CEO Speak

The Indian equity markets have been going through corrections and some volatility throughout this year. However, we believe that it has provided a reasonable opportunity to buy good quality stocks at favourable valuations. This is one of the key reasons why L&T Mutual Fund had launched the NFO of L&T Focussed Equity Fund in October 2018 which takes a concentrated, high-conviction approach, emphasizing on companies with strong management and good businesses which are available at reasonable valuations. We strongly believe that retail investors should stay invested in mutual funds and not panic in the uncertain markets. And also these are the times when one can opt for investing into the above mentioned funds like ours.

We at L&T Mutual Fund believe that retail investors must look at equity MF space as a long term investment option, especially through the SIP route, which has proven time and again as one of the best tools for wealth creation and helps the investor achieve long term financial goals. Hence, short term volatility in the markets should not distract an investor from his long term objectives. India is in a festive mood around this time of the year. People are cleaning up their homes and offices and a festive spirit is sparkling where ever we look.

So if you are thinking how do we assess a good quality stock in this volatile market, or how much do we track such a portfolio of stocks because we would want to ideally atleast beat inflation and get a healthy return, it may be wise for you to hence, invest through a Mutual Fund. It’s a lot of specialised research which is done by professionals and moreover mutual funds are managed actively by the fund managers. After all, concepts like financial goal setting, risk taking ability and asset allocation are the fundamental stepping stones for prudent investments. And if the basics are clear, then uncertain periods like the current phase in the market will not bother an investor whose basic financial goal for investment into an equity mutual fund was, for eg., to build a retirement corpus. If your investment horizon is over ten years and if you are investing through SIP (systematic investment plan) mode, then short term ups or downs should not cause worry in you.

Look at your asset allocation, start a new SIP, begin a new journey into the equity funds. Our belief has always been long term investments. Trying to time the market is not a good idea. SIP helps average out market highs and lows by buying more units of a fund when markets are low and fewer units when markets are high. This is what we term as rupee cost averaging and hence, the price per unit evens out to help you benefit in the long run.

Wishing you a Very Happy Festive Season on behalf of the entire team of L&T Mutual Fund.

Disclaimer – This 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. This document provides general information on performance; financial planning and/or comparisons made are only for illustration purposes. The data/information used/disclosed in this document is only for information purposes and not guaranteeing / indicating any returns. This material provides general information and comparisons made (if any) are only for illustration purposes. 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. Recipient should also understand that any reference to the indices/ sectors/ securities/ schemes etc. in the document is only for illustration purpose and should not be considered as recommendation(s) from the author or L&T Investment Management Limited, the asset management company of L&T Mutual Fund or any of its associates. Recipient of this information should understand that statements made herein regarding future prospects may not be realized or achieved. Neither this document nor the units of L&T Mutual Fund have been registered in any jurisdiction except India. 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.

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