Table of Contents
L&T Emerging Businesses Fund Vs L&T Mid Cap Fund
L&T Emerging Businesses Fund and L&T Midcap Fund both belong to the same category of the mid & small-cap category of Equity Funds. However, L&T Emerging Businesses Fund predominantly invests its corpus in equity and equity-related instruments of small-cap companies, while L&T Midcap Fund invests its corpus in shares of midcap companies. As a consequence, there are some differences between both the schemes. In short, small-cap companies are the ones whose Market capitalization is less than INR 500 Crores. On the other hand, the market capitalization of mid-cap companies ranges between INR 500 – INR 10,000 Crores. Though both the schemes belong to the same category, they differ on account of numerous parameters. So, let’s understand the differences between both the schemes through this article.
About L&T Emerging Businesses Fund
The investment objective of L&T Emerging Businesses Fund is to generate long-term Capital growth 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. L&T Emerging Businesses Fund was incepted on May 13, 2014. Some of the advantages of L&T Emerging Businesses Fund include style diversifier, suitable for investors seeking higher returns, and an experienced investment team. The scheme uses S&P BSE small cap TRI as its benchmark to construct its portfolio.
Supreme Industries Limited, Swaraj Engines Limited, NOCIL Limited, Future Retail Limited, are some of the holdings of L&T Emerging Businesses Fund as of March 31, 2018.
About L&T Midcap Fund
L&T Midcap Fund is also a part of L&T Mutual Fund that primarily focuses to invest in mid-cap stocks. L&T Midcap Fund uses Nifty Free Float Midcap 100 Index to construct its portfolio. This scheme was incepted in the month of August 2004 and is managed by Mr. S. N. Lahiri and Mr. Vihang Naik. As per the scheme’s Asset Allocation objective, it invests around 80-100% of its corpus in shares of mid-cap companies while the remaining in fixed Income and money market instruments. The scheme invests in stocks that form part of its benchmark index.
The top constituents of L&T Midcap Fund’s portfolio (as on 31st March'18) included Cholamandalam Investment and Finance Company Limited, The Ramco Cements Limited, Berger Paints India Limited, Graphite India Limited, and IndusInd Bank Limited.
L&T Emerging Businesses Fund Vs L&T Midcap Fund
Though L&T Emerging Businesses Fund and L&T Midcap Fund belong to the same category, nevertheless; they differ on various parameters. So, let’s understand the differences between both the schemes by comparing these parameters that are classified into four sections which are as follows.
Basics Section
It is the first section in the comparison of the schemes that includes elements such as Fincash Rating, current NAV, and scheme category.
The comparison of Fincash Rating reveals that L&T Emerging Businesses Fund is rated as 5-Star, while L&T Midcap Fund is rated as 4-Star scheme.
With respect to NAV, it can be said that there is a drastic difference between both the schemes. As on April 24, 2018, the NAV of L&T Emerging Businesses Fund was approximately INR 28 while of L&T Midcap Fund is around INR 147. The comparison of scheme category reveals that both the schemes belong to the same category, that is, Equity Mid & Small Cap. The table given below shows the summarized comparison 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 L&T Emerging Businesses Fund
Growth
Fund Details ₹46.4346 ↑ 0.79 (1.73 %) ₹8,672 on 31 Jan 23 12 May 14 ☆☆☆☆☆ Equity Small Cap 2 High 1.87 -0.15 0.61 3.77 Not Available 0-1 Years (1%),1 Years and above(NIL) L&T Midcap Fund
Growth
Fund Details ₹200.913 ↑ 2.46 (1.24 %) ₹7,089 on 31 Jan 23 9 Aug 04 ☆☆☆☆ Equity Mid Cap 5 High 1.86 -0.22 -1.26 -2.32 Not Available 0-1 Years (1%),1 Years and above(NIL)
Performance Section
It is the second section in the comparison that analyses the difference in the Compounded Annual Growth Rate or CAGR returns of both the schemes. This CAGR return is compared at different time intervals such as 3 Month Return, 6 Month Return, 3 Year Return, and 5 Year Return. The comparison of the performance section reveals that L&T Emerging Businesses Fund leads the race in most of the instances. The summary comparison of the performance section is tabulated as follows.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch L&T Emerging Businesses Fund
Growth
Fund Details -0.9% -0.8% 0.3% 4% 46.1% 11.6% 18.9% L&T Midcap Fund
Growth
Fund Details -1.3% -3.3% -1.8% 0% 27.3% 7.6% 17.5%
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Yearly Performance Section
The comparison of Absolute Returns generated by both the schemes for a particular year is done in the yearly performance section. The comparison of yearly performance section reveals that L&T Emerging Businesses Fund leads the race. The table given below shows the summary 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% L&T Midcap Fund
Growth
Fund Details 1.1% 30.4% 19% -0.2% -12%
Other Details Section
It is the last section in the comparison that includes elements such as AUM, minimum SIP and lumpsum investment. The minimum SIP and lumpsum investment for both the schemes are same. With respect to minimum SIP amount, it is INR 500 for both the schemes and for the lumpsum amount, it is INR 5,000. However, the comparison of AUM reveals a difference between both the schemes.
