Fincash » L&T Emerging Businesses Fund Vs Kotak Small Cap Fund
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L&T Emerging Businesses Fund Vs Kotak Small Cap Fund
Both L&T Emerging Businesses Fund and Kotak Small Cap Fund belong to the category of Small cap funds. Small-cap funds invest in shares of companies having a Market capitalization of less than INR 500 Crores. Both the schemes are suitable for long-term tenure. So, let us understand the differences between L&T Emerging Businesses Fund and Kotak Small Cap Fund through this article.
About L&T Emerging Businesses Fund
L&T Emerging Businesses Fund was launched in the month of May 2014. The investment objective of L&T Emerging Businesses Fund is to attain Capital appreciation in the long-run. This objective is attained from a diversified Portfolio consisting of equity-related securities predominantly focusing on small-cap companies. This scheme is jointly managed by Mr. S. N. Lahiri and Mr. Karan Desai. As on March 31, 2018, some of the constituents of L&T Emerging Businesses Fund’s portfolio consisted of Supreme Industries Limited, Swaraj Engines Limited, NOCIL Limited, Future Retail Limited. L&T Emerging Businesses Fund uses S&P BSE Small Cap TRI as its benchmark to construct its portfolio. The key benefits of L&T Emerging Businesses Fund are experienced investment team, suitable for investors seeking higher returns, and style diversifier.
About Kotak Small Cap Fund (Erstwhile Kotak Midcap Scheme)
Kotak Small Cap Fund (earlier known as Kotak Midcap Scheme) was incepted on February 24, 2005. This scheme is suitable for individuals seeking for long-term capital growth by Investing in equity and equity-related securities primarily consisting of small-cap companies. JK Cement Limited, Dixon Technologies India Limited, IndusInd Bank Limited, and Solar Industries India Limited are some of the top holdings of Kotak Small Cap Fund as on March 31, 2018. Mr. Pankaj Tibrewal is the sole fund manager managing Kotak Small Cap Fund. Based on the Asset Allocation pattern, Kotak Small Cap Fund invests around 65-100% of its accumulated fund money in shares of mid-cap securities. The remaining fund money is invested fixed Income and money market instruments or shares of companies other than small-cap category up to a maximum limit of 35%.
L&T Emerging Businesses Fund Vs Kotak Small Cap Fund
Though both the Mutual Fund schemes belong to the same category, nonetheless; they differ on account of various parameters such as AUM, performance, and so on. So, let’s compare the differences between L&T Emerging Businesses Fund and Kotak Small Cap Fund using these parameters that are classified into four section given below as follows.
Basics Section
Current NAV, Fincash Rating, and scheme category are the parameters that form part of the basics section. The comparison of current NAV reveals that there is a significant difference between the NAV of both the schemes. As on April 24, 2018, the NAV of Kotak Small Cap Fund was approximately INR 81 while of L&T Emerging Businesses Fund was around INR 28. With respect to Fincash Rating of the schemes, it can be said that L&T Emerging Businesses Fund is rated as 5-Star while Kotak Small Cap Fund is rated as 3-Star. The scheme category for both Mutual Fund schemes is same, that is, Equity Mid & Small-cap. The summary comparison 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 L&T Emerging Businesses Fund
Growth
Fund Details ₹45.7886 ↓ -0.04 (-0.08 %) ₹8,697 on 31 Dec 22 12 May 14 ☆☆☆☆☆ Equity Small Cap 2 High 1.87 -0.16 0.2 1.83 Not Available 0-1 Years (1%),1 Years and above(NIL) Kotak Small Cap Fund
Growth
Fund Details ₹158.397 ↓ -0.11 (-0.07 %) ₹8,498 on 31 Dec 22 24 Feb 05 ☆☆☆ Equity Small Cap 23 Moderately High 1.55 -0.49 0.57 -3.22 Not Available 0-1 Years (1%),1 Years and above(NIL)
Performance Section
This section compares the Compounded Annual Growth Rate or CAGR returns of both the schemes. These CAGR returns are compared at different time intervals such as 1 Month Return, 6 Month Return, 5 Year Return, and Return Since Inception. The comparison of performance section reveals that in many instances the returns generated by L&T Emerging Businesses Fund is higher. The summary comparison of the performance section is as shown in the table given below.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch L&T Emerging Businesses Fund
Growth
Fund Details -3% -2.4% 2.9% -0.1% 24.6% 10.1% 19.1% Kotak Small Cap Fund
Growth
Fund Details -2.4% -3.3% 0% -2.2% 25.7% 14% 16.7%
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Yearly Performance Section
The comparison of absolute returns generated by both schemes for a particular year is compared in this section. The analysis of this section also reveals that L&T Emerging Businesses Fund Leads the race. The table given below summarizes the comparison of the yearly performance section.
Parameters Yearly Performance 2022 2021 2020 2019 2018 L&T Emerging Businesses Fund
Growth
Fund Details 1% 77.4% 15.5% -8.1% -13.7% Kotak Small Cap Fund
Growth
Fund Details -3.1% 70.9% 34.2% 5% -17.3%
Other Details Section
It is the last section in the comparison of both the schemes. This section compares elements such as AUM, minimum SIP and lumpsum amount, and others related parameters. The comparison of AUM reveals a drastic difference between both the schemes. As on March 31, 2018, the AUM of Kotak Small Cap Fund was around INR 819 Crores while of L&T Emerging Businesses Fund was around INR 4,404 Crores. The minimum lumpsum investment for both the schemes is same, that is, INR 5,000. However, the minimum SIP investment for Kotak Mutual Fund’s scheme is INR 1,000 and for L&T Mutual Fund’s scheme is INR 500. The comparison of other details section is summarized in the table given below.
