Table of Contents
Aditya Birla Sun Life Small Cap Fund and Franklin India Smaller Companies Fund both the schemes belong to the same category of small-cap fund. In simple terms, Small cap funds are the schemes that invest in companies whose Market capitalization is less than INR 500 Crores. These companies form the bottom of the pyramid when companies are classified on the Basis of market capitalization. Small-cap companies are generally start-ups or are in their nascent stages of development. Small-cap companies are considered to have good growth potential. In many situations, small-cap funds have performed better as compared to companies belonging to other market caps. Though both schemes belong to the same category, yet; they differ on account of various parameters. So, let’s analyze the differences between both the schemes through this article.
Aditya Birla Sun Life Small Cap Fund (earlier known as Aditya Birla Sun Life Small & Midcap Fund) is an open-ended small-cap fund offered by ABSL Mutual Fund. This scheme was launched on May 30, 2007, and its objective is to attain Capital growth in the long-term by Investing stocks of companies falling under the small-cap category. As on March 31, 2018, some of the top holdings of ABSL Small Cap Fund included Johnson Controls, Cyient Limited, CG Power & Industrial Solutions Limited, and Tata Metaliks Limited. Birla Sun Life Small & Midcap Fund is solely managed by Mr. Jayesh Gandhi. The scheme invests around 70% of its pooled money in stocks of small and mid-cap companies. The risk-appetite of ABSL Small Cap Fund is moderately high.
Franklin India Smaller Companies Fund is suitable for individuals seeking for long-term capital appreciation. This capital appreciation is generated from a Portfolio primarily consisting of stocks belonging to small-cap companies. As on March 31, 2018, some of the constituents that formed part of the scheme’s portfolio included Deepak Nitrite Limited, JK Lakshmi Cement Limited, Nesco Limited, Finolex Cables Limited, and Voltas Limited. Franklin India Smaller Companies Fund tries to identify companies that have the potential to grow and become the market leaders in the future as a result of the capital appreciation. This scheme is jointly managed by Mr. Janakiraman Rengaraju, and others. The suitable investment horizon in case of Franklin India Smaller Companies Fund is five years or more.
The differences between both the schemes are explained with the help of four sections, namely, basics section, performance section, yearly performance section, and other details section. They are explained as follows.
Some of the parameters that form part of the basics section include current NAV, Fincash Rating, scheme category, and others. To begin with the scheme category, it can be said that both the schemes belong to the same category of Equity Mid & Small-Cap. The next element is current NAV which shows a difference between both the schemes. As on April 24, 2018, the NAV of ABSL Small Cap Fund was around INR 42. On the other hand, the NAV of Franklin India Smaller Companies Fund was approximately INR 61. With respect to Fincash Rating, it can be said that ABSL Mutual Fund’s scheme is rated as 5-Star and Franklin Templeton Mutual Fund’s scheme is rated as 4-Star scheme. The summary performance of the basics section is tabulated 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 Small Cap Fund
Growth
Fund Details ₹64.494 ↑ 0.56 (0.87 %) ₹4,160 on 31 Jul 23 31 May 07 ☆☆☆☆☆ Equity Small Cap 1 Moderately High 2.08 1.41 0 0 Not Available 0-365 Days (1%),365 Days and above(NIL) Franklin India Smaller Companies Fund
Growth
Fund Details ₹120.688 ↑ 0.60 (0.50 %) ₹9,104 on 31 Jul 23 13 Jan 06 ☆☆☆☆ Equity Small Cap 11 Moderately High 1.89 2.73 0.42 13.46 Not Available 0-1 Years (1%),1 Years and above(NIL)
This being the second section compares the Compounded Annual Growth Rate or CAGR returns generated by both the schemes at different intervals. Some of these intervals include 1 Month Return, 6 Month Return, 3 Year Return, and 5 Year Return. The comparison of the performance section reveals that in certain time intervals, ABSL’s scheme leads the race while in other Franklin’s scheme leads the race. The comparison of the performance section is summarized in the table given below.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch Aditya Birla Sun Life Small Cap Fund
Growth
Fund Details 3.9% 16.4% 27.3% 26.3% 29.9% 10.7% 12.1% Franklin India Smaller Companies Fund
Growth
Fund Details 3.5% 15.4% 26% 37.2% 37.8% 15.8% 15.2%
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This is the third section in the comparison which analyses the difference in the absolute returns generated by both the schemes. These absolute returns are generated by the schemes for a particular year. The comparison of the absolute returns shows that in certain years, Aditya Birla Sun Life Small Cap Fund has done better while in others, Franklin India Smaller Companies Fund has done better. The table given below shows the summary comparison of the yearly performance section.
Parameters Yearly Performance 2022 2021 2020 2019 2018 Aditya Birla Sun Life Small Cap Fund
Growth
Fund Details -6.5% 51.4% 19.8% -11.5% -22.6% Franklin India Smaller Companies Fund
Growth
Fund Details 3.6% 56.4% 18.7% -5% -17.4%
It is the last section in the comparison that includes parameters such as AUM, minimum SIP investment, and minimum lumpsum investment. It can be said that both the schemes differ with respect to minimum SIP and lump investment. The minimum SIP and lumpsum investment in case of ABSL Mutual Fund’s scheme is INR 1,000. However, for Franklin Templeton Mutual Fund, the minimum SIP and lumpsum amounts are INR 500 and INR 5,000 respectively. In addition, with respect to the AUM, both the schemes differ. As on March 31, 2018, the AUM of ABSL’s scheme was approximately INR 2,089 crores while of Franklin’s scheme was around INR 7,007 Crores. The table given below summarizes the comparison of other details section.
