Rating : ★ ★ ★ ☆ ☆

L&T Credit Risk Fund Direct Plan Dividend Payout

Debt

  

Credit Risk Fund

NAV

10.7358 +0.0256

(as on 22 Sep, 2020)

RETURNS

2.84 %

Fund Type

Open Ended

Investment Plan

Dividend Payout

Investment Plan

1%

Benchmark

CRISIL Short Term Bond Fund TR INR

Asset Size

269.51 Cr.

(As of 31 Aug, 2020)

Risk

Moderate

Objective

To generate regular returns and capital appreciation by investing predominantly in AA and below rated corporate bonds, debt, government securities and money market instruments.There is no assurance that the investment objective of the scheme will be realized.

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Fund manager

Shriram Ramanathan

Exit load

1 %

(If redeemed within 365 days)

Minimum sip

₹1000

Minimum investment

₹10000

Top Holdings

This fund is been allocated in various sectors including some of the prominent ones that are widely accepted and are creating a value of trust.

Company

Assets

Vizag General Cargo Berth Private Limited

37.96%

National Bank For Agriculture and Rural Development

9.78%

5.77% GOI 2030

9.08%

Tata Power Renewable Energy Limited

7.69%

Sector Allocation

About the Scheme Type

Credit Risk Funds need to have at least 65% of their investmentin lower rated securities such as those having AA-, A+, A-, BBB, etc. The maturity period of these papers is usually 1 – 3 years, unlike long maturity bonds. The interest rates offered by such companies is higher and earning scope arises when their ratings go up, offering a benefit of capital gains. They, at times,pose as an attractive investment option as they have the potential to give 2 – 3% higher returns than risk-free papers.

Ratings

This fund is rated 3 stars by Morning Star Ratings.

★ ★ ★ ☆ ☆

Overview of L&T Investment Management Ltd

L&T Investment Management Ltd We, at L&T Mutual Fund, follow a disciplined approach to investment and risk management for delivering superior long-term risk-adjusted performance. L&T Mutual Fund has a robust monitoring and risk management process that ensures checks and balances at every stage. Here’s a step-by-step process of our investment philosophy.

  • Generation of ideas: L&T Mutual Fund’s analysts and fund managers are actively on the hunt for identifying new ideas. For equity investing, the search spectrum includes investment team meetings, meetings with a company's management, suppliers, industry experts, regulators, external research, competitors and reports. And in the case of fixed income funds, investment ideas are born out of team strategy meetings, in-depth interaction with issuers and market participants, macro analysis and internal and external research ideas.
  • Evaluation of companies: Filters such as liquidity, market capitalisation ownership and other parameters help identify opportunities, which are then thoroughly evaluated for profitability, business attractiveness, competitive positioning, balance sheet strength, management track record, corporate governance and valuations for equities. Thorough credit or issuer analysis and macro analysis underpins the evaluation framework for identifying issuers and instruments for fixed income portfolios.
  • Manufacturing or Monitoring of portfolios: Among all the ideas that are generated and evaluated, the fund manager picks those that have the most potential. Portfolios are monitored continuously to ensure that they are positioned to meet their investment objectives and are within the set risk framework. A fund manager may decide to exit a holding on achieving the price target or for other reasons such as weakened business prospects or credit, or if better investment opportunities wait in the wings.