Parameters Other Details Min SIP Investment Min Investment Fund Manager L&T Emerging Businesses Fund
Growth
Fund Details ₹500 ₹5,000 Venugopal Manghat - 3.04 Yr. Kotak Small Cap Fund
Growth
Fund Details ₹1,000 ₹5,000 Pankaj Tibrewal - 12.95 Yr.
Growth of 10k Investments over the years
L&T Emerging Businesses Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Dec 17 ₹10,000 31 Dec 18 ₹8,628 31 Dec 19 ₹7,925 31 Dec 20 ₹9,150 31 Dec 21 ₹16,233 31 Dec 22 ₹16,397 Kotak Small Cap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Dec 17 ₹10,000 31 Dec 18 ₹8,270 31 Dec 19 ₹8,687 31 Dec 20 ₹11,659 31 Dec 21 ₹19,930 31 Dec 22 ₹19,317
Detailed portfolio Comparison
L&T Emerging Businesses Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 2.04% Equity 97.96% Equity Sector Allocation
Sector Value Industrials 33.99% Basic Materials 17.39% Consumer Cyclical 16.06% Financial Services 8.99% Technology 6.89% Real Estate 5.69% Consumer Defensive 5.04% Health Care 2.69% Energy 1.16% Communication Services 0.08% Top Securities Holdings / Portfolio
Name Holding Value Quantity K.P.R. Mill Ltd (Consumer Cyclical)
Equity, Since 28 Feb 15 | KPRMILL3% ₹263 Cr 5,081,639 RHI Magnesita India Ltd (Industrials)
Equity, Since 31 Aug 18 | RHIM3% ₹253 Cr 3,018,479 JK Lakshmi Cement Ltd (Basic Materials)
Equity, Since 31 Oct 20 | JKLAKSHMI3% ₹232 Cr 2,845,600
↑ 111,765 City Union Bank Ltd (Financial Services)
Equity, Since 28 Feb 17 | CUB3% ₹218 Cr 12,108,492 E I D Parry India Ltd (Consumer Defensive)
Equity, Since 31 Jan 20 | EIDPARRY2% ₹216 Cr 3,804,620 Indian Bank (Financial Services)
Equity, Since 31 Jan 22 | INDIANB2% ₹216 Cr 7,556,600 Apar Industries Ltd (Industrials)
Equity, Since 31 Mar 17 | APARINDS2% ₹212 Cr 1,184,900 Grindwell Norton Ltd (Industrials)
Equity, Since 30 Sep 17 | GRINDWELL2% ₹201 Cr 1,127,322
↓ -100,000 Carborundum Universal Ltd (Industrials)
Equity, Since 31 Jul 16 | CARBORUNIV2% ₹197 Cr 2,249,700 KEI Industries Ltd (Industrials)
Equity, Since 31 Jan 20 | KEI2% ₹195 Cr 1,329,400 Kotak Small Cap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 3.23% Equity 96.77% Equity Sector Allocation
Sector Value Industrials 33.29% Consumer Cyclical 27.55% Basic Materials 20.05% Financial Services 5.16% Health Care 3.38% Technology 3.15% Consumer Defensive 1.9% Real Estate 1.34% Energy 0.27% Top Securities Holdings / Portfolio
Name Holding Value Quantity Carborundum Universal Ltd (Industrials)
Equity, Since 30 Jun 18 | CARBORUNIV4% ₹366 Cr 4,186,972 Century Plyboards (India) Ltd (Consumer Cyclical)
Equity, Since 31 Oct 18 | CENTURYPLY3% ₹289 Cr 5,620,490 Ratnamani Metals & Tubes Ltd (Basic Materials)
Equity, Since 31 Jan 18 | RATNAMANI3% ₹282 Cr 1,440,380 Sheela Foam Ltd (Consumer Cyclical)
Equity, Since 30 Jun 18 | SFL3% ₹250 Cr 1,927,672 Cyient Ltd (Industrials)
Equity, Since 31 Dec 19 | CYIENT3% ₹248 Cr 3,061,007 Galaxy Surfactants Ltd (Basic Materials)
Equity, Since 31 Jan 18 | GALAXYSURF3% ₹244 Cr 992,909 Blue Star Ltd (Industrials)
Equity, Since 31 May 18 | BLUESTARCO3% ₹237 Cr 1,978,982 Solar Industries India Ltd (Basic Materials)
Equity, Since 31 Aug 11 | SOLARINDS3% ₹224 Cr 511,511
↓ -22,329 Garware Technical Fibres Ltd (Consumer Cyclical)
Equity, Since 30 Jun 21 | GARFIBRES3% ₹223 Cr 715,959
↑ 15,576 Supreme Industries Ltd (Industrials)
Equity, Since 31 May 14 | SUPREMEIND3% ₹215 Cr 879,324
↓ -108,851
Therefore, from the above parameters, it can be said that both the schemes differ with each other. As a result, individuals should pay a lot of caution while choosing any of the schemes. They should understand the modalities of the scheme thoroughly and ensure that the scheme matches with their investment objectives. This will help them to attain their objectives on time and ensure that their investment is safe.
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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