Parameters Other Details Min SIP Investment Min Investment Fund Manager Aditya Birla Sun Life Small Cap Fund
Growth
Fund Details ₹1,000 ₹1,000 Vishal Gajwani - 0.91 Yr. Franklin India Smaller Companies Fund
Growth
Fund Details ₹500 ₹5,000 R. Janakiraman - 12.59 Yr.
Aditya Birla Sun Life Small Cap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 30 Sep 18 ₹10,000 30 Sep 19 ₹8,852 30 Sep 20 ₹8,796 30 Sep 21 ₹15,994 30 Sep 22 ₹15,175 30 Sep 23 ₹19,387 Franklin India Smaller Companies Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 30 Sep 18 ₹10,000 30 Sep 19 ₹9,502 30 Sep 20 ₹9,113 30 Sep 21 ₹17,015 30 Sep 22 ₹17,767 30 Sep 23 ₹24,219
Aditya Birla Sun Life Small Cap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 7.34% Equity 92.66% Equity Sector Allocation
Sector Value Industrials 22.53% Consumer Cyclical 19.9% Financial Services 19.11% Technology 10.15% Basic Materials 6.98% Consumer Defensive 5.1% Health Care 4.56% Real Estate 2.54% Communication Services 1.09% Top Securities Holdings / Portfolio
Name Holding Value Quantity JK Cement Ltd (Basic Materials)
Equity, Since 31 Mar 18 | JKCEMENT3% ₹114 Cr 346,400 Cholamandalam Financial Holdings Ltd Shs Dematerialised (Financial Services)
Equity, Since 31 Dec 18 | CHOLAHLDNG2% ₹106 Cr 1,072,811 Go Fashion (India) Ltd (Consumer Cyclical)
Equity, Since 30 Nov 21 | 5434012% ₹105 Cr 784,280 Hitachi Energy India Ltd Ordinary Shares (Technology)
Equity, Since 30 Sep 20 | POWERINDIA2% ₹98 Cr 223,165 Star Health and Allied Insurance Co Ltd (Financial Services)
Equity, Since 30 Jun 23 | 5434122% ₹93 Cr 1,460,521
↑ 576,573 TD Power Systems Ltd (Industrials)
Equity, Since 30 Jun 23 | TDPOWERSYS2% ₹90 Cr 3,384,616 The Federal Bank Ltd (Financial Services)
Equity, Since 31 May 22 | FEDERALBNK2% ₹87 Cr 6,076,131 Campus Activewear Ltd (Consumer Cyclical)
Equity, Since 30 Apr 22 | 5435232% ₹83 Cr 2,759,605
↑ 800,063 Gokaldas Exports Ltd (Consumer Cyclical)
Equity, Since 31 Mar 23 | GOKEX2% ₹82 Cr 1,033,157
↓ -59,751 ICICI Securities Ltd (Financial Services)
Equity, Since 31 Jul 23 | ISEC2% ₹76 Cr 1,211,269
↑ 763,331 Franklin India Smaller Companies Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 7.51% Equity 92.31% Equity Sector Allocation
Sector Value Industrials 27.29% Financial Services 18.34% Consumer Cyclical 13.28% Basic Materials 7.96% Technology 6.11% Health Care 5.99% Consumer Defensive 5.5% Real Estate 5% Communication Services 1.38% Energy 0.38% Top Securities Holdings / Portfolio
Name Holding Value Quantity Equitas Small Finance Bank Ltd Ordinary Shares (Financial Services)
Equity, Since 31 Oct 20 | EQUITASBNK5% ₹435 Cr 48,064,081 Brigade Enterprises Ltd (Real Estate)
Equity, Since 30 Jun 14 | 5329294% ₹349 Cr 5,893,691 Deepak Nitrite Ltd (Basic Materials)
Equity, Since 31 Jan 16 | DEEPAKNTR3% ₹308 Cr 1,387,967 Kalyan Jewellers India Ltd (Consumer Cyclical)
Equity, Since 31 May 22 | KALYANKJIL3% ₹294 Cr 11,664,895
↓ -2,000,000 Jyothy Labs Ltd (Consumer Defensive)
Equity, Since 31 Dec 15 | 5329263% ₹248 Cr 7,113,765
↓ -250,000 J.B. Chemicals & Pharmaceuticals Ltd Shs Dematerialised (Healthcare)
Equity, Since 30 Jun 14 | JBCHEPHARM2% ₹230 Cr 831,988
↓ -50,000 KPIT Technologies Ltd (Technology)
Equity, Since 31 Aug 20 | KPITTECH2% ₹220 Cr 1,872,610 ICICI Bank Ltd (Financial Services)
Equity, Since 28 Feb 21 | ICICIBANK2% ₹217 Cr 2,259,945 Karur Vysya Bank Ltd (Financial Services)
Equity, Since 31 Oct 12 | 5900032% ₹208 Cr 17,148,917 Carborundum Universal Ltd (Industrials)
Equity, Since 31 Dec 14 | CARBORUNIV2% ₹206 Cr 1,812,883
Therefore, from the above parameters, it can be concluded that both the schemes differ on account of various parameters. As a consequence, individuals should be careful before investing in any of the schemes. They should understand the modalities of a scheme completely and check whether it matches their investment objective or not. They should also understand the modalities of the scheme completely. This will help them to attain their objectives on time and in a hassle-free manner.
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