L&T Mutual Fund has filed papers for a focused equity fund with market regulator SEBI. According to SEBI norms, a focused equity fund must maintain a portfolio of no more than 30 stocks. These funds follow a high conviction strategy focusing on a few stocks – with its potential for great risk and great reward. Fund houses which didn’t have schemes in particular SEBI categories are moving to launch such schemes. L&T MF’s launch of this scheme is part of this drive.
L&T Focused Equity Fund will be required to invest 65-100% of its assets in equities and 0-35% in debt and money market instruments. A 0-10% can be invested in units of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InVITs).
The draft Scheme Information Document says that the fund will favour companies that offer the best value relative to their respective long-term growth prospects, returns on capital and management quality.
Soumendra Nath Lahiri who is the Chief Investment Officer at L&T Mutual Fund will be the fund manager of this fund. Vihang Naik who also manages L&T Midcap fund will be the co-fund manager.
Options: Growth, Dividend Payout, Dividend Reinvestment
Benchmark: Nifty 500 TRI
Exit load: 1% for redemptions within 1 year of investment
Minimum Investment: Rs 5000. For subsequent purchases, Rs 1000.