L&T Investment Management Ltd. is the asset management company of L&T Mutual Fund. The company is a wholly-owned subsidiary of L&T Finance Holdings Ltd., which is a publicly-listed NBFC.
The AMC is set up as a trust under the Indian Trust Act, 1882 and registered with SEBI under the registration number MF/035/97/9. It abides by its proprietary investment process – GEM:
Fund managers and analysts generate new ideas depending on the fund. For example, internal and external research, macro-economic analysis, through research of the market, and team meetings all contribute to such ideas in case of fixed income funds. On the other hand, external research, meetings with industry experts, suppliers, regulators, and investment team meetings generate ideas in case of equity funds.
Opportunities are identified through numerous parameters like market capitalisation ownership, liquidity, etc. These filters are then thoroughly evaluated. It checks corporate governance, management track record, balance sheet strength, competitive positioning, business attractiveness, profitability, and valuations for equities.
Fund managers continually monitor portfolios to ensure they are reaching their financial objectives and within the determined risk levels. They may close the fund after meeting the targeted price, or when there are better investment options available, or if its performance has deteriorated. Fund managers will only pick the ideas, among the ones generated, that have the most potential.
L&T Investment Management Ltd. has an asset under management worth Rs. 75591.56 as of 31 March 2022