (As of 31st March 2021)

How can you invest in L&T Mutual Fund Via EduFund?

Investing in L&T mutual fund via Edufund is a simple, four-step process. 

Step 1 – Download the EduFund App from Google Play Store or Apple App Store and create an online account.

Step 2 – Select a scheme – Browse a wide range of L&T mutual fund schemes and choose the right scheme to suit your financial goals. You may invest in a Systematic Investment Plan (SIP) or a lump sum. The inbuilt recommendation engine suggests the best scheme for your financial objectives.

Step 3 – View and Track Your Transaction(s) – The amount you have invested will reflect in your EduFund account within four working days. You can track the L&T mutual fund NAV, account balance, statement, and other information in the app. Also, you can purchase, redeem, or switch L&T mutual fund units.

Step 4 – Speak with a Mutual Fund Counsellor – You can connect with a mutual fund consultant to discuss your goals and avail personalized advice. 

EduFund uses top-class authentication and encryption technologies to ensure bank-like secured transactions and safeguard your investments.  

Top 6 best performing Fund Managers At L&T Mutual Fund

The fund manager plays a critical role in driving value and generating growth for your investments. The following are the best-performing fund manager in L&T AMC whose funds have been consistently bringing some of the best returns. 

1. Mr. Venugopal Manghat- Head – Equities

Mr. Venugopal Manghat is Head – Of equities at L&T Investment Management Limited. He manages the L&T India Value Fund, L&T Business Cycles Fund, L&T India Large Cap Fund, and L&T Arbitrage Opportunities Fund. He also manages the equity component of the L&T Equity Savings Fund and L&T Monthly Income Plan. 

Mr. Manghat has an experience of 25 years in equity markets in India. Before joining L&T Investment Management, he was Co-head of Equities at Tata Asset Management.

He has worked for more than 16 years with Tata Asset Management Limited, having joined as a Management Trainee and has worked in various capacities, including as a dealer for equity & debt, as a research analyst for equity & credit, as Head of Research and managing some key equity and hybrid schemes for the company.

He started his career as a research analyst on the sell side before joining Tata Asset Management. He holds a Bachelor of Mathematics degree and an MBA in Finance.

The major funds he handles include L&T India Large Cap Fund, L&T India Value Fund, L&T Conservative Hybrid Fund (Equity Component), L&T Equity Savings Fund (Equity Component), L&T Arbitrage Opportunities Fund, L&T Business Cycles Fund, L&T Equity Fund (Co-FM), L&T Large and Midcap Fund (Co-FM), L&T Tax Advantage Fund (Co-FM), L&T Balanced Advantage Fund (Formerly known as L&T Dynamic Equity Fund), (Equity Component) (Co-FM), L&T Infrastructure Fund, L&T Hybrid Equity Fund (Equity Component), L&T Midcap Fund (Co-FM), L&T Emerging Businesses Fund, L&T Focused Equity Fund (Co-FM), L&T Emerging Opportunities Fund Series – I (Co-FM) 17 L&T Emerging Opportunities Fund Series – II (Co-FM). As of March 31, 2021, he has an AUM of INR  39,348 Cr under 35 schemes. 

2. Mr. Shriram Ramanathan – Head – Fixed Income

Mr. Shriram Ramanathan oversees the management of more than INR 30,000 crore in assets across different fixed-income funds. He has been with the Investment Management business since June 2012 and has over 20 years of experience in fixed-income markets.

Before joining the Investment Management business, he was Portfolio Manager at Fidelity (FIL) Fund Management. In his previous roles, Shriram was managing the Global Emerging Market Debt (Asia) at ING Investment Management Asia Pacific in Hong Kong for about 5 years.

His earlier assignments were with Zurich Asset Management Company in fixed income research and with the Treasury department of ICICI Bank, where he started his career in investments in 2000.

Mr. Ramanathan is a Chartered Financial Analyst and holds a Post-Graduate Diploma in Business Management from XLRI Jamshedpur and an Engineering degree from the University of Mumbai.

The mutual funds he manages at L&T include L&T Liquid Fund, L&T Low Duration Fund, L&T Credit Risk Fund, Fixed Maturity Plans (Co-FM), L&T Triple Ace Bond Fund, L&T Resurgent India Bond Fund, L&T Hybrid Equity Fund (Debt Component), L&T Short-Term Bond Fund, L&T Flexi Bond Fund, L&T Overnight Fund (Formerly known as L&T Cash Fund) (Co-FM), L&T Banking and PSU Debt Fund (Co-FM), L&T Gilt Fund (Co-FM), L&T Ultra Short Term Fund (Co-FM) and L&T Money Market Fund (Co-FM). He manages an AUM of INR 36,962 Cr under 12 schemes as of March 31, 2021.

3. Mr Praveen Ayathan

He has 28 years of experience and has been with L&T for the past eight years. Before joining L&T, he was with Kotak Asset Management Company as Manager-Equity Dealing. He is a mathematics graduate.  

The funds he handles at L&T mutual funds include Arbitrage Opportunities Fund (Co-FM), L&T Equity Savings Fund (Co-FM), L&T Balanced Advantage Fund (Formerly known as L&T Dynamic Equity Fund) (Co-FM), L&T Nifty 50 Index Fund and L&T Nifty Next 50 Index Fund. He manages an AUM of INR 3,581 Cr under 7 schemes as of March 31, 2021.

