L&T Mutual Fund - Tax Saver Fund

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1 L&T Tax Saver Fund (An Open E nded Equity Linked Tax Savings Scheme) Jan 2011

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Index 1. Macro Economic Scenario and Equity Market round-up 2. L&T Tax Saver Fund 3. About us 2

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2050 Rank Country Name 2000 GDP 2010 GDP 2020 GDP 2030 GDP 2040 GDP 2050 GDP 1 China 1078 2998 7070 14312 26439 44453 2 United States 9825 13271 16415 20833 27229 35165 3 India 469 929 2104 4935 12367 27803 4 Japan 4176 4601 5221 5810 6039 6673 5 Brazil 762 668 1333 2189 3740 6074 6 Russia 391 847 1741 2980 4467 5870 7 United Kingdom 1437 1876 2285 2649 3201 3782 8 Germany 1875 2212 2524 2697 3147 3603 9 France 1311 1622 1930 2267 2668 3148 10 Italy 1078 1337 1553 1671 1788 2061 In Billions $ US In next 10 year GDP is expected to more than double and could become 5 times in next 20 years. As per the Graph above By 2020 India would be among G7 countries and by 2040 it could be among top 3 in terms of GDP. Over the next few decades, India should be able to sustain a growth rate of 5% per year, but with accelerated economic reforms it has the potential to grow at 7-8%. Source : Goldman Sachs Macro Economic Scenario: Estimated GDP forecast 3

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Percentage change in projected population between 2000 and 2050. SOURCE: Population Reference Bureau, 2001 World Population Data Sheet, Washington, DC: PRB, 2001. Countries Projected population growth India 57.6% Indonesia 47.88% United States 45.31% Brazil 43.94% Canada 18.05% France 9.99% China 7.52% United Kingdom 6.87% Russia -11.57% Germany -14.48% Italy -20.39% Japan -20.95% 51% of the Indian population is below 25 years of age . By 2015, the net addition to the productive population (25-44 years) could be 90m, 1/3rdof USA’s current population or five new Australias. Macro Economic Scenario: Improved demographics 4

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India has the potential to become the dominant destination for foreign investment. Industry and Services driven by growing Consumption and Investments Domestic 1. Positive demographics - growing consumer class 2. Rising penetration rates 3. Rising per capita GDP International 1. Low cost manufacturing, strong engineering, language and technology skills 2. IT/BPO and Pharma now well established; emerging manufacturing base Focus on agriculture could provide further impetus to growth. Traditional Indian entrepreneurial spirit could potentially benefit from this fast paced and prolonged growth Overall, this presents a brighter outlook for the equities in future. Some Macro Economic facts: Summing up 5

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In last 30 years market has grown by over 165 times (CAGR of 18.55%). With Earnings growth estimated between 10% to 15 % the market has the potential to deliver over 9% and 17% CAGR in the next 5 years. CAGR – Compounded Annualized Growth Rate Source: Internal. The above is just an illustration and should not be relied for taking investment decisions . Past Performance may or may not be sustained in future. Please consult your Financial advisor, before Investing in Markets SENSEX Levels Based on Various Earning Growth PE Next 5 years Next 10 years Multiple Earnings Growth @ 10% Earnings Growth @ 15% Earnings Growth @ 10% Earnings Growth @ 15% 15 21,400 26,731 34,471 53,765 16 22,831 28,513 36,769 57,350 17 24,258 30,295 39,067 60,934 18 25,684 32,077 41,365 64,519 19 27,111 33,859 46,817 73,022 20 28,538 35,641 45,961 71,687 SENSEX CAGR (%) PE 5 years 10 years Multiple Earnings Growth @ 10% Earnings Growth @ 15% Earnings Growth @ 10% Earnings Growth @ 15% 15 5.9% 12.4% 21.8% 45.2% 16 7.7% 14.6% 24.6% 49.5% 17 9.4% 16.7% 27.4% 53.9% 18 11.1% 18.9% 30.1% 58.2% 19 12.9% 21.0% 32.9% 62.5% 20 14.6% 23.2% 35.7% 66.9% Equity market in the next 5-10 years ….. 6

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Index 1. Marco Economic Scenario and Equity Market round-up 2. L&T Tax Saver Fund 3. About us 7

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8 Investment philosophy The Fund aims at delivering better risk adjusted returns based on superior research based stock selection and active portfolio management. Asset allocation is across market cap with higher allocation towards large & mid cap companies. While higher allocation to large & mid caps is intended to ensure risk adjusted returns, some allocation to quality small cap stocks is intended to generate relatively higher returns. Even while following growth strategy, intention is to buy stocks with growth at reasonable price (GARP) so as to capture maximum upside potential. Relative valuation with respect to sector and / or market plays an important role in stock selection. L&T Tax Saver Fund (An Open Ended Equity Linked Savings Scheme)