As on March 31, 2018, the AUM of L&T Emerging Businesses Fund is around INR 4,404 Crores. On the other hand, for L&T Midcap Fund, the AUM is approximately INR 2,403 Crores.
The summary comparison of the other details section is as shown 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 - 3.21 Yr. L&T Midcap Fund
Growth
Fund Details ₹500 ₹5,000 Vihang Naik - 6.67 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 28 Feb 18 ₹10,000 28 Feb 19 ₹8,349 29 Feb 20 ₹7,845 28 Feb 21 ₹10,481 28 Feb 22 ₹15,346 28 Feb 23 ₹16,795 L&T Midcap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 28 Feb 18 ₹10,000 28 Feb 19 ₹8,663 29 Feb 20 ₹9,296 28 Feb 21 ₹11,787 28 Feb 22 ₹13,451 28 Feb 23 ₹14,109
Detailed Assets & Holdings Comparison
L&T Emerging Businesses Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 1.7% Equity 98.3% Equity Sector Allocation
Sector Value Industrials 34.81% Basic Materials 17.04% Consumer Cyclical 15.6% Financial Services 9.15% Technology 7.18% Real Estate 5.69% Consumer Defensive 4.82% Health Care 2.66% Energy 1.27% 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% ₹269 Cr 5,081,639 RHI Magnesita India Ltd (Industrials)
Equity, Since 31 Aug 18 | RHIM3% ₹235 Cr 3,018,479 Indian Bank (Financial Services)
Equity, Since 31 Jan 22 | 5328143% ₹230 Cr 7,556,600 Grindwell Norton Ltd (Industrials)
Equity, Since 30 Sep 17 | 5060763% ₹225 Cr 1,127,322 Carborundum Universal Ltd (Industrials)
Equity, Since 31 Jul 16 | CARBORUNIV3% ₹219 Cr 2,249,700 KEI Industries Ltd (Industrials)
Equity, Since 31 Jan 20 | KEI2% ₹215 Cr 1,329,400 JK Lakshmi Cement Ltd (Basic Materials)
Equity, Since 31 Oct 20 | JKLAKSHMI2% ₹209 Cr 2,845,600 E I D Parry India Ltd (Consumer Defensive)
Equity, Since 31 Jan 20 | EIDPARRY2% ₹207 Cr 3,804,620 Apar Industries Ltd (Industrials)
Equity, Since 31 Mar 17 | APARINDS2% ₹200 Cr 1,184,900 Ratnamani Metals & Tubes Ltd (Basic Materials)
Equity, Since 30 Nov 17 | RATNAMANI2% ₹195 Cr 880,422 L&T Midcap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 5.05% Equity 94.95% Equity Sector Allocation
Sector Value Financial Services 18.87% Industrials 15.72% Basic Materials 15.03% Consumer Cyclical 14.28% Health Care 13.69% Consumer Defensive 5.59% Technology 4.23% Utility 2.75% Communication Services 2.01% Real Estate 1.95% Energy 0.83% Top Securities Holdings / Portfolio
Name Holding Value Quantity Ratnamani Metals & Tubes Ltd (Basic Materials)
Equity, Since 31 Oct 15 | RATNAMANI3% ₹236 Cr 1,063,861 Emami Ltd (Consumer Defensive)
Equity, Since 31 Aug 13 | 5311623% ₹220 Cr 4,965,964
↓ -101,003 Sundaram Finance Ltd (Financial Services)
Equity, Since 30 Nov 13 | SUNDARMFIN2% ₹169 Cr 743,568 Abbott India Ltd (Healthcare)
Equity, Since 31 May 18 | ABBOTINDIA2% ₹168 Cr 80,700 Ipca Laboratories Ltd (Healthcare)
Equity, Since 30 Sep 19 | 5244942% ₹168 Cr 1,975,600 Cummins India Ltd (Industrials)
Equity, Since 30 Apr 18 | 5004802% ₹162 Cr 1,128,100 Indian Bank (Financial Services)
Equity, Since 31 Oct 21 | 5328142% ₹161 Cr 5,281,200 Bosch Ltd (Consumer Cyclical)
Equity, Since 31 Oct 19 | 5005302% ₹155 Cr 90,899 Indian Hotels Co Ltd (Consumer Cyclical)
Equity, Since 30 Apr 18 | 5008502% ₹141 Cr 4,668,200 Blue Dart Express Ltd (Industrials)
Equity, Since 31 Dec 17 | BLUEDART2% ₹135 Cr 213,701
↓ -10,000
Therefore, it can be concluded in a nutshell, that both L&T Emerging Businesses Fund and L&T Midcap Fund differ on account of various parameters. As a result, individuals should be careful while making their investment decisions. They should understand the functioning of a scheme completely before they invest their money in it. Investors should also ensure whether the schemes chosen matches their investment objective or not. This will help them to ensure that their money is safe and their objectives are met on time.
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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