4. Mr. Vihang Naik

Mr. Vihang Naik is currently a Fund Manager at L&T Investment Management Ltd. Since 2012, he has been managing an AUM INR ₹31,947 Cr invested in 26 schemes as of March 31, 2021. He has 14 years of experience. 

Mr. Naik was initially a Research Analyst at SBICAP Securities back in 2006. He joined Motilal Oswal Securities Ltd. in 2008 as a Research Analyst. In 2010, he moved to MF Global as a Research Analyst. He holds a BMS degree from the University of Mumbai. Mr. Naik is also a Chartered Financial Analyst from the CFA Institute.

The funds he manages include L&T Equity Fund, L&T Large and Midcap Fund, L&T Tax Advantage Fund, L&T Balanced Advantage Fund (Formerly known as L&T Dynamic Equity Fund) (Equity Component), L&T Infrastructure Fund (Co-FM), L&T Hybrid Equity Fund (Equity Component) (Co-FM), L&T Midcap Fund, L&T Emerging Businesses Fund (Co-FM), L&T Focused Equity Fund, L&T India Large Cap Fund (Co-FM), L&T Emerging Opportunities Fund Series – I, L&T Emerging Opportunities Fund Series – II, L&T India Value Fund (Co-FM), L&T Business Cycles Fund (Co-FM), L&T Equity Savings Fund (Equity Component) (Co-FM) and L&T Conservative Hybrid Fund (Equity Component) (Co-FM).

5. Mr. Jalpan Shah

Mr. Jalpan Shah is currently the Portfolio Manager of Fixed Income at L&T Investment Management Ltd. He manages an AUM of INR 36,755 Cr under 51 schemes (March 31, 2021). 

He was a Research Analyst at UTI Mutual Fund in 2004. In 2007, he joined Fidelity International as an Associate Trader of Fixed Income. Mr. Shah has a degree in Mechanical Engineering from Sardar Patel University. He is an MBA in Finance from T. A. Pai Management Institute. 16 years of experience. 

The funds he manages include L&T Liquid Fund (Co-FM), L&T Ultra Short Term Fund, L&T Short-Term Bond Fund (Co-FM), L&T Flexi Bond Fund (Co-FM), L&T Gilt Fund, L&T Banking and PSU Debt Fund, L&T Overnight Fund (Formerly known as L&T Cash Fund), Fixed Maturity Plans, L&T Conservative Hybrid Fund (Debt Component), L&T Balanced Advantage Fund (Formerly known as L&T Dynamic Equity Fund) (Debt Portion), L&T Equity Savings Fund (Debt Portion), L&T Triple Ace Bond Fund (Co-FM), L&T Money Market Fund, L&T Arbitrage Opportunities Fund (Debt Portion), L&T Low Duration Fund (Co-FM), L&T Credit Risk Fund (Co-FM), L&T Resurgent India Bond Fund (Co-FM).

6. Mr. Alok Ranjan

Mr. Alok Ranjan is an investment professional with L&T Investment Management. He is an MBA from IIM Calcutta and is a graduate of NIT Warangal where he graduated with an Institute Rank and a Gold Medal. He has over 8 years of domain experience, and his Sector coverage includes Auto and Auto Ancillaries, Infra, Cement, Capital Goods, Chemicals, Agri related, and Oil and Gas. 

He manages L&T Equity Fund, L&T India Large Cap Fund, L&T Large and Midcap Fund, L&T India Value Fund, L&T Hybrid Equity Fund, L&T Emerging Businesses Fund, L&T Arbitrage Opportunities Fund, and L&T Business Cycles Fund. He manages an AUM of INR 26,641 Cr under 12 schemes as on March 31, 2021.   

Why invest in L&T MF Schemes? 

L&T Mutual Fund is one of the leading AMCs in India that offers a diverse range of schemes to cater to the specific requirements of individuals based on their expected returns, risk appetite, and other related factors.

Individuals can purchase and redeem their funds at their convenience with little hassle, either through online or offline mode.

L&T Mutual Fund evaluates companies by considering several parameters such as liquidity, business attractiveness, management track record, and much more. Investors can choose from options like Equity Funds, Fixed Income Funds, Hybrid Funds, and Fixed Maturity Plans offered by the AMC.

L&T offers nearly 146 funds to choose from. The fund house manages assets worth (AUM) INR 72, 873.58 crore AUM as of March 31, 2021. 

The fund house is known for its disciplined approach to investment and risk management and it has 42 investor service centers (as on April 15, 2021) to cater to all categories of investors.

The distinguished fund house is reputed for its sound investment management practices and knowledgeable fund management team.

Select EduFund for investing in L&T Mutual Fund

EduFund makes the process of investing in L&T mutual funds convenient. EduFund’s experienced consultants give you customized solutions for all your financial goals. You can start investing from a lowly INR 5,000 and grow your capital comfortably.

With EduFund, you get the following benefits:

  • Customized Research-Based Financial Plan – EduFund’s scientific fund tracker screens over 1 lakh data points and 400 financial scenarios to recommend you the best mutual funds. 
  • Customer-Friendly Counsellors Help You Create a Financial Plan – EduFund’s counselors are trained to handle all kinds of queries from customers. They spend as much time with you as you need and resolve all your issues to help you create a robust financial plan.
  • Invest Less, Earn More – Not only the best Indian mutual funds, but EduFund also offers you the facility to invest in US Dollar ETFs and international mutual funds.
  • Use Free Tools – EduFund offers various free tools for its customers, including College Savings Calculator, SIP calculator, etc. 
  • No Technical Expertise Required – You do not need to be a finance expert to understand which mutual fund is the best for you. EduFund does it for you.
  • Value-Added Benefits – You may get value-added benefits like no commission, free advisory, and nil-hidden charges.
  • Secure Transactions – EduFund is RIA-registered and uses top-class 128-SSL security to enable safe transactions.
  • Special Support for Children’s Education – EduFund has a dedicated team of experts who help you fulfill your children’s educational goals. 

