L&T Value Fund

Equity Funds Monthly Update

September 2015

2

1. Market Round Up

2. Products

1. L&T India Large Cap Fund

2. L&T Equity Fund

3. L&T India Special Situations Fund

4. L&T Midcap Fund

5. L&T Infrastructure Fund

6. L&T India Value Fund

7. L&T Business Cycles Fund

3. Equity Investment Process

Contents

For product labeling please refer to the last slide.

Market Round Up

4

Title 1

Economy Country 1 Month (%

change)

3 Month (%

change)

6 Month (%

change)

1 Year (%

change)

YTD (%

change)

EM-Asia China -12.49% -30.48% -3.15% 44.60% -0.89%

DM-Asia Japan -8.23% -8.13% 0.49% 22.47% 8.25%

DM Germany -9.28% -10.11% -10.02% 8.33% 4.63%

DM France -8.45% -7.09% -6.03% 6.21% 8.90%

DM Sweden -7.09% -8.75% -11.23% 8.08% 2.49%

DM New Zealand -4.47% -3.23% -3.78% 8.29% 1.58%

DM Italy -6.78% -6.61% -1.77% 7.29% 15.41%

DM Switzerland -6.40% -4.47% -2.11% 1.91% -1.77%

EM-Asia India -6.58% -5.48% -9.87% 0.21% -3.76%

EM Phillippines -5.98% -6.35% -8.17% 0.68% -1.82%

DM USA -6.57% -8.23% -8.85% -3.34% -7.27%

DM Spain -8.24% -8.55% -8.22% -4.38% -0.20%

EM Mexico -2.30% -2.20% -1.06% -4.18% 1.34%

DM Australia -8.64% -9.87% -12.17% -7.45% -3.77%

DM-Asia Hong Kong -12.04% -20.98% -12.70% -12.41% -8.20%

DM UK -6.70% -10.54% -10.06% -8.38% -4.85%

EM-Asia South Korea -4.37% -8.20% -2.23% -6.14% 1.35%

EM-Asia Thailand -4.01% -7.60% -12.89% -11.48% -7.70%

DM-Asia Singapore -8.78% -13.88% -14.15% -12.19% -13.19%

DM Canada -4.21% -7.69% -9.03% -11.31% -5.28%

EM-Asia Indonesia -6.10% -13.55% -17.26% -12.21% -13.72%

EM-Asia Taiwan -5.66% -15.73% -15.04% -13.37% -12.17%

EM-Asia Malaysia -6.41% -7.71% -11.45% -13.58% -8.43%

EM Brazil -8.33% -11.63% -9.61% -23.92% -6.76%

Global Markets - Performance

Source: Bloomberg. Data as on 31st August 2015. DM – Developed Markets, EM – Emerging Markets

Returns are denominated in Local Currency

5

Indian Markets - Performance

Source: Bloomberg. Data as on 31st August 2015. Sectoral performances as represented by BSE indices.

Category Index 1 Month (%

change)

3 Month (%

change)

6 Month (%

change)

1 Year (%

change)

YTD (%

change)

