Fincash » Franklin India Smaller Companies Vs HDFC Small Cap Fund
Table of Contents
Franklin India Smaller Companies Fund and HDFC Equity Fund both belong to the small-cap category of equity fund. These schemes invest their corpus in shares of companies having a Market capitalization of less than INR 500 Crores. Small-cap companies are either start-ups or are in their early stages of development. These schemes form the bottom of the pyramid when Equity Funds are compared on the Basis of market capitalization. In many situations, small-cap schemes have performed better as compared to others. Though Franklin India Smaller Companies Fund and HDFC Small Cap Fund belong to the same category of Small cap funds, yet they differ on account of numerous parameters such as performance, NAV, AUM, and so on. So, let’s understand the differences between both the schemes through this article.
Franklin India Smaller Companies Fund is managed and offered by Franklin Templeton Mutual Fund under the small-cap category. This scheme was launched in the month of January 2006. Franklin India Smaller Companies Fund uses Nifty Free Float Midcap 100 Index and Nifty 50 Index as its benchmark to construct the portfolio. As on March 31, 2018, some of the top 10 holdings of Franklin India Smaller Companies Fund’s portfolio consisted of HDFC Bank Limited, Finolex Cables Limited, Voltas Limited, and Cyient Limited. The scheme is managed by Mr. Janakiraman, Mr. Hari Shyamsunder, and Mr. Shrikesh Nair. Franklin India Smaller Companies Fund is suitable for individuals seeking for long-term Capital growth generated from a fund that primarily invests in small and mid-cap companies.
HDFC Small Cap Fund is an open-ended small-cap scheme offered by HDFC Mutual Fund. This scheme was launched on April 3, 2008, and its objective is to achieve capital growth in the long-term by Investing mostly in small-cap and mid-cap companies. NIFTY Smallcap 100 Index is the primary benchmark and NIFTY 50 Index is the additional benchmark used by HDFC Small Cap Fund to construct its portfolio. Mr. Chirag Setalvad and Mr. Rakesh Vyas jointly manage the performance of HDFC Small Cap Fund. As on March 31, 2018, some of the top constituents of HDFC Small Cap Fund include Sonata Software Limited, SKF India Limited, Tata Metaliks Limited, and Aurobindo Pharma Limited. As per the Asset Allocation composition, the HDFC Small Cap Fund invests around 80-100% of its fund money in shares of small cap companies and the remaining in mid-cap companies.
There are numerous differences between Franklin India Smaller Companies Fund and HDFC Small Cap Fund on account of various parameters. So, let us understand the differences between these schemes that are categorized in the following sections.
Being the first section, it compares elements such as current NAV, Fincash Rating, and scheme category. With respect to Fincash Rating, it can be said that both the schemes are rated as 4-Star schemes. The comparison of current NAV reveals that there is a difference between the NAV of both the schemes. The NAV of Franklin India Smaller Companies Fund was approximately INR 47 while of HDFC Small Cap Fund was around INR 61, as of April 24, 2018. Even the comparison of scheme category shows that both the schemes belong to the same category, that is, Equity Mid & Small-Cap. The table given below shows the comparison summary of the basics section.
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 Franklin India Smaller Companies Fund
Growth
Fund Details ₹88.5589 ↑ 0.46 (0.52 %) ₹6,208 on 30 Jun 22 13 Jan 06 ☆☆☆☆ Equity Small Cap 11 Moderately High 1.96 0.03 -0.45 4.36 Not Available 0-1 Years (1%),1 Years and above(NIL) HDFC Small Cap Fund
Growth
Fund Details ₹72.203 ↓ -0.01 (-0.01 %) ₹11,753 on 30 Jun 22 3 Apr 08 ☆☆☆☆ Equity Small Cap 9 Moderately High 1.92 -0.27 0 0 Not Available 0-1 Years (1%),1 Years and above(NIL)
It is the second section in the comparison which analyses the difference in the Compounded Annual Growth Rate or CAGR returns of both the scheme. These CAGR returns are compared at different time intervals such as 6 Month Return, 3 Year Return, 5 Year Return, and Return Since Inception. The comparison of the performance section reveals that in certain instances, HDFC Small Cap Fund leads the race while in others Franklin India Smaller Companies Fund leads the race. The summary comparison of the performance is as shown in the table given below.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch Franklin India Smaller Companies Fund
Growth
Fund Details 9.9% 1.8% -4.6% 5.7% 23.9% 10.1% 14.1% HDFC Small Cap Fund
Growth
Fund Details 9.2% 3.5% -5.6% 2.7% 24.9% 14% 14.8%
Talk to our investment specialist
Being the third section in the comparison, it analyzes the difference in the absolute returns generated by both the schemes for a particular year. In yearly performance section too, the comparison reveals that for certain years HDFC Small Cap Fund has performed better while for other Franklin India Smaller Companies Fund has done better. The table given below summarizes the comparison of yearly performance section.
Parameters Yearly Performance 2021 2020 2019 2018 2017 Franklin India Smaller Companies Fund
Growth
Fund Details 56.4% 18.7% -5% -17.4% 43.5% HDFC Small Cap Fund
Growth
Fund Details 64.9% 20.2% -9.5% -8.1% 60.8%
It is the last section in the comparison that includes elements such as AUM, minimum SIP and lumpsum investment, and others. With respect to minimum SIP and lumpsum investment, it can be said that both the schemes have the same amount. The minimum SIP amount for both the schemes is INR 500 and minimum lumpsum investment is INR 5,000. However, the comparison of AUM shows there is a drastic difference between the AUMs of the schemes. As on March 31, 2018, the AUM of HDFC Small Cap Fund is approximately INR 2,968 Crores while of Franklin India Smaller Companies Fund is approximately INR 7,007 Crores. The comparison summary of this section is tabulated as follows.