FAQs

What are some best L&T mutual fund schemes to invest in?

Some of the top-performing L&T mutual funds for you to invest in are – L&T India Large Cap Fund, L&T Triple Ace Bond Fund, L&T Hybrid Equity Fund, etc.

Can I invest in L&T mutual funds online?

Yes, you can invest in L&T mutual funds online through the EduFund App. Simply download the app, register and complete your KYC, explore some of the top mutual funds and pick any to invest in.

Are there any benefits to investing in L&T mutual funds?

The top-performing L&T mutual funds help investors in building dual benefits, earn regular returns, build long-term wealth, etc.

Consult an expert advisor to get the right plan
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    4 essential tips on investing in your child's education

    4 essential tips on investing in your child's education

    Life becomes easier and more manageable with planning. A very important part of a happy and balanced life is managing your finances well. This responsibility becomes manifold if you have a family to provide for. Prioritizing the prior planning of your child’s college education can make your retirement life effortless and stress-free. Put away savings to preserve wealth. Invest money to generate more wealth. At the end of the day, gaining that fine balance between your savings, investments, and spending habits is what will secure a beautiful future for you as well as your family. Here are some pro tips on how to invest and save for your children’s college education. 1. When to start? Timing is everything. The logic is simple - the earlier you start, the more wealth you can generate and accumulate. You may begin as early as the family planning stage itself. Even if you do not have a clear sight of the stream of academics your child might pursue later in life, it does not hurt to put away money. As your child grows up, they might decide upon what line of academics they want depending on their career goals. Your savings will come in handy in reassuring your child that you are perfectly prepared to back them in realizing their dreams as there will already be a considerable amount of funds they can count on. 2. Compartmentalise your savings The habit of saving money regularly is one of the healthiest habits one can inculcate. But mastering the art of saving requires self-regulation and a sense of organization. Putting away a bulk of money indiscriminately is not the most effective way of saving. Keep track of your expenses and your income; device upon an amount you can afford to put away as savings. Make a list of all the things you need to save for - emergencies, education, health, housing, and so on. Divide your savings accordingly. The act of compartmentalizing savings can also be effective in regulating your spending habits. You can also inculcate this healthy habit in your child from an early age by encouraging them to save money from their monthly allowances. 3. Consider different investment options Investing is always an improvement upon saving because investments can generate new wealth. Thus, it is not enough to just put away money as savings; you also need to allocate funds to certain investments that suit your monetary goals. There are different kinds of investment channels you can opt for. Some of us prefer fixed or recurring deposits while others want to generate more returns and go for mutual funds. Mutual funds can be of different types depending on the factors like the amount of risk, duration, return rates, etc. The mode of payment can also vary. For example, you can go for a one-time investment or you can choose monthly SIPs. Be well aware of all kinds of investment plans available so that you can choose the best one for yourself. 4. Invest in a global education Your savings and money made from investments will be especially useful when you send your child abroad to pursue a college education. Even if you are not sure about the possibility of global education in the future, it is always advisable to remain prepared for the same. Simply saving money is not enough. Investing is a better idea and in the case of global education, it can be beneficial to invest in foreign stocks. This is because the value of the Indian currency is forecasted to fall in comparison to other stable currencies in the world. This means that the cost of living and studying abroad will be way higher than the cost of living and studying in a new city within India. Once you set your financial goals, find out about investment schemes with international equity funds from countries like the US, so that you can make money in a more stable currency. Conclusion There can be several investment goals relating to different parts of your life like yourself, your spouse, relatives, housing and accommodation, health, gadgets, and emergencies. Mixing these up will only cause chaos and distress. Hence, it is important to think separately about saving for your children’s college education and indulge in smart investments. Consult an expert advisor to get the right plan TALK TO AN EXPERT
    4 W’s of Balanced Advantage Funds

    4 W’s of Balanced Advantage Funds

    What is Balanced Advantage Fund? A balanced advantage fund is a fund that can invest 0-100% in the equity market or 0-100% in the debt market dynamically as per the prevailing market condition. For example - If a fund manager finds that the price of the equity market has gone up, he will tilt the portfolio more towards the debt market. Likewise, if the equity market trades at a discount, then the fund manager can tilt/shift the portfolio towards the equity market.  The valuation is the internal process of the fund. Based on valuation, the fund manager can take the call. This way, the fund manager can take the opportunity and change the asset allocation. The fund manager can go aggressive in the equity market or can also decide to play conservatively to reduce the portfolio's volatility. The aim is to minimize the portfolio's downside risk and maximize the returns.  Who should invest? Investors who are looking for long-term wealth creation.Investors who are not comfortable with the market volatility.Investors who do not want to face high volatility and looking for equity-like returns.Investors who are unsure which type of fund they should invest in, whether in the equity or debt-oriented fund.Risk-averse equity investors with an investment horizon of more than three years. Additional read: Financial mistakes to avoid Why should you invest? A balanced advantage fund is a dynamically rebalancing fund between two asset classes, i.e. equity and debt.It has the complete flexibility of rebalancing from 0-100% in both asset classes.It provides you with better risk-adjusted returns.It manages the equity market volatility and provides stability in the portfolio by diversifying the portfolio into the debt market.It offers you equity-like returns, which help your portfolio to grow at a much faster rate than debt funds and also helps you to beat inflation.Minimizes the downside risk and provides scope for growth by investing in the equity market. When should you invest? When the volatility in the equity market increases and you do not want to have such high exposure to the prevailing volatility.When you want equity-like returns but do not want to face high liquidity.First-time mutual fund investor looking for long-term wealth creation. Conclusion Try to allocate some portion of your portfolio towards a balanced advantage fund if you want to reduce the portfolio's volatility. A balanced advantage fund is like all season fund. Consult an expert advisor to get the right plan TALK TO AN EXPERT
    5 financial things to consider before child planning.

