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Fincash » ABSL Small Cap Vs Franklin India Smaller Cos Fund

Aditya Birla Sun Life Small Cap Fund Vs Franklin India Smaller Companies Fund

Updated on July 7, 2020 , 376 views

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 (Erstwhile Aditya Birla Sun Life Small & Midcap Fund)

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

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.

Aditya Birla Sun Life Small Cap Fund Vs Franklin India Smaller Companies Fund

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.

Basics Section

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
BasicsNAV
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
₹25.5969 ↑ 0.23   (0.92 %)
₹1,651 on 30 Apr 20
31 May 07
Equity
Small Cap
1
Moderately High
2.35
-0.94
0.24
-3.77
Not Available
0-365 Days (1%),365 Days and above(NIL)
Franklin India Smaller Companies Fund
Growth
Fund Details
₹40.7607 ↑ 0.18   (0.43 %)
₹4,900 on 30 Apr 20
13 Jan 06
Equity
Small Cap
11
Moderately High
2.14
-0.89
0.42
-4.91
Not Available
0-1 Years (1%),1 Years and above(NIL)

Performance Section

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
Performance1 Month
3 Month
6 Month
1 Year
3 Year
5 Year
Since launch
Aditya Birla Sun Life Small Cap Fund
Growth
Fund Details
6.9%
18.7%
-18.6%
-21.4%
-12%
1.1%
7.3%
Franklin India Smaller Companies Fund
Growth
Fund Details
5.8%
14.3%
-19.7%
-21.4%
-9.5%
1.3%
10.2%

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Yearly Performance Section

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 Performance2019
2018
2017
2016
2015
Aditya Birla Sun Life Small Cap Fund
Growth
Fund Details
-11.5%
-22.6%
56.7%
9.7%
13.4%
Franklin India Smaller Companies Fund
Growth
Fund Details
-5%
-17.4%
43.5%
10.2%
9.6%

Other Details Section

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 DetailsMin SIP Investment
Min Investment
Fund Manager
Aditya Birla Sun Life Small Cap Fund
Growth
Fund Details
₹1,000
₹1,000
Kunal Sangoi - 0.13 Yr.
Franklin India Smaller Companies Fund
Growth
Fund Details
₹500
₹5,000
R. Janakiraman - 13.26 Yr.

Growth of 10k Investments over the years

Growth of 10,000 investment over the years.
Aditya Birla Sun Life Small Cap Fund
Growth
Fund Details
DateValue
30 Jun 15₹10,000
30 Jun 16₹11,768
30 Jun 17₹15,445
30 Jun 18₹16,059
30 Jun 19₹13,979
30 Jun 20₹10,332
Growth of 10,000 investment over the years.
Franklin India Smaller Companies Fund
Growth
Fund Details
DateValue
30 Jun 15₹10,000
30 Jun 16₹11,474
30 Jun 17₹14,127
30 Jun 18₹14,938
30 Jun 19₹13,939
30 Jun 20₹10,366

Detailed portfolio Comparison

Asset Allocation
Aditya Birla Sun Life Small Cap Fund
Growth
Fund Details
Asset ClassValue
Cash6.77%
Equity93.23%
Equity Sector Allocation
SectorValue
Industrials18.37%
Financial Services17.58%
Basic Materials16.52%
Health Care10.27%
Consumer Cyclical9.88%
Technology5.15%
Utility5.1%
Communication Services5.06%
Consumer Defensive4.76%
Energy0.53%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Clearing Corporation Of India Limited
CBLO | -
6%₹93 Cr
Multi Commodity Exchange of India Ltd (Financial Services)
Equity, Since 31 Mar 19 | MCX
5%₹73 Cr550,000
Deepak Nitrite Ltd (Basic Materials)
Equity, Since 30 Jun 17 | 506401
4%₹64 Cr1,277,589
↓ -522,411
Cadila Healthcare Ltd (Healthcare)
Equity, Since 30 Nov 18 | 532321
4%₹62 Cr1,800,000
Johnson Controls - Hitachi Air Conditioning India Ltd (Technology)
Equity, Since 31 Oct 17 | 523398
3%₹52 Cr212,929
Coromandel International Ltd (Basic Materials)
Equity, Since 31 Dec 19 | 506395
3%₹52 Cr803,906
KEC International Ltd (Industrials)
Equity, Since 30 Sep 15 | 532714
3%₹47 Cr2,400,000
JK Cement Ltd (Basic Materials)
Equity, Since 31 Mar 18 | JKCEMENT
3%₹47 Cr400,000
Narayana Hrudayalaya Ltd (Healthcare)
Equity, Since 30 Nov 19 | NH
3%₹46 Cr1,692,815
TeamLease Services Ltd (Industrials)
Equity, Since 30 Sep 19 | TEAMLEASE
3%₹45 Cr300,000
Asset Allocation
Franklin India Smaller Companies Fund
Growth
Fund Details
Asset ClassValue
Equity91.21%
Other8.79%
Equity Sector Allocation
SectorValue
Industrials25.11%
Basic Materials15.69%
Financial Services13.46%
Consumer Cyclical9.61%
Health Care6.46%
Technology5.28%
Consumer Defensive4.83%
Communication Services4.65%
Real Estate3.29%
Energy2.83%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Call, Cash & Other Assets
Receivables | -
9%₹405 Cr
Deepak Nitrite Ltd (Basic Materials)
Equity, Since 31 Jan 16 | 506401
6%₹266 Cr5,342,967
↓ -17,522
Infosys Ltd (Technology)
Equity, Since 30 Apr 18 | INFY
4%₹187 Cr2,703,918
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Oct 14 | HDFCBANK
3%₹157 Cr1,649,964
J.B. Chemicals & Pharmaceuticals Ltd (Healthcare)
Equity, Since 30 Jun 14 | 506943
3%₹142 Cr2,087,587
↓ -36,671
Hindustan Petroleum Corp Ltd (Energy)
Equity, Since 28 Feb 18 | HINDPETRO
3%₹122 Cr6,289,744
Nesco Ltd (Industrials)
Equity, Since 31 Dec 13 | 505355
3%₹122 Cr2,832,329
Voltas Ltd (Industrials)
Equity, Since 31 Oct 13 | VOLTAS
3%₹121 Cr2,521,141
CCL Products (India) Ltd (Consumer Defensive)
Equity, Since 30 Apr 19 | 519600
2%₹113 Cr5,342,185
Eris Lifesciences Ltd Registered Shs (Healthcare)
Equity, Since 30 Sep 19 | 540596
2%₹112 Cr2,237,450
↑ 1,120

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.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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