Sectoral Healthcare 5.36% 6.28% 15.91% 35.09% 22.51%

Broad Market Midcap -4.78% 0.17% 0.69% 21.66% 5.92%

Sectoral Consumer Durable -0.34% 3.58% 4.18% 20.34% 14.21%

Sectoral Capital Goods -10.68% -3.88% -9.40% 8.29% 4.58%

Sectoral Auto -6.50% -6.37% -9.63% 3.31% -4.11%

Sectoral Bank -8.66% -8.71% -10.16% 9.07% -8.49%

Broad Market Smallcap -7.27% -2.74% -4.54% 9.11% -1.66%

Sectoral FMCG -4.25% -0.76% -8.00% 6.44% 1.09%

Broad Market BSE 500 -6.21% -4.42% -7.62% 4.36% -1.73%

Broad Market BSE 200 -6.14% -4.65% -7.87% 4.17% -1.74%

Sectoral Teck -1.97% -0.42% -4.59% 8.98% 4.36%

Sectoral IT 0.80% 2.30% -5.91% 9.68% 5.21%

Broad Market BSE 100 -6.15% -5.02% -9.22% 1.30% -2.97%

Broad Market Nifty -6.58% -5.48% -9.87% 0.21% -3.76%

Broad Market Sensex -6.51% -5.55% -10.05% -1.33% -4.42%

Sectoral Power -11.15% -11.37% -20.09% -10.16% -12.33%

Sectoral Oil & Gas -10.34% -7.94% -7.54% -20.63% -10.28%

Sectoral Realty -9.13% -18.02% -31.43% -27.02% -18.93%

Sectoral Metal -14.10% -23.46% -29.70% -39.23% -30.75%

• FIIs were net sellers in Aug-15, as they sold equities to the tune of $2.6bn

• Domestic mutual funds remained net buyer this month

6

Portfolio Flows - Trend

Source: SEBI, NSDL

Products

L&T India Large Cap Fund (An open-ended equity growth scheme)


9

L&T India Large Cap Fund

• A diversified equity strategy with focus on investing in large cap companies

• Invests predominantly in top 100 companies by market capitalization

• Strong long-term performance track record

• Inception date: 23-Oct-07

• Fund Manager: Venugopal Manghat & Abhijeet Dakshikar (for foreign securities)

• Benchmark: S&P BSE 100

• Fund Size : 368 crores (QAAuM, June 2015)


• Invests predominantly in large cap companies

• Focus on fundamentals: Quality and scalability of business, Management and Valuation

• Looking to own companies with strong balance sheets, attractive return ratios and strong

cash flows. Companies that are expected to grow relatively faster than market

• Individual stock weight is a function of fundamentals, valuation, market sentiment and

conviction

• Stable portfolio with relatively limited churn

10

Investment approach and portfolio construction

Market Cap >$ 10 bn (approx)

30-35 companies

Market cap between $ 2-10 bn

(approx)

100-105 companies

Market cap: $ 1-2 bn

(approx)

85-90 companies

Ultra

large cap

Large Cap

Aspirants

80-100% of

portfolio

0-20% of

portfolio

Portfolio of

40-60

stocks

Market capitalization cut offs used to define ultra large cap / large cap / aspirants are internal.

11

L&T India Large Cap Fund - Portfolio information

Top 10 sector positions Top active stock positions

Top 10 holdings

Source: Bloomberg, ICRA MFIE, Internal. All data as at 31.8.2015. Market capitalization cut offs used to define Large /

Mid / Small cap stocks are internal. Top 100 stocks as sorted on market capitalization basis, are defined as largecap,