    5 financial things to consider before child planning.

    Both life and wallet will never be the same once you decide to have a baby. No event in your life will signify financial change quite the way this one does, from the first prenatal appointment to the day of their college graduation (and beyond). 5 financial things to consider before child planning 1. Create a budget Before you start child planning, you need to have a budget in place. You and your partner may need to create a realistic budget based on your expenses and your streams of income. Once you know how much you can afford to spend, you will be able to tackle the costs easily. A new child is a new family member that needs space! So if you need extra space once the baby is born, figure out what kind of home you can afford, whether it's a slightly larger apartment, a warm cottage, or a pricey house. Will you want the latest baby things or your sister’s passed-on ones? Think about what sort of child care would you require and get candid with your expenses before you start making any purchases. 2. Costs associated with birth As new parents, you need prenatal vitamins, alternative therapies, labor and delivery alternatives, and screening tests. Give yourself enough time to change or upgrade insurance plans should you need more comprehensive coverage. Good health insurance is vital in this economy. Hospital bills, medical fees, and maternity costs can be high. According to estimates from the industry, a straightforward delivery could cost between Rs 50,000 and Rs 70,000, but a private specialty hospital could charge up to Rs 2-3 lakh. A cesarean delivery could result in a cost rise of up to Rs 4-5 lakh. Before having a kid, you should make financial arrangements for the costs associated with the delivery and child care. 3. Consider maternity leave The vast majority of Indian employees are not entitled to paid family leave. If the mother is employed, you might need to think about taking a lengthier (unpaid) maternity leave or a sabbatical for a year or two. This can be a huge financial loss for families that rely on both streams of income. Paid parental leave is not always an option. Find out if your workplace offers paid leave for new parents and if there are any policies in your favor that you can utilize. Determine the number of weeks covered and the proportion of your salary that is used. Do you have to use your sick and vacation days first? If you don't have access to paid time off or you're going to take more unpaid time off, you might want to cut costs or rely on your savings. Additional read: Money management tips for homemakers 4. Purchase life and health insurance You'll want your child to be stable financially if something were to happen to you or your partner. A life insurance policy can assist pay for things like child care, housekeeping, cooking, and more. Purchasing maternity insurance is the first action you can take to cover maternity costs. When purchasing health insurance, (even for a couple), it is important to confirm that the policy includes coverage for maternity costs and, if applicable, any applicable waiting periods. Additionally, by paying a larger rate, you might add pregnancy coverage to a current insurance policy. Buying health insurance is most important when considering having a child. Get your health covered in your plan so that you are not financially burdened in case of a health emergency. 5. Plan for child’s education Just like the prices of lemons and oranges are growing, the cost of education is skyrocketing. Saving for your child’s college is a necessity. When it comes to saving money for college, time and compound interest are your best friends. Even while inflation is an unavoidable fact, keep in mind that education inflation is far higher. Utilizing the force of compounding is one approach to combat this, but it will only be effective if you have a long-term strategy in place. You indeed have no idea what career path your child will take, but you still need to put aside a portion of capital that can be utilized when the time comes. Right now, you need to think about the type of education you would like to offer because the practical costs of studying engineering in India vs the US would be very different. From giving birth to seeing them off to college, watching your child grow and thrive is every parent’s dream! So give those dreams wings by planning ahead and investing for their bright future!  Consult an expert advisor to get the right plan TALK TO AN EXPERT
    5 Pro tips on creating your child's education fund