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9 L&T Tax Saver Fund Performance as on 31 s Dec 2010 (CAGR): Cumulative Option Inception date :18-Nov-05. Past performance may or may not be sustained in future. Returns in CAGR for 1 year and above. L&T Tax Saver Fund (An Open Ended Equity Linked Savings Scheme)

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Top 10 holdings 31 st Dec. 2010 Reliance Industries Ltd 5.83% Oil and Natural Gas Corporation Ltd 4.24% HDFC Bank Ltd 3.12% ICICI Bank Ltd 3.1% Punjab National Bank 3.02% State Bank of India 2.99% ITC Ltd. 2.87% Yes Bank Ltd 2.84% Siemens Ltd 2.77% Tata Power Co.Ltd . 2.35% Top 10 sectors 31 st Dec. 2010 Banks 21.66% Auto 9.98% Petroleum Products 8.43% Pharmaceuticals 8.28% Industrial Capital Goods 7.27% Software 6.43% Oil 5.38% Power 4.15% Gas 3.99% Industrial Products 3.76% 10 L&T Tax Saver Fund (An Open Ended Equity Linked Savings Scheme) Portfolio Holding

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Index 1. Marco Economic Scenario and equity market round-up 2. L&T Tax Saver Fund 3. About us 11

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12 L&T Finance took over DBS Chola Mutual Fund in February 2010. The entire management team was retained The team includes an 11 member investment team and total staff strength of over 314 members. Chola Mutual fund was launched in 1996 and has been in existence for 14 years before the takeover. The AMC is head quartered in Mumbai since 2000 The Fund got rechristened as L&T Mutual Fund on Feb 16, 2010 The Fund House has a suite of 22 products with some funds with a track record built over last 14 years. (L&T Triple Ace Fund) Legacy of L&T Mutual Fund

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Over 96 Man Years of Investment Management experience Employee asset base of over 64% Post Graduates of which many are MBAs, CAs, CS & CFAs Suite of Mutual Fund schemes for different investor requirements Houses the first ever launched AAA rated debt fund –LTMF Triple Ace Fund and Multi Cap Equity Fund in the industry. Awards over the years for performance of schemes Led by Sanjay Sinha , CEO – one of the respected Fund Managers in the country 13 Legacy of L&T Mutual Fund Past Performance may or may not be sustained in the future & is no guarantee of the future results

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Anant Deep Katare, Fund Manager - Equity B.E (Electrical), PGDBA, C.F.A Over 11 years of experience. Prior Assignments- UTI Securities Limited as Asst Vice President – Research, SBI Capital Markets as Senior member with Research Group, Khandwala Securities Limited as Research Analyst & Derivatives strategist Fund Manager 14

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“Provide long term gains to investors through strong research based stock selection and active portfolio management” 15 Investment Philosophy

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16 Investment Process 16

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17 Research Flow Research Flow 17

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18 Analysts propose action on a stock/sector Investment team evaluates the proposal based on risk return score for individual stock/sector for its inclusion/exclusion. Fund manager decides on stock weight age (overweight/underweight/neutral) in the portfolio Investment committee meets on fortnightly basis to review the sector/stock performance vis a vis the markets and decides on future course of action Decision Making Process Decision Making Process 18

