L&T Triple Ace Bond Direct-Growth scheme's ability to deliver returns consistently is in-

line with most funds of its category. The fund's credit profile is very high indicating it has
lent to borrowers whose quality is excellent. Most funds in this category lend to better
borrowers and hence the risk of default in this fund is higher than the category. The
fund's top holdings are in GOI, Indian Railway Finance Corporation. Ltd., National
Highways Authority of India Ltd., Indian Oil Corporation Ltd., National Thermal Power
Corp. Ltd.

Rationale behind this investment

 Investment Strategies of L&T Triple Ace Bond Direct-Growth

The composition of the portfolio is designed in a manner to achieve the maximum

return, while minimizing the overall risk. So as to establish a trade-off between risk
and return in investments; The return on a security usually increases with an increase
in risk. Given the trade-off, the priority of the Scheme is to minimise the risk, even
while trying to achieve the maximum returns. Since the securities with the highest
credit rating should have the least 17 Scheme Information Document risk, the
investments are made predominantly in corporate securities (bonds, debentures &
commercial papers) with a credit rating of “AAA” ascribed by CRISIL or an equivalent
credit rating assigned by other agencies.
The Scheme may also invest in privately placed debt of such AAA rated companies.
The Scheme would invest mainly in the rated corporate securities. However, the
absence of the desirable depth in the secondary market for corporate securities may
restrict the pace of investments through the secondary market.
Therefore, the funds of the Scheme will invest in money market instruments viz.
government securities, call money, commercial paper etc. The Scheme would invest
in bonds/ debentures or any other fixed income securities at least to an extent of
80% of the corpus. The balance will be invested in money market instruments of high
quality. The overall portfolio structuring would aim at controlling risk at moderate
level.

 Investment Norms of L&T Triple Ace Bond Direct-Growth

The cumulative gross exposure through Debt and Derivative positions doesn’t exceed
100% of net assets of the Scheme. However, following will not be considered while
calculating the cumulative gross exposure: a) Exposure due to hedging positions and
b) Exposure in Cash or cash equivalents with residual maturity of less than 91 days.

 Fundamental Attributes of L&T Triple Ace Bond Direct-Growth

Having a really strong fundamental Attributes where the main objective is Income
and also displays an Investment Pattern: The tentative equity/debt/gilt/money
market portfolio break-up with minimum and maximum asset allocation, while
retaining the option to alter the asset allocation for a short term period on defensive
considerations.
Even the Underwriting Activity includes the Scheme that may undertake underwriting
activities in order to augment its income. The Fund will get necessary permissions
from SEBI and other concerned authorities before undertaking such activity. The total
underwriting obligations of the Scheme(s) at any time shall not exceed the total value
of the net assets under the Scheme(s).