    5 Pro tips on creating your child's education fund

    Everyone speaks about the rewards of preparing early for education funds and securing them as soon as possible. What they forget to explain is how to reach that goal. Fear not, for we have prepared a list of things you might want to tick off if you want to secure your child’s education.  1. Choosing the right platform is important There are a number of investment platforms available for investors. As an investor with a goal in mind (the education fund for your child), it is important to choose a platform that is built for that purpose or has certain advantages in the pursuit of your goal. There are two great advantages of choosing a goal-specific platform - one, you separate your investments in a way that you know how much amount is set aside for that particular goal every month, and second, you get the added goal-related benefits that the platform could offer. In the case of EduFund, a platform built for parents to save for their children's education fund, you have added advantages like readily available education loans if you fall short, or free counseling if your child needs it. 2. Investing in the right mutual funds  Once you decide to invest in mutual funds to achieve higher returns than Fixed Deposits, you also need to do your research to find which investment schemes are best suited for you. Many factors play crucial roles in this procedure. For example, one of the first things you need to consider is the balance between your monetary goals and the level to which these will be fulfilled by the fund returns and the risk associated.  Time is another important factor that will shape your decision in this matter. You also need to consider what exactly you want out of your investment whether it is tax reductions or high returns with high risks or more stabilized returns with low risks. To indulge in smart investments, stay aware of the best investment schemes currently trending in the stock market. 3. Investing in international stocks Parents who like to stay alert about the current trends related to the education system and finances must be well aware of the phenomenon called education inflation. This is what makes a global education exponentially more expensive than one attained within India.  The value of the Indian Rupee has depreciated over the years against foreign currencies like the American dollar. This means that the cost of a course pursued in a foreign land like the US or the UK will be tenfold compared to the same course pursued in this country. The cost of living will be equally high overseas. A smart way to deal with this problem is to invest in international equity funds. This means higher returns because if you invest in US stocks, you will be earning in dollars, not rupees. Moreover, if your investments in Indian stocks get affected by market fluctuations, you can still depend upon your foreign stock investments which will remain relatively more stable.  4. Consider the availability of education loans  Sometimes your life savings and your investment returns are not enough to fund your child’s education. Do not worry. Education loans can take care of your child’s aspirations in such situations. Even if you are in a position to be able to afford your kid’s dream college, student loans are still a healthy way to teach your kid the value of money and how to build credit.   Creditworthiness is a virtue that will financially discipline your child so that they can take monetary decisions in your absence. It will also ensure that they can take future loans as part of their education fund at low-interest rates. Only loans exceeding a very high amount of money require collateral or a security deposit, which means you can easily avail of student loans.  5. The right guidance for your children Career and academic counseling sessions are crucial for your kid if they are going through a transition phase in their lives. As their primary caregiver, you are entitled to guide their way but sometimes what might be required is professional help. You are longer required to pay for these counseling sessions. A platform like EduFund offers them the best education counseling services in India for free of cost. Let nothing stop your child from achieving their goals.  6. Expert advice to get you to your goal EduFund believes in helping you attain as much clarity on financial affairs as possible. In case of expert advice on investment, you can rely on the world-class experts from EduFund. The Edufund app provides you with all the useful tools to attain the best from your child’s education fund.  For example, it comes with a calculator that helps you calculate the education cost. This is a smart calculator developed to give you inflation-adjusted rates. This is the first step toward getting an idea of how much you will need to invest or save up as an education fund.  FAQs How do I plan my child education fund? Starting early is key to building your child's education fund. You can start saving with mutual funds, PPF, US stocks, Indian stocks, fixed deposit and much more. Before starting it is important to consult a financial advisor and figure out the cost of education before starting an SIP. Which fund is best for child education? Here are some of the best funds for your child's education fund: Axis Long-Term Equity FundSBI Equity Hybrid FundParag Parikh Flexi Cap FundAditya Birla Sun Life Tax Relief 96 Fund Growth Aditya Birla Sun Life Tax Plan-GrowthDSP BlackRock Tax Saver Fund Growth Axis Long-Term Equity Fund Growth How do you build a corpus for child education? The first step to building a corpus for child education fund is to figure out the cost using the College Cost Calculator. Knowing the financial goal you need to invest in before starting an SIP helps you remain focused and know the exact amount you need to save monthly to get started. Conclusion What seems like a mammoth task can be easily managed by diving it into smaller tasks and simplifying it. Each small step is quite crucial in itself. But once you have the checklist ready, you can be sure if not losing sight of things. DisclaimerMutual fund investments are subject to market risks. The previous performance of a fund or scheme is no guarantee of future success. Please read the offer document carefully before investing.
    5 reasons why SIP is the best investment choice?

    5 reasons why SIP is the best investment choice?

    A systematic investment plan or SIP is a plan that helps you invest in mutual funds on a regular basis.  You can choose to invest weekly, monthly or even quarterly – the most popular choice being monthly. There are multiple reasons why SIPs are the best way to grow your money especially when you have a goal to plan – e.g. your child’s education. SIPs can be bought easily and you can start with a very low amount - Rs. 500 per month. In this blog, we will talk about the ‘Big 5 advantages’ that SIPs offer to you as a parent. But before that, let's understand what a SIP is What is SIP? A SIP or systematic investment plan is an investment mode through which an investor can create a regular mechanism of investment for themselves. Let's take the example of investor X. Investor X wishes to invest Rs. 10,000 every month in a mutual fund. In this case, investor X can create a SIP for a fund they want to invest in and the money will be deducted every month automatically (the deduction can be weekly, monthly, or even quarterly, depending on the investor's choice). Think of it as a recurring deposit, with better returns. Now that we know what a SIP is, let's get to know why investing via SIP is the best choice you can make to enlarge your corpus. 5 Reasons why you should invest via SIP These are the 5 main reasons why you should invest via a systematic investment plan to reach your financial goals 1. Suitable for Long-Term Investment Any financial advisor will tell you that if you want to invest long-term, SIP is the way to go. The reason is simple, regular investing and automatic deductions keep investors motivated to stay invested and reach their investment goals quicker. During the 2008 financial recession, many people withdrew money from mutual funds. However, the ones that remained invested via SIP, attained a huge profit once the markets rose. Long-term investing makes sure that even if the market is down at the moment, once the markets rise, the investor will make profits. 2. Goal-planning ‍SIPs are good tools to plan for a future goal – to buy a 4-wheeler or to pay for college tuition fees maybe 10-15 years from now. When you determine the amount required to achieve your goal, you will know how much you should invest and how long it will take to reach your goal. This will help in planning effectively. Having financial goals is very important to creating a financially secure future. One must have a defined idea about what financial goal one wants to reach by the age of 30, 40, 50, and so on. 3. Effect of Compounding Compounding is one of the biggest advantages of a SIP. Over time your investments grow because you start earning returns not on your principal amount, but on the interest that keeps getting added to it. Let's take an example. Suppose you invest Rs.1,000 in a mutual fund which gives you a yearly return of 10% p.a. Your amount becomes 1,100. at the end of the first year. At the end of the second year, the rate of return is 11%, this time the returns will be calculated on Rs. 1,100 and not the principal amount, which is, Rs. 1,000. ‍This ensures growth of your corpus and one of the reasons why experts advice you to not withdraw your investments when the market is down. 4. Curated by Experts With the increasing number of fund types like equity, debt, mixed, gold-based etc. there is a wide variety to choose from based on your risk appetite and preferred investment duration. This has led to customized offerings based on individual needs, supervised by experts in the SIP domain. All you need is to specify your goal and timeline and you are provided with the best possible funds that can meet your future goals. ‍SIPs have become popular over the past few years, because of the ease of investing and the flexibility provided in terms of the amount of money that can be invested. You can stay invested as long as you want, although average returns have been higher when invested in the long term. Research also shows that the returns offered by SIPs are more than recurring deposits in banks, in the long term. 5. Automates Your Investment Experience SIPs automate your investment experience, which makes you a regular investor. It is easy and convenient and because of the online surge, today, it is super easy to invest via SIP. If you choose the lump sum method, you will have to manually invest an amount and there may be times when you can miss an installment. ‍With automated installments and a streamlined process, investing via SIP has now become an extremely popular method, to reach long-term goals like saving up for your child's education. Consult an expert advisor to get the right plan TALK TO AN EXPERT
    SIP
    5 tips to know before investing in US stocks

