Table of Contents
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.
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.
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.
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.
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 ₹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 Equity ELSS Moderately High 0 2.14 -1.17 -2.73 Not Available NIL
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 -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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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 2023 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%
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 - 4.21 Yr. Essel Long Term Advantage Fund
Growth
Fund Details ₹500 ₹500 Aditya Mulki - 1.97 Yr.
L&T Emerging Businesses Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 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 Essel Long Term Advantage Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 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
L&T Emerging Businesses Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 1.8% Equity 98.2% Equity Sector Allocation
Sector Value Industrials 33.72% Basic Materials 15.84% Consumer Cyclical 14.05% Technology 10.5% Financial Services 8.66% Real Estate 6.37% Health Care 4.85% Consumer Defensive 2.52% Energy 0.86% Top Securities Holdings / Portfolio
Name Holding Value Quantity Apar Industries Ltd (Industrials)
Equity, Since 31 Mar 17 | APARINDS3% ₹444 Cr 701,601 Brigade Enterprises Ltd (Real Estate)
Equity, Since 31 Jul 19 | 5329293% ₹420 Cr 4,094,400
↑ 302,782 Sonata Software Ltd (Technology)
Equity, Since 31 Jul 18 | SONATSOFTW3% ₹376 Cr 4,896,490 KPIT Technologies Ltd (Technology)
Equity, Since 30 Sep 21 | KPITTECH2% ₹339 Cr 2,188,200 Birlasoft Ltd (Technology)
Equity, Since 31 Aug 20 | BSOFT2% ₹336 Cr 3,958,708
↓ -459,235 EIH Ltd (Consumer Cyclical)
Equity, Since 31 May 17 | 5008402% ₹329 Cr 10,023,622 KEI Industries Ltd (Industrials)
Equity, Since 31 Jan 20 | KEI2% ₹315 Cr 985,358 Ratnamani Metals & Tubes Ltd (Basic Materials)
Equity, Since 30 Nov 17 | RATNAMANI2% ₹311 Cr 870,422 K.P.R. Mill Ltd (Consumer Cyclical)
Equity, Since 28 Feb 15 | KPRMILL2% ₹291 Cr 3,686,897
↓ -1,294,742 Maharashtra Seamless Ltd (Basic Materials)
Equity, Since 31 Dec 16 | MAHSEAMLES2% ₹275 Cr 2,607,628 Essel Long Term Advantage Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 3.34% Equity 96.66% Equity Sector Allocation
Sector Value Financial Services 26.5% Technology 16.17% Industrials 11.12% Health Care 10.01% Consumer Defensive 8.65% Consumer Cyclical 8.63% Basic Materials 7.79% Energy 4.61% Communication Services 3.17% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 30 Apr 20 | INFY7% ₹4 Cr 25,000 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Dec 15 | HDFCBANK5% ₹3 Cr 21,500
↓ -3,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Dec 19 | RELIANCE5% ₹3 Cr 10,268
↓ -2,500 Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 28 Feb 21 | SUNPHARMA5% ₹3 Cr 20,500 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Mar 16 | ICICIBANK4% ₹3 Cr 26,609 Tata Motors Ltd (Consumer Cyclical)
Equity, Since 28 Feb 21 | TATAMOTORS4% ₹2 Cr 28,000 Hindustan Aeronautics Ltd Ordinary Shares (Industrials)
Equity, Since 30 Sep 22 | HAL4% ₹2 Cr 7,900 SBI Life Insurance Company Limited (Financial Services)
Equity, Since 31 Jan 22 | SBILIFE3% ₹2 Cr 13,500
↑ 2,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Jan 20 | BHARTIARTL3% ₹2 Cr 16,000 Home First Finance Co India Ltd --- (Financial Services)
Equity, Since 30 Jun 22 | HOMEFIRST3% ₹2 Cr 17,760
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.