This Hybrid Equity Savings Fund Has Given Close To 25% SIP Returns In 5 Years

Equity savings plans aim to maximise investment returns while also maintaining a smart risk-reward balance. The equity component of these funds helps to outpace inflation, while the debt and arbitrage components provide a cushion to reduce downside risk. These plans provide a consistent income and moderate capital growth. Here, we have given insights into one such fund that has offered good returns on long term SIPs. On 5-years sip, it has ticked 24.95% Returns.

L&T Equity Savings Fund - Direct Plan-Growth

This Hybrid Equity Savings Fund was launched on October 18, 2011, by the L&T Mutual Fund. This is an open-ended medium-sized fund of its category, investing in equity, arbitrage and debt. The fund is a moderate risky fund.

It has Rs 212.52 crore worth of Asset Under Management. Whereas, The Net Asset Value (NAV) declared on 12 May 2022 is Rs 24.058. It has 0.69% expense ratio, which is close but less than its category average expense ratio.

This fund aims to generate regular income by predominantly investing in arbitrage opportunities in the cash and derivatives segments of the equity markets, debt and money market instruments and to generate long-term capital appreciation through unhedged exposure to equity and equity-related instruments. NIFTY Equity Saving Index is the fund's benchmark.

Investment starts in this fund with a minimum lump-sum amount of Rs 5,000 and Rs 1,000 for additional payment. To begin investing via SIP, the minimum investment amount required is Rs 500. There is no lock-in period in this fund. However, it charges 0.5% for excess of 10% of the investment on redemption within 30 days. 

Absolute And Annualised Returns

Lump-Sum Investment Returns

Since its launch, it has delivered 8.63% average annual returns.

Tenure	Absolute Returns	Annualised Returns
1 Year	8.26%	8.26%
2 Year	45.21%	20.50%
3 Year	30.74%	9.32%
5 Year	43.48%	7.48%
Since Inception	117.16%	8.63%

SIP Returns

Tenure	Absolute Returns	Annualised Returns
1 Year	-0.37%	-0.68%
2 Year	10.95%	10.36%
3 Year	17.96%	11.03%
5 Year	24.95%	8.85%

Portfolio

The fund has 69.81% investment in equities of which 38.56% is in large-cap stocks, 13.23% is in mid-cap stocks, and 13.59% is in small-cap stocks. The fund has 27.36% investment in Debt of which 27.36% is in Government securities.

The fund's equity portion is primarily invested in the Financial, Consumer Staples, Metals & Mining, Technology, and Healthcare sectors. In comparison to other funds in the category, it has taken less exposure in the Financial, and Consumer Staples sectors. The debt portion of the fund has low credit quality indicating the quality of borrowers it has lent it to is not too great.

The fund's top holdings are in Government of India, Kotak Mahindra Bank Ltd., United Spirits Ltd., National Aluminium Co. Ltd., and Reliance Industries Ltd.

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.