    5 tips to know before investing in US stocks

    If you want to invest in the US stock market to benefit from US stocks, you may start by opening an international trading account in India. But before investing in US equities, here are the 5 important things to know before investing in US stocks. 1. Regulatory framework One of the oldest, most effective, transparent, and well-regulated stock markets in the world is the one in the United States. On US stock markets are listed some of the largest businesses in terms of market capitalization, sales, and profitability. The worldwide exposure and flavor that US markets offer are crucial since many of these listed firms have a significant global presence, scale, and operational structure. The regulatory body that monitors the operation of the US stock markets is the Securities and Exchange Commission (SEC), which was founded in 1934. It guarantees the strict application of laws and rules that establish the highest standards of openness and integrity—essential for stock markets as well as for the safety and trust of investors. 2. Impact of Foreign Exchange  The volatility in the value of the US and other currencies should be taken into account while investing in US equities. This is because before any gain (or loss) for an Indian investment is realized, it would be converted using the appropriate exchange rate in the Indian rupee. The gains (or losses) will fluctuate in lockstep with changes in the exchange rate. An Indian investor must be aware that the exchange rate can be unpredictable and is influenced by a wide range of political, economic, and supply and demand variables. 3. Liberalized Remittance Scheme According to the Reserve Bank of India's Liberalized Remittance Scheme, an individual may invest up to $ 250000 per year in US equities from India (LRS). The cap covers any money sent abroad for purchases, travel, education, or other international transactions during the year. The investor's brokerage account has to be filled before making any investments in US equities. Investors must complete Form A-2, which is available from RBI-authorized dealers. Any sum over the $250000 cap requires RBI approval. Additional read: US stocks for investing in child education 4. Taxation To make your efforts worthwhile, it is crucial to take into account the tax consequences of your international assets. Due to the Double Tax Avoidance Agreement (DTAA) between the US and India, the same income cannot be taxed twice on investments made in the US stock market. 5. Dividend tax The dividends from US stocks are taxed at a fixed rate of 30% for overseas investors. However, as a result of the tax agreement between the US and India, citizens of India pay a 25% tax rate (deducted before distribution). However, because of the double tax avoidance agreement between the US and India, the tax paid in the US may be claimed as a foreign tax credit in your domestic filing. 6. Capital gains tax Your assets in the US are not subject to capital gains tax. However, India requires you to pay tax on your overseas capital gains. This may be divided into two groups.: Long-term capital gain (LTCG)If you keep the equities for more than 24 months before realizing capital gains, you will be subject to indexation advantages and a 20% tax rate in addition to any relevant fees and other surcharges. Short-term capital gain (STCG)Standard income-tax regulations apply to any gains from assets held for less than 24 months, and they are added to your ordinary taxable income. You must also take into account the recently implemented Tax Credited at Source or TCS. Under the new regulations, a 5% TCS will be applied to all international transfers over INR 7 Lakhs in a fiscal year. It is not an additional expenditure to deduct this advance tax when submitting your taxes each year. Charges on US stock-broking account  Using an Indian stock brokerage account to invest in the US stock market is prohibited. You would need to create one with a US stock brokerage company instead. To provide this service, the majority of Indian stock brokers who allow you to invest in US equities typically collaborate with a US stockbroker. You would also be required to pay certain fees for a US stock broking account, just like you would for an Indian trading account. This is something you should also take into consideration when you buy US stocks because these fees can reduce your earnings. These fees include Annual Maintenance Costs, brokerage charges, bank charges, transaction charges, and more. Invest in the US stocks with EduFund  Download the EduFund app and create an account to start investing in US stocks. With zero charges and no hassle account opening process from the comfort of your home, you can start investing in FAANG stocks in your portfolio to geographically diversify your portfolio!! Thus, investing in US firms and equities may give investors access to the worldwide market, credibility, and an opportunity to increase their wealth. Consult an expert advisor to get the right plan TALK TO AN EXPERT
    5 top investments for risk-averse investors