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19 Nature and Investment objective . L&T Tax saver Fund: Fund (an Open Ended Equity Linked Tax Savings Scheme): To provide long term capital appreciation by investing predominantly in equity and equity related instruments and also enabling investors to get income tax rebate as per the prevailing Tax Laws and subject to applicable condition. Entry Load and Exit Load – Nil. Terms of issue : The units can be redeemed only after expiry of lock-in period of 3 years from the date of allotment. Disclaimer: This document have been prepared by L&T Investment Management Limited (L&T IML) for information purposes only and should not be construed as an offer or solicitation of an offer for purchase of any securities or any of the funds of L&T Investment Management Ltd. The document is for general information only and does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this information. Investments in mutual funds and secondary markets inherently involve risks and recipient should consult their legal, tax and financial advisors before investing. Recipient of this document should understand that statements made herein regarding future prospects may not be realized. He/ She should also understand that any reference to the securities/ sectors in the document is only for illustration purpose. The views expressed in the document are personal views of the author and do not necessarily reflect the views of L&T Investment Management Ltd or any of its associates. Neither this document nor the units of L&T Mutual Fund have been registered in any jurisdiction. The distribution of this document in certain jurisdictions may be restricted or totally prohibited and accordingly, persons who come into possession of this document are required to inform themselves about, and to observe, any such restrictions. Risk Factors: All investments in mutual funds and securities are subject to market risks and the NAV of the Schemes of the Fund may go up or down depending upon the factors and forces affecting the securities market. Investment in mutual fund units involves investment risks such as trading volumes, settlement risk, liquidity risk, default risk including the possible loss of principal. Past performance of the Sponsor/AMC/Mutual Fund does not guarantee future performance of the Schemes. The Sponsor is not responsible or liable for any loss resulting from the operation of the Schemes beyond the initial contribution of Rs. 1 lakh made by it towards setting up the Fund. The names of the Schemes/Plans/Mutual Fund do not in any manner indicate either the quality of the Schemes or its future prospects and returns; and are only the names of the Schemes/Plans. There can be no assurance that the objectives of the Schemes/Plans/Mutual Fund will be achieved. Schemes specific risk factors: Investment in the Schemes shall be subject to various risks including but not limited to risk associated with: Investment in Equity and Equity related Instruments & Fixed Income Securities such as Performance Risk, Credit Risk, Reinvestment Risk, Interest Rate Risk, Investment in Derivatives, Securitised Debt, etc. Please read the Scheme Information Document and Statement of Additional Information carefully before investing. Statutory Details: L&T Mutual Fund has been established as a trust under the Indian Trust Act, 1882 by L&T Finance Limited, Sponsor/ Settlor (liability restricted to the seed corpus of Rs. 1 lakh ) with L&T Mutual Fund Trustee Limited as the Trustee Company and L&T Investment Management Limited as the Investment Manager. Funds which are benchmarked to S&P CNX Nifty are not sponsored, endorsed, sold or promoted by India Index Services and Products Ltd. (IISL). IISL is not responsible for any errors or omissions or the results obtained from the use of such index and in no event shall IISL have any liability to any party for any damages of whatsoever nature (including lost profits) resulted to such party due to purchase or sale or otherwise of such products benchmarked to such index. L&T Finance Holdings Limited (indirect Holding Company of L&T Investment Management Limited) is proposing, subject to market conditions and other considerations, to make a public issue of securities and has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The DRHP is available on the website of SEBI at www.sebi.gov.in and the respective websites of the Book Running Lead Managers at www.jmfinancial.in , http://www.online.citibank.co.in/rhtm/citigroupglobalscreen1.htm , http://www.hsbc.co.in/1/2/corporate/equities-global-investment-banking , http://www.barclayswealth.com/india-offerdocuments.htm , http://www.credit-suisse.com/in/ipo/ and www.equirus.com . Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see ‘Risk Factors’ in the aforementioned DRHP. Disclaimers

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20 Ahmedabad : 9898029991, Allahabad: 9918500388, Amritsar: 9855721024 Bengaluru : 080-42497000/32952142, Baroda: 8128997153, Bhopal: 0755-2552452-53/9893654246, Bhubaneshwar : 9937062565 Chandigarh: 0172 – 3068051 / 9878406940, Chennai: 044-66881190 / 98400 96828/ 9003072863, Cochin: 0484- 6533130/ 9895168160, Coimbatore: 0422 4504047- 48 / 9994997599, Durgapur: 9932241935, Goa: 0832 2422720/ 9923285799, Gorakhpur: 8090482796 Hyderabad: 040 64557001/9849523638, Hubli : 0836 -4264140/ 9663383659 Indore: 0731 4286032 / 9826012555, Jaipur : 0141 4043108/4043101/9950852103, Jalandhar : 9872838208, Jammu: 9419845915, Jamshedpur: 9334289963, Kanpur:98392-96100, Kolhapur: 0231 6614834-5/9923539066, Kolkata: 033- 66262709/10/ 98315 00225, Lucknow : 0522 4003245 / 3052460 / 098381 19887, Ludhiana: 0161 5029019 / 9878114700, Madurai: 9865966013, Mangalore: 0824-2443609/9663027893 Mumbai: 022-61366600 / 6115 5503, Nagpur: 0712 6621511 / 9372695617, Nashik : 0253 6611791 / 6619211/ 9960025000, New Delhi: 011 49533301-02, Pune : 020-32912911/ 25510468, Raipur: 0771 4224107 / 9926808555, Rourkela: 9437648485, Siliguri : 0353 2545474/ 9800202292, Varanasi: 9839165055 Vijaywada : 9676785656, Vishakhapatnam: 0891 6620401/9676970777, Trichy : 9952142228 , Trivandrum: 9605601122, Rajkot : 0281 -2480131 Branches

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Toll free : 1800-209-6565 SMS LTMF to 567678 www.LNTMF.com Contact Us @ 21

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