Parameters Other Details Min SIP Investment Min Investment Fund Manager Franklin India Smaller Companies Fund
Growth
Fund Details ₹500 ₹5,000 R. Janakiraman - 15.35 Yr. HDFC Small Cap Fund
Growth
Fund Details ₹300 ₹5,000 Chirag Setalvad - 8.1 Yr.
Franklin India Smaller Companies Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Jul 17 ₹10,000 31 Jul 18 ₹10,420 31 Jul 19 ₹8,734 31 Jul 20 ₹7,544 31 Jul 21 ₹15,210 31 Jul 22 ₹15,901 HDFC Small Cap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Jul 17 ₹10,000 31 Jul 18 ₹11,725 31 Jul 19 ₹10,003 31 Jul 20 ₹8,873 31 Jul 21 ₹18,534 31 Jul 22 ₹18,639
Franklin India Smaller Companies Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 4.6% Equity 95.4% Equity Sector Allocation
Sector Value Industrials 25.5% Consumer Cyclical 15.6% Financial Services 15.47% Basic Materials 10.83% Real Estate 6.72% Consumer Defensive 6.32% Health Care 6.21% Technology 4.07% Communication Services 3.09% Energy 1.59% Top Securities Holdings / Portfolio
Name Holding Value Quantity Brigade Enterprises Ltd (Real Estate)
Equity, Since 30 Jun 14 | 5329295% ₹309 Cr 6,950,570 Deepak Nitrite Ltd (Basic Materials)
Equity, Since 31 Jan 16 | DEEPAKNTR4% ₹241 Cr 1,387,967 KPIT Technologies Ltd (Technology)
Equity, Since 31 Aug 20 | KPITTECH3% ₹211 Cr 4,077,593 CCL Products (India) Ltd (Consumer Defensive)
Equity, Since 30 Apr 19 | CCL3% ₹194 Cr 5,051,976 Tube Investments of India Ltd Ordinary Shares (Consumer Cyclical)
Equity, Since 30 Sep 19 | TIINDIA3% ₹184 Cr 1,000,416 J.B. Chemicals & Pharmaceuticals Ltd (Healthcare)
Equity, Since 30 Jun 14 | JBCHEPHARM3% ₹183 Cr 1,161,988 GHCL Ltd (Basic Materials)
Equity, Since 30 Sep 16 | GHCL3% ₹168 Cr 2,976,441
↓ -357,031 ICICI Bank Ltd (Financial Services)
Equity, Since 28 Feb 21 | ICICIBANK3% ₹160 Cr 2,259,945 Jyothy Labs Ltd (Consumer Defensive)
Equity, Since 31 Dec 15 | 5329262% ₹154 Cr 10,263,765 Finolex Cables Ltd (Industrials)
Equity, Since 31 Mar 12 | FINCABLES2% ₹143 Cr 3,812,021 HDFC Small Cap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 6.16% Equity 93.84% Equity Sector Allocation
Sector Value Industrials 23.67% Consumer Cyclical 21.4% Technology 14.07% Basic Materials 12.17% Financial Services 9.44% Health Care 6.17% Consumer Defensive 4.26% Communication Services 2.67% Top Securities Holdings / Portfolio
Name Holding Value Quantity Bajaj Electricals Ltd (Consumer Cyclical)
Equity, Since 31 Mar 19 | BAJAJELEC5% ₹562 Cr 5,485,727
↓ -95,000 Sonata Software Ltd (Technology)
Equity, Since 31 Oct 17 | SONATSOFTW5% ₹543 Cr 8,105,875
↑ 34,531 Firstsource Solutions Ltd (Technology)
Equity, Since 31 Mar 18 | FSL4% ₹499 Cr 48,455,000 eClerx Services Ltd (Technology)
Equity, Since 31 Mar 18 | ECLERX3% ₹357 Cr 1,861,468
↑ 12,599 Sharda Cropchem Ltd (Basic Materials)
Equity, Since 31 Mar 18 | 5386663% ₹356 Cr 5,630,000 Bank of Baroda (Financial Services)
Equity, Since 31 Mar 19 | 5321343% ₹324 Cr 33,314,201
↑ 1,500,000 Aster DM Healthcare Ltd Ordinary Shares (Healthcare)
Equity, Since 30 Jun 19 | ASTERDM3% ₹294 Cr 16,512,928 Gujarat Fluorochemicals Ltd Ordinary Shares (Basic Materials)
Equity, Since 31 Oct 19 | FLUOROCHEM2% ₹288 Cr 1,036,848
↓ -51,829 PNC Infratech Ltd (Industrials)
Equity, Since 31 Oct 15 | PNCINFRA2% ₹285 Cr 11,772,819 Chambal Fertilisers & Chemicals Ltd (Basic Materials)
Equity, Since 28 Feb 18 | CHAMBLFERT2% ₹279 Cr 10,500,000
↓ -1,943,364
Therefore, from the above pointers, it can be said that there are differences between both the schemes on account of various parameters. As a result, individuals should be careful before investing in any of the schemes. They should understand the modalities of a scheme completely and check whether it is in-line with their objective or not. This will help them to attain their objectives on time and ensure that their investment is safe.
You Might Also Like
Nippon India Small Cap Fund Vs Franklin India Smaller Companies Fund
Aditya Birla Sun Life Small Cap Fund Vs Franklin India Smaller Companies Fund
Nippon India Small Cap Fund Vs HDFC Small Cap Fund: A Comparative Study
Nippon India Small Cap Fund Vs Aditya Birla Sun Life Small Cap Fund
L&T Emerging Businesses Fund Vs Franklin India Smaller Companies Fund