    5 top investments for risk-averse investors

    All investments are associated with risks. Yet, the risk is not uniform, and it's essential to be aware of the different levels of risks linked with all types of investment instruments. This is why the first thing to consider before investing is how much of a risk appetite has – how much risk one is willing to take. Want to know the best investment options for risk-averse investors but still generate good returns? Continue reading this article to know more! What is risk averse? Risk-averse refers to an investor who chooses to preserve the capital over and above its potential to generate returns that are higher than the average. Risk can refer to many factors – volatility, currency, market, credit rating, etc. Risk-averse can also refer to a conservative investor. Low risk symbolizes stability in investments. A low-risk investment generates guaranteed reasonable returns, if not outstanding, above benchmark returns. But chances are near zero that the principal investment amount will be lost. Whereas a high-risk investment option may gain or lose money over time. Risk-averse investors are unwilling to accept market volatility. They prefer their investments to be highly liquid - readily available to be withdrawn. Such investors usually include old investors or retired individuals who depend on their savings for their daily expenses. Additional read: Taxation in mutual funds Is FD a good option for risk-averse investors? One should constantly adjust their returns against the current inflation rate. The current Fixed Deposit interest rates are 5-7% p.a. on average. But the current inflation rates are around 6-8% p.a. Give these figures a thought. The price you pay for your everyday goods and services is rising at 6-8%, whereas your FD investments are growing at only 5-7%. FDs do not increase the value of your money over time. In fact, you actually lose money or its purchasing power over time. Do you think FDs are the safest investment option? Banks defaulting on payments is rare but definitely possible. The Deposit Insurance and Credit Guarantee Corporation (DICGC) guarantees Rs. 5 lakhs per person per bank if the bank defaults. Let's not forget the liquidity part of this instrument. Fixed deposits can have a lock-in ranging from 3-5 years. Banks penalize the investors for withdrawing money before the lock-in is over. This penalty is in the form of a reduction of interest rate by a certain percentage. What are the best investment options for risk-averse investors? The market is filled with many investment options for investors with varying risk appetites. Let's look at some of the best investment options for risk-averse investors: 1. Short-term bond fund: The best alternative for investors who do not want exposure to FDs or volatile instruments. Short-term bond funds – bond funds with low maturity and a high potential to offer better returns. Debt Funds with longer maturity are subjected to interest rate risk. But short-term bonds have a lower interest rate risk as their maturity period is much lower. 2. Municipal and Corporate Bonds: State and local governments and companies usually raise money by issuing bonds to the public. Bonds offer lower risk than stocks. When a company is winding up, the bondholders are given first preference in the payment and settlement order. 3. Other debt funds: Other debt funds include banking and PSU Funds, ultra-short duration funds, Dynamic Bonds, etc. You could always invest a lump sum in these debt-based mutual funds and opt for a Systematic Withdrawal Plan (SWP). This would ensure that along with the returns being generated on your investments, you would also get a monthly income from these investments. This investment option is one of the best options for older people who want a monthly income. 4. Liquid funds: Invest in top-rated liquid funds to avoid loss of capital with a higher degree of safety for your primary investment. Also, when the market moves up, your investment performs better and generates higher returns in line with the market. 5. Dividend growth stocks: Stocks are not as safe as cash, savings, or other debt-based instruments. But they are safer than options and futures. Dividend-paying stocks are considered safer than high-growth ones as they minimize volatility, if not eliminate it. You don't depend on the value of the stock as you get a dividend as a regular income on your investment. Apart from debt-based investments, you could also apply a staggered investment approach in equity-based mutual funds for a long-time horizon. A periodically rebalanced portfolio helps you minimize your portfolio volatility and ensures efficient capture of up-market and down-market movements even with equity exposure.  Take the help of an Investment Advisor who will guide you through goal-based planning and help you choose your investments that are most suitable to your goals and objectives and your risk appetite. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT
    5 types of mutual funds

