True investors are the real winners in long term

By Ashish Kyal – As we all know stock markets are influenced by innumerable factors, many out of those are not even related to company’s earnings. Often these movements are random and difficult to forecast. However over time this apparent randomness slowly fades away and we can observes sustained movements in stock prices in line with the underlying company’s performance.

This reduces the risk of volatility which is faced by the swing traders and the medium term investors. At the end long term investors turn true winners beating other traders and the ever present danger of inflation. The below mentioned fund has till now performed in line with our expectation and looks to be at crucial support zone as of now. So if you are a prudent investor start to park your money from now and enjoy the benefits of compounding along with capital appreciation.

L&T India Value Growth Fund – weekly chart

LnT India Value Fund 20160121

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

L&T India Value Growth Fund is an open ended scheme launched in January 2009. This belongs to a Diversified category as the fund has exposure across Largecap, Midcap and Smallcap. This fund is ranked 1 in Diversified category by Crisil.

Portfolio Analysis: As per the sectoral holdings Banking/Finance have been most favored sector for this fund as it is contributing more than 15% to the entire portfolio followed by Manufacturing and Cement Sector. Top Holdings and Sector Allocation for this fund are shown below.

Top 5 Holdings

Top Holdings 20160121

 

 

 

 

Sector Allocation

Sector allocation 20160121

 

 

 

 

 

Returns as on 19th Jan, 2016

Performance 20160121

 

 

 

 

Risk Profile: This fund belongs to the high risk category given complete exposure only to equity. However, by way of SIP the risk can be reduced and also prudent asset allocation across different scheme including debt and balanced fund can provide optimum mix and reduce the risk. Also as we think long term trend for Nifty is on upside this fund offers good opportunity to ride the next wave of up move.

Investment Perspective: Small investments can be made in this scheme and once the correction is complete the exposure can be increased to capitalize on the next big move. Parking your fund by way of SIP offers good option for now.

 

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