next 100 stocks as midcap and beyond top 200 as smallcap stocks

Market capitalization break-up

Large cap: 84.83%

Small and Midcap: 12.71%

Debt / Cash: 2.46%

Sector Weight

Banks 21.16%

Software 10.26%

Pharmaceuticals 9.72%

Auto 7.41%

Construction Project 6.61%

Finance 6.48%

Cement 6.31%

Petroleum Products 4.91%

Auto Ancillaries 4.34%

Consumer Non Durables 4.18%

Company Fund Bm Active

Shree Cement Ltd. 2.93% 0.00% 2.93%

Hindustan Petroleum Corporation Ltd. 3.22% 0.42% 2.80%

Bharat Electronics Ltd. 2.35% 0.00% 2.35%

Maruti Suzuki India Ltd. 3.76% 1.67% 2.09%

Eicher Motors Ltd. 2.66% 0.58% 2.08%

Amara Raja Batteries Ltd. 1.93% 0.00% 1.93%

Motherson Sumi Systems Ltd. 1.71% 0.00% 1.71%

Sadbhav Engineering Ltd. 1.71% 0.00% 1.71%

Lupin Ltd. 3.03% 1.39% 1.64%

Glenmark Pharmaceuticals Ltd. 2.08% 0.51% 1.57%

Company % of net assets

Infosys Limited 6.50%

HDFC Bank Limited 6.17%

Larsen & Toubro Limited 3.94%

Maruti Suzuki India Limited 3.76%

ICICI Bank Limited 3.68%

Axis Bank Limited 3.37%

Hindustan Petroleum Corporation Limited 3.22%

HDFC 3.19%

Lupin Limited 3.03%

Shree Cements Limited 2.93%

L&T India Large Cap Fund – Attribution Analysis

• The scheme is having marginally underweight to neutral position in Banking sector. Scheme is

currently overweight in Federal Bank and Indusind Bank. Among Financials, scheme is having

overweight position in Power Finance Corp and MCX India

• The scheme continues to be underweight in IT sector. Infosys ltd performed well for the scheme

this month

• The scheme continues to be overweight in Pharmaceuticals sector. Position in Lupin, Divi’s lab

and Glenmark Pharma contributed positively to performance

• The scheme continues to be overweight in Cement sector. Companies like Shree Cement and

Ultratech cement are the major bets within the sector for the scheme

• The scheme continues to be overweight in Auto Ancillaries sector. Amara Raja Batteries

contributed to performance this month

12 Source: Bloomberg

L&T Equity Fund (An open-ended equity growth scheme)


14

L&T Equity Fund

• A diversified equity strategy with a flexible ‘go-anywhere’ approach

• Ability to harness opportunities across the market spectrum - No market cap, sector or style

bias

• Fundamentals driven stock picking approach


• Suitable as a core holding

• Inception date: 16-May-05

• Fund Manager: S N Lahiri & Abhijeet Dakshikar (for foreign securities)




• Aims to capitalize on investment opportunities across the market spectrum

• Focus on fundamentals: Quality and scalability of business, Management and Valuation

• Looking to own companies with strong balance sheets, attractive return ratios and strong

cash flows

• Individual stock weight is a function of fundamentals, valuation, market sentiment and

conviction

• Bottom-up stock picking aided by internal research

15


16

L&T Equity Fund - Portfolio information

Top 10 sector positions Top 10 active stock positions

Top 10 holdings Market capitalization break-up

Large cap: 75.44%


Debt / Cash: 1.92%

Sector Weight

Banks 22.83%

Software 10.08%




Auto 6.04%


Cement 5.20%

Transportation 4.92%

Finance 3.54%


Gateway Distriparks Ltd. 2.51% 0.00% 2.51%

Kotak Mahindra Bank Ltd. 3.91% 1.74% 2.17%

Divis Laboratories Ltd. 2.29% 0.40% 1.89%

Techno Electric & Engg Co Ltd. 1.65% 0.00% 1.65%

WABCO India Ltd. 1.61% 0.00% 1.61%

Aditya Birla Nuvo Ltd. 1.89% 0.29% 1.60%

Shree Cement Ltd. 1.80% 0.25% 1.55%

Kajaria Ceramics Ltd. 1.44% 0.00% 1.44%

LIC Housing Finance Ltd. 1.79% 0.35% 1.44%







Kotak Mahindra Bank Limited 3.91%


Tata Consultancy Services Limited 3.04%


Gateway Distriparks Limited 2.51%

IndusInd Bank Limited 2.41%




L&T Equity Fund – Attribution Analysis

• The scheme continues to be overweight in Banking sector. Bank of Baroda contributed to relative

performance this month

• The scheme continues to be overweight on Auto Ancillaries sector. Wabco India and Exide

Industries contributed positively to performance this month

• The scheme continues to be underweight in Consumer Staples space. This contributed to relative

performance as the sector declined during the month

• The scheme continues to be overweight in Cement stocks, through positions in Shree Cement,

Ramco Cement, Ambuja Cements and Ultratech Cement

• The scheme is underweight in Pharmaceuticals sector. Overweight position in Lupin and Divi’s

Lab contributed to performance this month


L&T India Special Situations Fund (An open-ended equity growth scheme)


19

L&T India Special Situations Fund

• A diversified equity strategy with focus on identifying companies going through “Special

Situations”

• No market cap or sector bias. Adds style diversification to investor’s portfolio.

