The outlook on interest rates remains 'stable to lower'. We may not see a drastic reduction in rates, but that is primarily because of rigidities in our financial system.
L&FS Mutual Fund has maintained a low-profile since its inception in 1999. The fund is one of the smallest in the mutual fund industry in terms of assets under management with a corpus of Rs 250 crones spread over four fund schemes.
The Mumbai-based fund house is now spreading its wings in other parts of the country. Sponsor IL&FS is now pumping in Rs 15 crore to help the fund house expand distribution reach, widen product range and increase awareness about the fund. Meanwhile, efforts are on to strengthen its marketing and investment team.
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On the performance side, all its four funds have managed to keep pace with the peer group average. The equity offering IL&FS Growth & Value Fund has posted a return of 34.31 per cent compared with a 31.26 per cent decline in the BSE Sensex and a category average of 34.29 per cent.
The medium-term debt fund IL&FS Bond Fund has posted a return of 15.22 per cent, marginally higher than the category average. The IL&FS e-COM Fund, a technology sector-dedicated fund, like many other tech funds, has been a victim of poor sectoral performance.
The fund has marginally outperformed the BSE IT index, yet for initial investors it has resulted in an sharp depreciation with the net asset value languishing at Rs 2.20. Chief executive officer Vibhav Kapoor spoke to N Mahalakshmi about the fund