Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications

Sunday 21 July 2013

L&T Global Real Assets Fund

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

Real assets – assets that are tangible – have traditionally been preferred by investors for a few reasons: they provide the comfort of physical holding, and have a track record of beating inflation by providing some protection to the investor's wealth during tough times.

In the Indian context, assets such as property and gold are the typical real assets that one can own as a retail investor.

But what if you had a fund that would invest in stocks that dealt with real assets such as oil wells, mines, infrastructure, utilities, and land and building, to name a few, while being much more liquid than property or gold? That is what L&T Global Real Assets seeks to do through a global fund – Fidelity Global Real Asset Securities Fund.

True to its name, L&T Global Real Assets has delivered inflation-beating returns of 14 per cent annually in the last three years; the rupee depreciation also bolstering returns.

This return is not only higher than its own benchmark – an MSCI blended index, but amongst the highest in the Indian equity category (including theme funds), next only to Magnum Emerging Businesses. The Sensex delivered just 2.5 per cent annually over this period.

Fund Features

L&T Global Real Assets is a fund-of-fund. It simply invests in the foreign fund – Fidelity Global Real Asset Securities Fund. Being invested in international equity, it does not enjoy capital gains tax benefits similar to locally-invested equity funds. It is treated like a debt fund for tax purposes alone.

L&T Global Real Assets, earlier called Fidelity Global Real Assets, was part of the Fidelity family. Unlike other Fidelity funds that saw fund management change as a result of the L&T takeover, this fund did not see any disruption in the ultimate fund management.

In other words, L&T continues to invest in the Fidelity global fund, which is managed by Amit Lodha. Nevertheless, the fund did see some outflow as investors had the option to exit during the L&T takeover.

Portfolio & Performance


L&T Global Real Assets has been a stellar performer ever since it was launched in 2010. It has a high risk-adjusted return since its launch and has a rolling-one year return of 15 per cent in the last three years.

The timing of the launch was perfect for the fund as the continuing global turmoil ensured that 'real assets' across the globe firmed up in value.

This fund has beaten funds with other international themes such as energy, agriculture or real estate, over a three-year period, although it also invests in somewhat similar sectors.

A good 42% of its stocks are in the U.S. and the rest are spread across U.K., Canada, Japan and other nations.

In the last one year, the fund's return of 16.5 per cent has marginally lagged some of the U.S.-focused funds and Asian funds, the latter performing better after a poor year earlier. The fund's high exposure to the energy space also pulled down performance a bit, given the stabilizing crude prices.


Despite high exposure to the U.S., the companies it invests in derive their revenues globally . Exposures to stocks of companies such as Exxon Mobil, Anadarko Petroleum, or Halliburton serve as good examples.

Suitability

At present, we do not have a call on L&T Global Real Assets. But investors looking to diversify their holdings in international stocks and currencies can continue to hold the fund; albeit limiting their exposure to 5-10 per cent of their total holdings.

The fund provides exposure to stocks that are not available in the Indian space. For instance, opportunities to invest in a Real Estate Investment Trust or an aircraft manufacturing company may be hard to come by locally.

The size of the companies held and their varied geographic presence lends further diversification to your portfolio. Also, given its more diversified theme, it is unlikely to be entirely hurt by commodity cycles.

On the flip side, the fund hiked its maximum expense ratio to 2.5 per cent after it moved away from Fidelity's hands. As a result, although the fund-of-fund per se has a low expense ratio, the total ratio (including that of the primary fund) may be close to 2.5 per cent.

That said, it is worth noting that the returns you see on the NAV are post the deduction of the expense ratio, suggesting that it has delivered well, costs notwithstanding.

An active profit-booking strategy would be required if you hold this fund. Setting triggers, based on your expected returns may be a good automated option.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

No comments:

Post a Comment

Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications

Popular Posts