L&T Mutual Fund
L&T Mutual Fund

L&T Resurgent India Corporate Bond Fund

L&T Resurgent India Corporate Bond Fund - Fund Facts
Fund objective
To seek to generate income by investing primarily in debt and money market securities of fundamentally strong corporates/companies in growth sectors which are closely associated with the resurgence of domestic economy with a flexible to follow more conservative investment approach during economic downturns.
Inception date
February 2, 2015
Fund Managers
Mr. Shriram Ramanathan
Benchmark index
CRISIL Composite Bond Fund Index
SIP availability
Yes
Options
Growth and Dividend options available. The Dividend option offers payout or reinvestment facilities.
Minimum initial investment
Lump sum: Rs. 5000; additional purchase: Rs. 1,000 and thereafter in multiples of Re.1 SIP: Rs. 6,000 (minimum installment amount of Rs. 1,000 each, minimum 6 instalments)
Entry Load
NIL
Exit Load

On or before 1 year from the date of allotment or Purchase applying First in First Out basis - 2% of applicable NAV

After 1 year but on or before 2 years from the date of allotment or Purchase applying First in First Out basis - 1% of applicable NAV

After 2 years - NIL

Annual Recurring Expenses (As on 18th February, 2017)
1.60%
Annual Recurring Expenses for Direct Plan (As on 18th February, 2017)
0.85%
Note:
The above ratio includes 20 bps of additional expenses.
Apart from the above-mentioned expenses, additional expenses of up to 0.30% of daily net assets of the scheme, in compliance with the conditions prescribed and service tax on investment management fees are also being charged.
L&T Resurgent India Corporate Bond Fund - Overview

Typically, when interest rates fall, the longer-term bond funds deliver better growth. Conversely, when interest rates are stable or rising, high-yielding medium or short-term debt funds perform better. However, for an investor, moving between funds to try and match the interest rate movement could be not only tricky but also tax-inefficient.

But, what if you could get the best of all worlds?

The one-of-a-kind, L&T Resurgent India Corporate Bond Fund aims to invest in high-quality long-tenure bonds when interest rates fall and shift to the potentially high-yielding medium-term instruments when interest rates stabilise.

Same could result in potentially higher post-tax returns in the hands of the investor!

L&T Resurgent India Corporate Bond Fund - Key Benefits

Take advantage of changing trends in interest rates

The one-of-a-kind Fund will typically invest in high-quality long-tenure bonds when interest rates are likely to fall and shift to potentially high-yielding

Tax efficient returns

You could on your own invest in longer-term bond funds when the interest rate falls and move to high-yielding medium or short-term debt funds at other times. However, frequently moving between different investment instruments could result in short term capital gains tax, which would significantly reduce your returns.

On the other hand, if you stay for over 3 years in this Fund, your investment would be in a single product though the underlying instruments in the Fund could keep changing in response to shifts in interest rates. This means that short term capital gain taxes would no longer apply thereby providing you the potential to earn better post tax returns.

L&T Resurgent India Corporate Bond Fund - Features
Investment Style Details
Scheme Classification
An open - ended income scheme.
Investment Objective
To seek to generate income by investing primarily in debt and money market securities of fundamentally strong corporates/companies in growth sectors which are closely associated with the resurgence of domestic economy with a flexible to follow more conservative investment approach during economic downturns.
This product is suitable for investors who are seeking*
  • Generation of income over medium to long term
  • Investment primarily in debt and money market securities of fundamentally strong corporate/ companies in growth sectors which are closely associated with the resurgence of domestic economy
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Normal Asset Allocation
Instruments Indicative Allocation (% of net assets) Risk Profile
  Maximum Minimum  
Corporate debt instruments* including securitized debt 100% 80% Low to Medium
Money market instruments 20% 0% Low to Medium

*Corporate debt instruments would include all debt securities issued by entities such as banks, companies, Public Sector Undertakings, Municipal
Corporations, body corporates, etc.

Terms of issue
Minimum purchase amount 5,000
Minimum additional purchase amount 1,000
Minimum redemption amount/units Rs. 1,000/100 Units
Scheme Information Document, Key Information Memorandum and Application Forms / Transaction Slips available at the ISCs / distributors.

Statutory
L&T Mutual Fund has been established as a trust under the Indian Trust Act, 1882 by L&T Finance Holdings 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 lnvestment Management Limited as the Investment Manager.
Loads
Entry
NIL
Exit

On or before 1 year from the date of allotment or Purchase applying First in First Out basis - 2% of applicable NAV

After 1 year but on or before 2 years from the date of allotment or Purchase applying First in First Out basis - 1% of applicable NAV

After 2 years - NIL

General Services

Investors can contact any of the ISCs at its toll-free number "1800 2000 400". NAVs will be calculated and published in two daily newspapers on all Business Days. Purchase/Redemption on all Business Days after the Conversion/Maturity Date.

Risk factors

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

L&T Resurgent India Corporate Bond Fund - How to Invest
To invest online

Click here to invest online instantly*.


In case you require any more information on investing in the L&T Mutual Fund, please call our toll-free Investor Line on 1800 2000 400 between 9am to 6pm on any business day.
To invest offline

Click here to download the KIM and Application form.
Or
Contact your Relationship Manager at your bank, your adviser or your distributor for an application form.
L&T Resurgent India Corporate Bond Fund - Downloads