L&T Mutual Fund has launched its three-year close ended equity fund called L&T Emerging Opportunities Fund – Series 1. The new fund offer (NFO) will remain open from January 29 to February 12, 2018.
The fund aims to generate long term capital appreciation from a diversified portfolio of small cap companies that have the potential to grow their revenue and profits at a higher rate as compared to broader market.
Kailash Kulkarni, Chief Executive Officer, L&T Investment Management, said, “With the launch of L&T Emerging Opportunities Fund, we are providing investors with an opportunity to benefit from investing in the undervalued segment of the market while adding style diversification to their portfolios. Although one may believe that some small cap stocks are trading at expensive valuations, there are still a large number of stocks available at reasonable valuations. We believe emerging businesses built around a scalable opportunity with strong leadership, good governance and balance sheet strength can reward investors.”
The benchmark of L&T Emerging Opportunities Fund will be S&P BSE Small Cap Index. The fund will invest at least 65% of net assets in equity and equity related securities of small cap companies. It can invest up to 35% of the net assets in equity and equity related companies other than small cap and up to 20% of net assets in debt and money market instruments.
