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Fincash » L&T Emerging Businesses Fund Vs L&T Midcap Fund

L&T Emerging Businesses Fund Vs L&T Mid Cap Fund

Updated on March 25, 2024 , 3497 views

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
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
₹69.1417 ↑ 0.37   (0.54 %)
₹13,747 on 29 Feb 24
12 May 14
Equity
Small Cap
2
High
1.84
3.03
0.68
-2.22
Not Available
0-1 Years (1%),1 Years and above(NIL)
Essel Long Term Advantage Fund
Growth
Fund Details
₹25.4416 ↑ 0.03   (0.14 %)
₹63 on 29 Feb 24
30 Dec 15
Not Rated
Equity
ELSS
Moderately High
0
2.14
-1.17
-2.73
Not Available
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
Performance1 Month
3 Month
6 Month
1 Year
3 Year
5 Year
Since launch
L&T Emerging Businesses Fund
Growth
Fund Details
-4.7%
0.9%
11.5%
51.1%
32.7%
23%
21.6%
Essel Long Term Advantage Fund
Growth
Fund Details
-3.2%
0.6%
8.2%
31.6%
14.6%
12.3%
12%

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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 Performance2023
2022
2021
2020
2019
L&T Emerging Businesses Fund
Growth
Fund Details
46.1%
1%
77.4%
15.5%
-8.1%
Essel Long Term Advantage Fund
Growth
Fund Details
24.1%
-2%
29.4%
8.5%
7.9%

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 DetailsMin SIP Investment
Min Investment
Fund Manager
L&T Emerging Businesses Fund
Growth
Fund Details
₹500
₹5,000
Venugopal Manghat - 4.21 Yr.
Essel Long Term Advantage Fund
Growth
Fund Details
₹500
₹500
Aditya Mulki - 1.97 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
28 Feb 19₹10,000
29 Feb 20₹9,397
28 Feb 21₹12,554
28 Feb 22₹18,380
28 Feb 23₹20,116
29 Feb 24₹30,582
Growth of 10,000 investment over the years.
Essel Long Term Advantage Fund
Growth
Fund Details
DateValue
28 Feb 19₹10,000
29 Feb 20₹10,717
28 Feb 21₹12,689
28 Feb 22₹14,415
28 Feb 23₹14,663
29 Feb 24₹19,212

Detailed Assets & Holdings Comparison

Asset Allocation
L&T Emerging Businesses Fund
Growth
Fund Details
Asset ClassValue
Cash1.8%
Equity98.2%
Equity Sector Allocation
SectorValue
Industrials33.72%
Basic Materials15.84%
Consumer Cyclical14.05%
Technology10.5%
Financial Services8.66%
Real Estate6.37%
Health Care4.85%
Consumer Defensive2.52%
Energy0.86%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Apar Industries Ltd (Industrials)
Equity, Since 31 Mar 17 | APARINDS
3%₹444 Cr701,601
Brigade Enterprises Ltd (Real Estate)
Equity, Since 31 Jul 19 | 532929
3%₹420 Cr4,094,400
↑ 302,782
Sonata Software Ltd (Technology)
Equity, Since 31 Jul 18 | SONATSOFTW
3%₹376 Cr4,896,490
KPIT Technologies Ltd (Technology)
Equity, Since 30 Sep 21 | KPITTECH
2%₹339 Cr2,188,200
Birlasoft Ltd (Technology)
Equity, Since 31 Aug 20 | BSOFT
2%₹336 Cr3,958,708
↓ -459,235
EIH Ltd (Consumer Cyclical)
Equity, Since 31 May 17 | 500840
2%₹329 Cr10,023,622
KEI Industries Ltd (Industrials)
Equity, Since 31 Jan 20 | KEI
2%₹315 Cr985,358
Ratnamani Metals & Tubes Ltd (Basic Materials)
Equity, Since 30 Nov 17 | RATNAMANI
2%₹311 Cr870,422
K.P.R. Mill Ltd (Consumer Cyclical)
Equity, Since 28 Feb 15 | KPRMILL
2%₹291 Cr3,686,897
↓ -1,294,742
Maharashtra Seamless Ltd (Basic Materials)
Equity, Since 31 Dec 16 | MAHSEAMLES
2%₹275 Cr2,607,628
Asset Allocation
Essel Long Term Advantage Fund
Growth
Fund Details
Asset ClassValue
Cash3.34%
Equity96.66%
Equity Sector Allocation
SectorValue
Financial Services26.5%
Technology16.17%
Industrials11.12%
Health Care10.01%
Consumer Defensive8.65%
Consumer Cyclical8.63%
Basic Materials7.79%
Energy4.61%
Communication Services3.17%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Infosys Ltd (Technology)
Equity, Since 30 Apr 20 | INFY
7%₹4 Cr25,000
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Dec 15 | HDFCBANK
5%₹3 Cr21,500
↓ -3,000
Reliance Industries Ltd (Energy)
Equity, Since 31 Dec 19 | RELIANCE
5%₹3 Cr10,268
↓ -2,500
Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 28 Feb 21 | SUNPHARMA
5%₹3 Cr20,500
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Mar 16 | ICICIBANK
4%₹3 Cr26,609
Tata Motors Ltd (Consumer Cyclical)
Equity, Since 28 Feb 21 | TATAMOTORS
4%₹2 Cr28,000
Hindustan Aeronautics Ltd Ordinary Shares (Industrials)
Equity, Since 30 Sep 22 | HAL
4%₹2 Cr7,900
SBI Life Insurance Company Limited (Financial Services)
Equity, Since 31 Jan 22 | SBILIFE
3%₹2 Cr13,500
↑ 2,000
Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Jan 20 | BHARTIARTL
3%₹2 Cr16,000
Home First Finance Co India Ltd --- (Financial Services)
Equity, Since 30 Jun 22 | HOMEFIRST
3%₹2 Cr17,760

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.

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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