• Provides access to those situations in the stock market that have the potential to deliver

superior returns if spotted early, analyzed carefully & held onto for the right amount of time


• Inception date: 22-May-06

• Fund Manager: S N Lahiri & Abhijeet Dakshikar (for foreign securities)




• No capitalization or sector bias

• Diversified portfolio built around high conviction stocks in ‘Special Situations’

• Can take significant overweight positions

• Bottom-up stock picking aided by internal research

20


Special Situations

Turnaround

New Business Streams

Under-appreciated

growth

Asset plays

Corporate actions

Out of market favour

Special Situations are unusual circumstances

that companies sometimes find themselves in –

either in terms of their business or their stock

price or both, these could include:

Turnarounds,

New business streams,

Underappreciated growth,

Asset plays,

Corporate actions,

Companies whose stocks have fallen out of

market favour, etc.

21

L&T India Special Situations Fund - Portfolio information



Large cap: 54.14%


Debt / Cash: 4.50%

Sector Weight

Banks 18.10%

Software 14.57%



Finance 6.20%


Pesticides 4.98%

Cement 4.80%

Industrial Products 3.74%



Bayer Cropscience Ltd. 3.45% 0.11% 3.34%

Sundaram Finance Ltd. 3.31% 0.00% 3.31%

Jyothy Laboratories Ltd. 3.18% 0.00% 3.18%

HCL Technologies Ltd. 4.30% 1.36% 2.94%

Federal Bank Ltd. 2.56% 0.27% 2.29%

Kalpataru Power Transmission Ltd. 2.12% 0.00% 2.12%

State Bank Of Bikaner & Jaipur 1.95% 0.00% 1.95%

Mindtree Ltd. 2.05% 0.26% 1.79%

ACC Ltd. 2.00% 0.33% 1.67%

Blue Dart Express Ltd. 1.66% 0.00% 1.66%



HCL Technologies Limited 4.30%


Bayer Cropscience Limited 3.45%


Sundaram Finance Limited 3.31%

Jyothy Laboratories Limited 3.18%


The Federal Bank Limited 2.56%





L&T India Special Situations Fund – Attribution Analysis

• The scheme is marginally underweight in the Banking sector. Scheme is overweight in Federal

Bank, Axis Bank and Kotak Mahindra Bank. Among Financials, scheme is overweight in Shriram

Transport Finance and MCX India

• The scheme continues to be overweight in the Cement sector. JK Cement, ACC Cement and

Shree Cement are the overweight bets in the portfolio

• The scheme continues to be underweight in Consumer Staples space. Position in Jyothy Labs


• The scheme has overweight position in Pesticides and Agrochemicals sector with exposure to

Bayer Cropscience, UPL and Sharda Cropchem

• The scheme is underweight in Pharmaceuticals sector. Exposure to Divi’s Lab and Lupin

performed well for the fund this month


L&T Midcap Fund (An open-ended equity scheme)


24

L&T Midcap Fund

• A midcap focused strategy aimed at delivering higher alpha in the long run

• Opportunity to exploit and benefit from anomalies existing in less researched segment of the

market

• Helps in style diversification

• Suitable for relatively aggressive investors looking for long-term wealth creation. Minimum

investment horizon of 3-5 years

• Inception date: 09-Aug-04

• Fund Manager: S N Lahiri

• Benchmark: CNX Midcap index



• Portfolio well diversified across sectors and stocks

• Bottom-up investment approach

• Looks to invest in fundamentally strong companies with good growth prospects

• Focus on valuations – aims to own stocks with high margin of safety to reduce overall portfolio risk

