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Fincash » L&T Emerging Businesses Vs HDFC Small Cap Fund

L&T Emerging Businesses Fund Vs HDFC Small Cap Fund

Updated on October 1, 2024 , 3529 views

L&T Emerging Businesses Fund and HDFC Small Cap Fund both form part of small-cap Mutual Fund schemes. Small cap funds are the ones who invest their corpus in shares of companies having corpus amount of less than INR 500 crores. Small-cap funds form the bottom of the pyramid when schemes are classified on the Basis of Market capitalization. These schemes have a high-risk and are considered good Income earners in the long-run. These schemes generally have a low share price thereby; individuals can purchase larger quantities of these shares. Though both L&T Emerging Businesses Fund and HDFC Small Cap Fund belong to the same category yet; they differ on various parameters such as NAV, performance, and so on. So, let us understand the differences between both the schemes.

L&T Emerging Businesses Fund

L&T Emerging Businesses Fund is managed by L&T Mutual Fund. This scheme was launched in the year 2014 and is an open-ended scheme. The scheme invests its corpus predominantly in equity-related of small-cap companies. Through its investments, it tries to attain Capital growth in the long-term. The scheme uses BSE S&P Small Cap Index to construct its Portfolio. L&T Emerging Businesses Fund is managed jointly by Mr. Karan Desai and Mr. S. N. Lahiri. As on April 10, 2018, some of the top holdings of L&T Emerging Business Fund include HEG Limited, Lakshmi Machine Works Limited, Ramco Cements Limited, Ipca Laboratories limited, and Nocil Limited. The scheme is suitable for investors who have a high-risk appetite and wish to earn more by Investing in shares of small-cap companies.

HDFC Small Cap Fund

HDFC Small Cap Fund is an open-ended Mutual Fund scheme offered by HDFC Mutual Fund under small cap category. This scheme was launched on April 03, 2008. The objective of the scheme is to generate capital growth in the long-term by primarily investing in shares of small-cap companies. The scheme uses Nifty Small Cap 100 as its benchmark index to construct its portfolio. It also uses NIFTY 50 as an additional index. The fund managers managing the HDFC Small Cap Fund are Mr. Chirag Setalvad and Mr. Rakesh Vyas. As on March 31, 2018, some of the top holdings of HDFC Small Cap Fund’s portfolio consisted of Sonata Software Limited, SKF India Limited, Tata Metaliks Limited, and Aurobindo Pharma Limited.

L&T Emerging Businesses Fund Vs HDFC Small Cap Fund

Though both L&T Emerging Businesses Fund and HDFC Small Cap Fund belong to the same category of small-cap funds yet, there exists differences between both the schemes. So, let us understand the differences between both the schemes that are divided into four sections, namely, Basics Section, Performance Section, Yearly Performance Section, and Other Details Section.

Basics Section

The basics section is the first one in the comparison of both the schemes. The parameters that form part of this scheme includes scheme category, Fincash Ratings, and Current NAV. To begin with the scheme category, it can be said that both the schemes belong to the same category, that is, Equity Mid & Small-Cap. With respect to Fincash Ratings, it can be said that L&T Emerging Businesses Fund is a 5-Star scheme while HDFC Small Cap Fund is a 4-Star Fund. The comparison of Current NAV between both the schemes portrays that HDFC Small Cap Fund leads the race. As on April 09, 2018, the NAV of L&T Emerging Businesses Fund was approximately INR 27 while the NAV of HDFC Small Cap Fund was approximately INR 46. The table given below summarizes the comparison of both the schemes.

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
L&T Emerging Businesses Fund
Growth
Fund Details
₹88.209 ↓ -1.92   (-2.13 %)
₹16,905 on 31 Jul 24
12 May 14
Equity
Small Cap
2
High
1.73
2.26
0.54
0.29
Not Available
0-1 Years (1%),1 Years and above(NIL)
HDFC Small Cap Fund
Growth
Fund Details
₹140.251 ↓ -2.39   (-1.67 %)
₹33,894 on 31 Aug 24
3 Apr 08
Equity
Small Cap
9
Moderately High
1.64
1.81
0
0
Not Available
0-1 Years (1%),1 Years and above(NIL)

Performance Section

The performance section compares the Compounded Annual Growth Rate or CAGR between both the schemes. This CAGR is compared at different time intervals, namely, 3 Month Return, 6 Month Return, 3 Year Return, 5 Year Return, and Return Since Inception. A holistic comparison of both the schemes shows that HDFC Small Cap Fund leads the race. However, at a certain time interval, even, L&T Emerging Businesses Fund has done well. With respect to 5 Year Returns, there is no data in the column of L&T Emerging Business Fund since the scheme was launched in the year 2014 and has not completed 5 years. The summary comparison of performance section is tabulated as follows.

Parameters
Performance1 Month
3 Month
6 Month
1 Year
3 Year
5 Year
Since launch
L&T Emerging Businesses Fund
Growth
Fund Details
2.6%
4.9%
26.7%
45.5%
28%
32.3%
23.6%
HDFC Small Cap Fund
Growth
Fund Details
0.5%
6.1%
19%
35.9%
24.6%
30%
17.5%

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Yearly Performance Section

It is the third section, in the comparison between both the schemes. In this section, the absolute returns of both the schemes are compared. A comparison of this scheme shows that L&T Emerging Business Fund leads the race in many instances. The summary of yearly performance section is as follows.

