Aditya Birla Sun Life Midcap Fund Vs SBI Magnum Mid Cap Fund both the schemes belong to the mid-cap category of Equity Funds. mid cap funds in simple terms are the Mutual Fund schemes that invest their money in the stocks of companies having a market capitalization between INR 500 – INR 10,000 Crores. Mid-cap schemes are considered to be a good long-term investment option. These companies have good growth potentials and if performed well, they can be the future large-cap companies. Though Aditya Birla Sun Life Midcap Fund Vs SBI Magnum Mid Cap Fund belong to the same category, yet; they differ on account of a number of differences. So, let’s understand the differences between them through this article.
Aditya Birla Sun Life (ABSL) Midcap Fund is a part of ABSL Mutual Fund and was incepted on October 02, 2002. This open-ended mid-cap fund can be an apt choice for individuals seeking long-term capital growth by Investing in mid-cap stocks. The scheme aims to provide investors a chance to invest in mid-cap companies that can be potential leaders of tomorrow. The highlights of ABSL Midcap Fund are long-term capital growth and investment in stocks with higher growth potentials. Some of the top holdings of the funds as on 30.06.2018 are Clearing Corporation of India Ltd, RBL Bank Ltd, Mahindra CIE Automotive Ltd, The Federal Bank Ltd, Gujarat State Petronet Ltd, etc. Mr. Jayesh Gandhi is the sole fund manager of Aditya Birla Sun Life Midcap Fund.
SBI Mid Cap Fund is offered by SBI Mutual Fund under Mid Cap category. It is an open-ended scheme which was launched on March 29, 2005. The scheme’s objective is to attain capital growth in long-term by investing in equity and equity-related instruments of Mid Cap companies. The scheme uses Nifty MidSmallcap 400 Index to construct its portfolio. Some of the holdings of SBI Magnum Mid Cap Fund’s portfolio (as on 31/05/2018) include Cholamandalam Investment and Finance Company Limited, Dixon Technologies (India) Limited, Sheela Foam Limited, Federal Bank Limited, etc. The fund is suitable for investors looking for capital appreciation for long-term tenure. The scheme follows bottom-up approach of stock selection. SBI Magnum Mid Cap Fund is managed by Ms Sohini Andani.
The various parameters that differentiate Aditya Birla Sun Life Midcap Fund and SBI Magnum Mid Cap Fund are classified into four sections, namely, basics section, performance section, yearly performance section, and other details section. These sections are explained as follows.
Basics section is the first section in the comparison of the schemes that includes parameters such as Fincash Rating, scheme category, and current NAV. To begin with the Fincash Rating, it can be said that both the scheme are rates as 3-Star Fund. The comparison of scheme category reveals that both the schemes belong to the same category of Equity Mid & small cap. In case of NAV, both the schemes differ drastically. As on 20th July 2018, the NAV of ABSL Midcap Fund was INR 293.93, while of SBI Magnum Mid Cap Fund it was around INR 71.1595. The summary comparison of the basics section is listed below as follows.
Parameters Basics NAV Net Assets (Cr) Launch Date Rating Category Sub Cat. Category Rank Risk Expense Ratio Sharpe Ratio Information Ratio Alpha Ratio Benchmark Exit Load Aditya Birla Sun Life Midcap Fund
₹203.4 ↑ 2.08 (1.03 %) ₹1,879 on 30 Apr 20 3 Oct 02 ☆☆☆ Equity Mid Cap 16 Moderately High 2.3 -0.73 -0.24 -7.11 Not Available 0-365 Days (1%),365 Days and above(NIL) SBI Magnum Mid Cap Fund
₹56.7106 ↑ 0.70 (1.25 %) ₹2,943 on 30 Apr 20 29 Mar 05 ☆☆☆ Equity Mid Cap 28 Moderately High 2.33 -0.44 -0.76 -1.19 Not Available 0-1 Years (1%),1 Years and above(NIL)
Being the second section, it compares the CAGR or Compounded Annual Growth Rate returns of both the schemes. These CAGR returns are compared at different time intervals such as 3 Year Return, 5 Year Return, and Return since Inception. On the basis of performance, it can be said that, in most of the instances, Aditya Birla Sun Life Midcap Fund leads the race. The table given below summarizes the comparison of the performance section.
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This section compares the absolute returns generated by both the schemes for a particular year. The comparison of yearly performance section, it shows that in some instance ABSL Midcap Fund has performed well, while in some case SBI Magnum Midcap Fund has performed well. The comparison summary of the yearly performance section is tabulated as follows.
The parameters forming part of this section include AUM, minimum SIP and lump sum investment, and exit load. Both the schemes differ on the basis of AUM. As on 30th June, 2018, the AUM of ABSL Midcap Fund was around INR 2,222 crores, and the AUM of SBI Magnum Midcap Fund was INR 3,521 crores. The minimum SIP and lump sum of both the scheme varies. The minimum SIP and lump sum of ABSL Midcap Fund is INR 1,000 (monthly) and INR 1,000, respectively. While in the case of SBI Magnum Midcap Fund is INR 500 as a monthly SIP and INR 5,000 as the minimum lump sum amount. The exit load of both the scheme is same. The summary comparison of the other details section is tabulated as follows.
Thus, from the above-mentioned pointers, it can be said that both the schemes differ on numerous parameters in spite of belonging to the same category. As a result, individuals should be careful before investing in any of the schemes. Individuals should analyse the schemes thoroughly and check whether it matches their investment objective or not. If required, they can even take the financial opinion of a financial advisor. This will help individuals to attain their objectives on time and ensure that their investment is safe.
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