Is L&T Equity Fund a Good Choice in Multicap Category?

Read the article to know why L&T Equity Fund is one of the best investment options available in the multi cap category. Multi-cap funds have been gaining a huge popularity, all because of the stability these schemes showed during the continued volatility faced by the equity market throughout 2018. While other equity schemes gave negative returns in the past few months, the schemes from this category have been maintaining numbers in positive. Now, most of the investors are seeking schemes from this category to create a balance in their portfolio, so that if the market shows further downfall in future, the negative returns can be balanced. In this article, we will discuss a great scheme from this category which you can choose to invest for an optimal long-term growth and create a balance in your portfolio, and that scheme is L&T Equity Fund. So, let’s see what this scheme holds, but before that have a look at some of its basic details. A Consistent Performer in Volatility Now, as we discussed above that the top multi-cap schemes showed a great stability during the market volatility in 2018. Let’s see how L&T Equity Fund has performed during this time, with the help of its past returns. Here, it can be seen that in the past 1 year, the scheme has provided a return of 0.22% when the category average is -2.30%, which shows that it in the top layer of the multi-cap category and also have a good management team. As for the long-term, the performance has been really great, and the scheme has beaten the benchmark in past 5 years’ and 10 years’ annualized returns. Now, due to the category change and recent volatility, these returns have gone down a bit, but a much better growth is expected in the next few years. Current Portfolio Allocation Being a multi-cap category scheme, L&T Equity Fund (G) invests across the market cap and at present has 70.82% investment in large caps, 23.16% in mid caps, and 6.02% investment in small cap companies. The allocation in large-caps has been increased to provide stability to the returns, as in the past 1 year, mid cap and small cap stocks have gone through a heavy correction. Now, let’s have a look at the current portfolio allocation of the scheme to have an idea about future growth. As of now, it has investments in a total of 63 stocks picked across 13 sectors. As can be seen that the L&T Equity scheme is following a diversified style of investing, with a major concentration in the finance sector. The other top sectors include construction, technology, FMCG, and services. So, the high investment in finance, construction, technology, and FMCG sector is really good as they all are showing great future growth possibilities, and in addition to these, it also has a considerable allocation in the healthcare sector, which is expected to show a great growth in the near future. The Risk Factor As L&T Equity Fund invests in all the market caps, it has the capability to perform even when stocks from one market cap are not working well. This makes the risk associated with the fund moderately high. Now as for the technical analysis, the Standard Deviation and Beta of the fund is lower than benchmark as well as category, which means that during volatility in the market, the fluctuations in return is lower than both, making it an optimal choice in the multi cap category. By looking at all the above details, it can be seen how good of a choice L&T Equity Fund Growth Plan is. Now, if you are a new investor, then this is the scheme through which you can enter the MF industry as it will give you a chance to analyze the performance of all the market caps. And, if you are an existing MF investor, then you can add the scheme to your existing portfolio to create a balance and can add an extra level of stability.