• Aims at broad diversification of portfolio, with a view to manage liquidity at the aggregate portfolio level

25


Highest Constituent

of the CNX Midcap

Index

Lowest Constituent

of the CNX Midcap

Index

80% - 100% of the

total net assets

Approx 50-70

Stocks

Predominantly invests in companies whose market capitalization falls between the highest and the

lowest constituent of the CNX Midcap Index

26

L&T Midcap Fund - Portfolio information



Large cap: 18.81%


Debt / Cash: 3.55%

Sector Weight



Industrial Capital Goods 7.02%

Textile Products 6.26%


Banks 6.17%

Finance 6.05%


Software 6.03%

Pesticides 5.67%


K P R Mill Ltd. 3.2% 0.0% 3.2%

Sundaram Finance Ltd. 3.0% 0.0% 3.0%

Techno Electric & Engg Co Ltd. 3.0% 0.0% 3.0%

Jyothy Laboratories Ltd. 2.5% 0.0% 2.5%

Federal Bank Ltd. 2.5% 0.0% 2.5%

Pfizer Ltd. 2.2% 0.0% 2.2%

Bayer Cropscience Ltd. 2.0% 0.0% 2.0%

Centum Electronics Ltd 1.9% 0.0% 1.9%


Hitachi Home & Life Solutions Ltd 1.9% 0.0% 1.9%


K.P.R. Mill Limited 3.15%

Sundaram Finance Limited 3.03%

Techno Electric & Engineering Company Limited 3.00%

Britannia Industries Limited 2.63%

Jyothy Laboratories Limited 2.53%

The Federal Bank Limited 2.48%

Emami Limited 2.40%

Procter & Gamble Hygiene and Health Care

Limited 2.26%

Pfizer Limited 2.24%

Ashok Leyland Limited 2.23%




L&T Midcap Fund – Attribution Analysis

• The scheme continues to be overweight in Consumer Durable stocks. Stocks like Tube

Investments performed well this month

• The scheme is currently overweight in Banking sector. The scheme is overweight in Federal bank

and Karur Vysya Bank currently

• The scheme has overweight position in Industrials Capital Goods sector with major positions in

Alstom India and Centum Electronics

• The scheme continues to be overweight in Cement stocks. Birla Corp performed well for the fund

• The scheme is currently underweight in Consumer Staples space. Jyothy Laboratories aided

relative performance this month


L&T Infrastructure Fund (An open-ended equity scheme)


29

L&T Infrastructure Fund

• A thematic fund which predominantly invests in companies which are likely to benefit from

India’s infrastructure growth

• Preference for companies with scalable businesses, proven execution track record and

strong balance sheets

• Focus on companies that offer best value relative to their long-term growth prospects

• No market capitalization or style bias

• Inception date: 27-Sep-07

• Fund Manager: S N Lahiri

• Benchmark: CNX Nifty index



• Provides opportunity to benefit from participation in India’s structural infrastructure

growth

• Potential to deliver higher returns, although with relatively higher risk

• A product with potential to generate significant alpha, especially during economic

recovery / high growth phase

• A product that could be used to complement core mutual fund portfolio holdings, with

a minimum investment horizon of 3-5 years

30

Product Positioning

31

Portfolio information

Top 10 sector positions Top 10 holdings

Sector Weight




Cement 9.72%


Power 5.62%

Telecom - Services 4.72%

Finance 4.09%

Construction 3.69%

Non - Ferrous Metals 3.20%



Techno Electric & Engineering Company Ltd 4.45%

Power Grid Corporation of India Limited 4.20%

Grasim Industries Limited 3.50%

Idea Cellular Limited 3.49%

VRL Logistics Limited 3.30%

Gateway Distriparks Limited 3.08%

Centum Electronics Limited 2.70%

IDFC Limited 2.69%

Snowman Logistics Limited 2.68%

Source: Bloomberg, ICRA MFIE, Internal. All data as at 31.8.2015

L&T India Value Fund (An open-ended equity growth scheme)