Parameters
Yearly Performance2023
2022
2021
2020
2019
L&T Emerging Businesses Fund
Growth
Fund Details
46.1%
1%
77.4%
15.5%
-8.1%
HDFC Small Cap Fund
Growth
Fund Details
44.8%
4.6%
64.9%
20.2%
-9.5%

Other Details Section

It is the last section in the comparison between both the schemes. The comparable elements forming part of other details section include Minimum SIP and Lumpsum investment, AUM, exit load, and others. With respect to minimum SIP investment, it can be said that in both the schemes, the minimum SIP amount is same, that is INR 500. Likewise, that minimum lumpsum amount is also same for both the schemes that is INR 5,000. The comparison of AUM between both the schemes shows that there is a significant difference between both of them. As on February 28, 2018, the AUM of L&T Emerging Businesses Fund was INR 4,286 crores while the AUM of HDFC Small Cap Fund was INR 2,670 crores. The table given below summarizes the comparison of both the schemes.

Parameters
Other DetailsMin SIP Investment
Min Investment
Fund Manager
L&T Emerging Businesses Fund
Growth
Fund Details
₹500
₹5,000
Venugopal Manghat - 4.71 Yr.
HDFC Small Cap Fund
Growth
Fund Details
₹300
₹5,000
Chirag Setalvad - 10.19 Yr.

Growth of 10k Investments over the years

Growth of 10,000 investment over the years.
L&T Emerging Businesses Fund
Growth
Fund Details
DateValue
30 Sep 19₹10,000
30 Sep 20₹9,813
30 Sep 21₹18,975
30 Sep 22₹20,759
30 Sep 23₹27,451
30 Sep 24₹39,650
Growth of 10,000 investment over the years.
HDFC Small Cap Fund
Growth
Fund Details
DateValue
30 Sep 19₹10,000
30 Sep 20₹9,775
30 Sep 21₹18,800
30 Sep 22₹19,466
30 Sep 23₹26,850
30 Sep 24₹36,302

Detailed Assets & Holdings Comparison

Asset Allocation
L&T Emerging Businesses Fund
Growth
Fund Details
Asset ClassValue
Cash2.99%
Equity97.01%
Equity Sector Allocation
SectorValue
Industrials33.31%
Consumer Cyclical15.58%
Basic Materials13.69%
Financial Services11.23%
Technology8.92%
Real Estate5.54%
Health Care3.16%
Consumer Defensive2.46%
Energy1.57%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Apar Industries Ltd (Industrials)
Equity, Since 31 Mar 17 | APARINDS
3%₹586 Cr635,400
Techno Electric & Engineering Co Ltd (Industrials)
Equity, Since 31 Jan 19 | TECHNOE
3%₹439 Cr2,573,042
NCC Ltd (Industrials)
Equity, Since 28 Feb 21 | NCC
2%₹404 Cr11,291,100
KPIT Technologies Ltd (Technology)
Equity, Since 30 Sep 21 | KPITTECH
2%₹403 Cr2,188,200
Sonata Software Ltd (Technology)
Equity, Since 31 Jul 18 | SONATSOFTW
2%₹400 Cr5,424,280
↑ 663,519
Brigade Enterprises Ltd (Real Estate)
Equity, Since 31 Jul 19 | 532929
2%₹381 Cr3,029,095
↓ -269,905
Century Textiles & Industries Ltd (Basic Materials)
Equity, Since 30 Sep 22 | 500040
2%₹375 Cr1,607,279
KEI Industries Ltd (Industrials)
Equity, Since 31 Jan 20 | KEI
2%₹356 Cr822,670
↓ -100,000
Trent Ltd (Consumer Cyclical)
Equity, Since 31 Jan 17 | 500251
2%₹339 Cr580,400
EIH Ltd (Consumer Cyclical)
Equity, Since 31 May 17 | 500840
2%₹311 Cr7,055,106
↓ -1,228,133
Asset Allocation
HDFC Small Cap Fund
Growth
Fund Details
Asset ClassValue
Cash7.35%
Equity92.65%
Equity Sector Allocation
SectorValue
Industrials27.74%
Consumer Cyclical19.38%
Technology13.17%
Health Care10.26%
Financial Services10.02%
Basic Materials6.37%
Communication Services2.83%
Consumer Defensive2.36%
Utility0.44%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Firstsource Solutions Ltd (Technology)
Equity, Since 31 Mar 18 | 532809
5%₹1,809 Cr59,658,949
↓ -1,114,165
Bank of Baroda (Financial Services)
Equity, Since 31 Mar 19 | 532134
3%₹1,071 Cr42,828,792
eClerx Services Ltd (Technology)
Equity, Since 31 Mar 18 | 532927
3%₹1,068 Cr3,678,893
↑ 30,988
Aster DM Healthcare Ltd Ordinary Shares (Healthcare)
Equity, Since 30 Jun 19 | ASTERDM
3%₹932 Cr22,917,842
↑ 950,363
Sonata Software Ltd (Technology)
Equity, Since 31 Oct 17 | SONATSOFTW
3%₹924 Cr13,879,889
Eris Lifesciences Ltd Registered Shs (Healthcare)
Equity, Since 31 Jul 23 | ERIS
3%₹873 Cr6,285,426
Power Mech Projects Ltd (Industrials)
Equity, Since 31 Aug 15 | POWERMECH
2%₹797 Cr1,175,331
Great Eastern Shipping Co Ltd (Industrials)
Equity, Since 31 Jan 15 | 500620
2%₹749 Cr5,622,939
Fortis Healthcare Ltd (Healthcare)
Equity, Since 31 Jul 23 | 532843
2%₹687 Cr12,453,275
Gabriel India Ltd (Consumer Cyclical)
Equity, Since 31 Oct 18 | GABRIEL
2%₹660 Cr12,036,000

To conclude, it can be said that, there exists a difference between both the schemes. However, individuals should be careful while in any of the Mutual Fund scheme. They should understand its functioning completely and even check if it matches with their investment objective or not. Individuals can also consider the opinion of a financial advisor if they have any queries. This will help investors to attain their goals 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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