    5 types of mutual funds

    Investing in mutual funds for your child’s education is always advisable. First of all, it is a less stressful option than investing in direct equity stocks because that requires you to have in-depth knowledge of market trends and fluctuations. Secondly, with mutual funds, there are a variety of schemes you can opt for depending on a range of factors. These factors could include the time period for which you can invest before liquidating, the amount of money you can invest, the amount you require to secure the education fund, the level of risk you can take, and so on.  When it comes to building an education fund, here are the top 5 types of mutual funds you can choose from. 1. Large-cap mutual funds The defining characteristic of large-cap equity funds is the fact that these funds invest in the top 100 Indian companies that have the highest market value. Large-cap mutual funds can bring in impressive returns if you remain invested for a long period. If you are a person who wants to avoid taking very high risks with your investments and has decided on investing early for your child’s education, this is the way to go. The average returns rate has historically beaten that of Fixed Deposits and similar investment alternatives. 2. Mid-cap mutual funds Mid-cap funds invest in Indian companies that come in the next best 250 in terms of market value. These funds are for you if you are ready to take on a higher level of risk. Justifiably, the return rates also tend to get higher. One way to satiate the risk appetite of mid-cap equity funds is to let them season for at least 7-10 years. If your child is in primary or middle school, investing in such a scheme will generate a wholesome amount of wealth by the time they are ready to pursue a college education.   3. Equity-linked saving schemes  Among the various perks of investing in mutual funds is the tax deduction benefit. Equity Linked Saving Schemes are devoted to enabling investors to save taxes, as the name also indicates.  The only catch here is that it has a compulsory lock-in period of at least 3 years. The aim here is to keep you invested longer to counter the risk level. If you can spare that amount of time, then ELSS is definitely a go-to. An added benefit is the historically high level of returns.   4. Low-risk options  There is this whole myth surrounding mutual funds that they only come with a high-risk factor. On the contrary, a debt fund is also a kind of mutual fund that comes with low risk, so much so that it remains undisturbed by market fluctuations.  Debt funds are still a better option than Fixed Deposits because they can generate a higher percentage of returns. So, if you are not in favor of taking high risks, debt funds are a go-to.  5. Hybrid mutual funds  If you are confused about your investment options or even hesitant about risking too much, the answer to your problems is a hybrid mutual fund. This kind of fund is a mixture of equity as well as debt.  Hybrid mutual funds bring in the best of both worlds. They tend to generate good returns at low risk. FAQs What are the different types of mutual funds? Large-cap mutual funds Mid-cap mutual funds Equity-linked saving schemes Low-risk options Hybrid mutual funds Which type of MF is best? The best type of mutual fund is the Hybrid mutual fund. Which MF gives highest return? Equity linked mutual funds are considered the mutual funds with the highest returns. Conclusion There will be miscellaneous financial goals you will be required to set if you are a family person. One among these might be to straighten up the roadmap to your child’s academic and career aspirations. The first step is calculating your expected expenses with the help of an education cost calculator. The calculator will help you draw your investment map to fulfill your child's aspirations. The earlier you invest, the more prepared you will be to make critical decisions as the moment arrives. DisclaimerMutual funds are subject to market risks. The previous performance of a fund is no guarantee of future success. Please reach out to an expert to know more about the schemes before investing.
    5 ways to make getting an education loan easier for your child

    5 ways to make getting an education loan easier for your child

    Today's expanding world of opportunity benefits greatly from education loans. Your child has so many educational courses to choose from. A decent education is essential for your child's growth and development, and several institutions throughout the world provide student loans with low-interest rates to those who cannot rely on their savings. Banks and other financial organizations provide outstanding education loans with a reasonable interest rate and loan payback time.  An education from a reputable university is the first step to a prosperous profession. The cost of college expenses is rising quickly, though, and for parents who might not have enough money, taking out an education loan sounds like a perfect alternative for their child. In reality, the cost of higher education overseas and for Indian parents has increased enormously due to the rise of the dollar value versus the rupee. This pattern is also observed in TransUnion CIBIL data, where the average ticket size of a newly issued student loan increased by 48 percent from INR 5.73 lakhs in 2015 to INR 8.5 lakhs in 2018.  So, here are the five best ways if you are planning to get a student loan for your kid and help them to pursue higher studies easily. Choose the right course  Let your child choose a subject that fascinates them enough to make it their career. Don't allow your child to do what the majority of others are doing to deter them from following a passion of yours. For example, a student who is required to study engineering could not do well or even finish the course if they are least interested in the subject  However, if the student in question were interested in law, he would make a brilliant attorney and have a successful profession as well as a happier life. Therefore, a wise piece of advice for parents is to let their kids discover their passion by researching the course's requirements before making a choice. After completing their education, you should consider your child’s career possibilities and see if they can find employment to help you pay off the debt. Research about banks  Make sure to do your thorough research before choosing a bank. Avoid making rash or emotional decisions when applying for a loan. By conducting an extensive study, you can comprehend the varied interest rates, processing costs, terms, and conditions, etc. The amount you must repay varies depending on each bank's interest rate. You will need to spend and repay a certain amount of money for every point in the interest rate. Verify if your loan's interest rate is fixed or fluctuating. Making a choice between these rates is crucial since it significantly impacts how you intend to repay your loan and how much your EMI will be.  Borrow only what you need  If you want to take out an education loan for your child, resist the urge to request the utmost amount permitted. If your child has any financial awards, such as scholarships, you should constantly assess how much you have or how much you can afford to support your child’s education. Decide how much you want to borrow from the bank as an education loan after doing the math for the amount you have. As a parent, you must help your kids understand that every amount they take will have a specific interest rate levied on it. Hence, it is essential to borrow only the amount they can repay. https://www.youtube.com/watch?v=4gTQkdePOWM Educate your child about the loan  Whether you want your kid to continue their education in India or overseas, you should be aware of the specifics of their current coursework and any loans you have taken out. A VISA will allow your child to enter a foreign nation but does not give them access to everything. They could be questioned about their intentions and entry procedures at the airport. Your child should be ready to answer any queries about their course, organization, teachers, tuition costs, loan amounts, repayment terms, interest rates, etc. Your kid should also be aware of their personal information and information about their families, such as names, birthdates, residences, levels of education, and jobs.  Plan for repayment   Even though interest starts to accumulate from the first month, students may occasionally be given a moratorium or one-year grace period before they must begin making loan payments. One advantage of this time frame is that, even if your child can pay the EMI after this grace period, you can start repaying the EMIs early and assist your child in paying off the loan more quickly by doing so.  Early investment and saving can help reduce the financial burden that a high-quality education places on families, but some parents may not have the opportunity to do so since they are already dealing with admissions. An education loan could be the best option in such situations.  However, choosing the correct course, university, and financial institution may assist enhance the possibilities of simple loan payback, making the student debt-free sooner rather than later. This is in addition to creating a decent repayment plan. Consult an expert advisor to get the right plan for you  TALK TO AN EXPERT
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