Dalal Street Investment Journal – July 20, 2019

142 DALAL STREET INVESTMENT JOURNAL I JULY 22 - AUG 4, 2019 DSIJ. in^

MF page - 14

MF Select

L&T Infrastructure Fund - Direct Plan (Growth)

Equity: Sectoral/Thematic

1% if the units redeemed or switched out are above 10% of the units

purchased or switched in within 1 year from the date of allotment.

18.75%

Soumendra Nath Lahiri

Scheme Category

Exit Load

`1866.14Cr 16.14 1.14%

NIFTY Infrastructure TRI

AUM (Cr): 30 June, 2019 NAV () 11 July, 2019

Expense Ratio (%)

30 June, 2019 Benchmark

*Expected Return In Next One Year

Fund Manager

Reason for recommendation

The maiden budget presented by FM Nirmala Sitharaman last
fortnight stressed upon the pace infrastructure development in
India. This is reflected in the government decision to impose road
and infra cess on petrol/diesel, which will help the government to
mop up funds to invest in infrastructure projects. Infra companies
are the logical beneficiary of higher spending in infrastructure. We
had witnessed earlier in the year 2014 that infra funds were the
best performing funds. Therefore, it is the right time to take
exposure to infrastructure funds.L&T infrastructure (LTI) fund is
one such fund that an investor can think of. One of the factors that
favour this fund is its investment in infrastructure companies.
Many infra funds tend to invest in any company that is in anyway
related to infrastructure. Therefore, they even invest in banking
companies as they finance infra companies. Hence, such funds are
more like diversified funds, which are investing in infra proxies
and hence their returns will not imitate the pure infra funds. In
the case of (LTI), it invests in the companies that are directly
connected to the infrastructure theme. If we check the portfolio of
LTI, we find that it has the largest holding in the largest infra
company in India. It holds 9.65 per cent of the total assets in

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Larsen & Toubro. Out of total assets, the fund has invested more

than 60 per cent in companies from the construction and

engineering sector. Besides sectors, if we look at the cap-wise

allocation of the fund, it is well-poised for better returns, going

ahead. It has equally distributed the fund's corpus in small-cap,

mid-cap and large-cap stocks. Going ahead, as mid-cap and

small-cap companies have underperformed in the last one and

half year, they are likely to perform in the next one year.

Monthly Returns

TOP 10 Holdings

COMPANY NAME % TO NET ASSETS

Larsen & Toubro 9.65

Bharti Airtel 6.20

The Ramco Cements 5.88

Grasim Industries 5.67

Reliance Industries 5.49

AIA Engineering 3.77

Bharat Electronics 3.71

Century Textiles & Industries 2.99

Engineers India 2.80

Orient Refractories 2.74