33

L&T India Value Fund

• Diversified equity fund with strong value bias that aims to deliver long term superior risk-

adjusted returns

• Focus on identifying valuation anomalies versus the economic potential of the business over

the medium term

• Aims to minimize portfolio risk by investing in quality companies, monitoring corporate

fundamentals closely

• No sector / market cap bias

• Adds style diversification to portfolio

• Fund Manager: Venugopal Manghat & Abhijeet Dakshikar (for foreign securities)




What is Value Investing?

A strategy of investing in stocks that trade at less than their intrinsic value

Price to Earnings Enterprise Value / Sales

Price to Book ROE

Dividend Yield ROCE

Enterprise Value / EBITDA Cash Flows

PEG FCF / Sales

Business models / Fundamentals, Management, Market Sentiments

• The fund looks to invest in fundamentally strong companies that the fund manager believes

are trading at less than their assessed values thus offering higher upside potential

• This approach not only helps in identifying undervalued stocks but also factor-in the risk

elements while picking stocks

35

L&T India Value Fund - Portfolio information



Large cap: 37.48%


Debt / Cash: 9.06%

Sector Weight

Banks 13.28%

Construction 7.06%


Software 6.74%

Finance 5.11%

Textile Products 4.79%



Textiles - Cotton 4.12%

Cement 3.73%



Himatsingka Seide Ltd. 2.17% 0.00% 2.17%

TVS Srichakra Ltd. 2.05% 0.00% 2.05%

UPL Ltd. 2.44% 0.40% 2.04%

Indo Count Industries Ltd. 1.94% 0.00% 1.94%

ITD Cementation India Ltd. 1.81% 0.00% 1.81%

The Ramco Cements Ltd. 1.91% 0.11% 1.80%

FDC Ltd. 1.67% 0.00% 1.67%

VRL Logistics Ltd. 1.67% 0.00% 1.67%

Ahluwalia Contracts Ltd. 1.50% 0.00% 1.50%





UPL Limited 2.44%


Himatsingka Seide Limited 2.17%

Reliance Industries Limited 2.11%

TVS Srichakra Limited 2.05%

State Bank of India 1.95%

Indo Count Industries Limited 1.94%




L&T India Value Fund – Attribution Analysis

• The scheme is currently underweight in Banking sector. Position in Bank of Baroda contributed to

performance

• Overweight position in Auto Ancillaries stocks like Wabco and Gabriel India contributed positively

to performance this month

• The scheme has overweight position in Textile sector. Himatsingka Seide and Indo Count


• The scheme continues to be overweight in Cement stocks. JK Lakshmi Cement aided relative

performance this month

• The scheme has positions in Construction sector through stock like National Buildings

Construction and KNR Constructions


L&T Business Cycles Fund (An open-ended equity scheme)


38

L&T Business Cycles Fund

• An open - ended equity scheme with business cycle approach to investing

• Focus on riding business cycles by strategically changing allocation between various

sectors and stocks at different stages of business cycles in the economy

• Portfolio positioning driven by medium term business cycle trends and not short term

market movement

• Focus on identifying companies that offer best value relative to their respective long-

term growth prospects, returns on capital and management quality

• Fund Manager: Venugopal Manghat and Abhijeet Dakshikar (foreign securities)




Business Cycle approach

Business cycle patterns have historically tended to repeat themselves over time

Changes in some of the key indicators provide relatively reliable guide in identifying different phases of

an economic cycle

Cyclical factors linked with the state of the economy largely drive the performance of equity sectors over

the intermediate term

Business cycle approach focuses on riding business cycles by

strategically changing allocation between various sectors and

stocks at different stages of business cycle in the economy

Lower inflexion point

Higher inflexion point

Eco

no

mic

Act

ivit

y

Timeline

39

Phase 1 Phase 2 Phase 3 Phase 4

Trough to

recovery

Recovery to

expansion

Expansion

to Peak

Peak to

Contraction

Product positioning

• A product that is suitable for investors looking to benefit from strategic positioning of

portfolio based on stage of business cycle

• Potential to deliver higher alpha over long term.

• A product which could potentially outperform in both rising as well as falling market

• Suitable for investors looking to benefit from economic recovery over the next few

years

• Adds style diversification to investor’s portfolio

40

41

L&T Business Cycles Fund - Portfolio information



Large cap: 52.26%


Debt / Cash: 4.72%

Sector Weight

Banks 23.89%


Construction 7.78%

Finance 7.68%

Auto 7.52%




Cement 5.49%

Consumer Durables 4.27%


Ashok Leyland Ltd. 2.27% 0.34% 1.93%

Maruti Suzuki India Ltd. 3.27% 1.45% 1.82%

Beml Ltd. 1.78% 0.00% 1.78%

KNR Constructions Ltd. 1.77% 0.00% 1.77%


Sadbhav Engineering Ltd. 1.73% 0.00% 1.73%

National Buildings Construction

Corporation Ltd. 1.61% 0.00% 1.61%

Ashoka Buildcon Ltd 1.60% 0.00% 1.60%


ITD Cementation India Ltd. 1.56% 0.00% 1.56%




Housing Development Finance Corporation Ltd 3.57%




IndusInd Bank Limited 2.38%

Ashok Leyland Limited 2.27%


State Bank of India 1.97%




L&T Business Cycles Fund – Attribution Analysis

• The scheme is currently overweight in Banking sector. Positions in Bank of Baroda contributed

positively to performance

• The scheme continues to have overweight position in Industrials Capital Goods sector. BEML and

Crompton Greaves are major bets within the sector

• The scheme continues to be overweight on Industrial Products sector. Cummins India contributed

to performance this month

• The scheme is overweight in Consumer Durable stocks. IFB Industries contributed to relative

performance during the month

• The scheme is overweight on Construction sector. Exposure to stocks like ITD Cementation

helped in relative outperformance this month


Equity Investment Process

Generation

of Ideas

Manufacturing

and monitoring

of Portfolios

• External Research:

• Broker research

• Industry research

• In house fundamental

research:

• Around 350 stocks

under coverage

• Filters / screens

• Business cycles

• Meet industry

experts,

competitors,

suppliers, regulators

Identify potential ideas

• Quality

• Profitability and attractiveness of business

• Competitive positioning

• Stage in business cycle

• People

• Management track record and management incentives

• Corporate governance

• Valuations

• P/E, EV / EBITDA

• good businesses at reasonable valuations or companies

on cheap valuations where fundamentals are improving

When buying a business, know the business

• Discussion in

Investment Committee

• Investment mandate –

scheme objectives,

stock and sector

diversification

• Regulatory limits

• Risk philosophy –

concentration, liquidity,

market cap size

• Tracking error

Implementation

Valuations

Evaluation

of

companies

Equity Investment Process – G.E.M.

44

45

Disclaimer

The views expressed herein are those of the fund managers and should not be construed as an advice. This

presentation 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 presentation should understand that statements made here

in regarding future prospects may not be realized. He / She should also understand that any reference to the

stocks / securities/ sectors/ indices in the document is only for illustration purpose and should not be construed

as advice to buy those securities. The portfolio information is as of August 31, 2015 and is subject to change at

the discretion of the fund manager(s).Neither this presentation nor the units of L&T Mutual Fund have been

registered in any jurisdiction except India. The distribution of this presentation in certain jurisdictions may be

restricted or totally prohibited and accordingly, persons who come into possession of this presentation are

required to inform themselves about, and to observe, any such restrictions.

Risk Factors: Mutual Fund investments are subject to market risks, read all scheme related documents

carefully.

CL02113

Product Labeling

46

Documents

L&T Value Fund