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Fincash » L&T Emer Businesses Vs ABSL Small Cap Fund

L&T Emerging Businesses Fund Vs Aditya Birla Sun Life Small Cap Fund

Updated on May 14, 2024 , 1774 views

L&T Emerging Businesses Fund and Aditya Birla Sun Life Small Cap Fund both the schemes belong to the same category of small-cap fund. In short, Small cap funds are the schemes that invest the corpus in the shares of companies whose Market capitalization is less than INR 500 Crores. These companies are generally start-ups or are in their nascent stages of development. These companies are considered to have good growth potentials and chances to generate good returns in the long-run. Though both L&T Emerging Businesses Fund and ABSL Small Cap Fund belong to the same category, nevertheless; they differ on account of various parameters. So, let’s understand the differences between both the schemes.

L&T Emerging Businesses Fund

This scheme of L&T Mutual Fund was incepted on May 13, 2014, and is offered under the small-cap category. The investment objective of this scheme is to generate long-term Capital growth from a diversified Portfolio consisting of equity-related securities predominantly focusing on small-cap companies. Mr. S. N. Lahiri and Mr. Karan Desai are the Fund managers managing the L&T Emerging Businesses Fund. L&T Emerging Businesses Fund uses S&P BSE Small Cap TRI Index as its yardstick to construct its portfolio. Based on the scheme’s Asset Allocation, it invests around 50-100% in equity and equity-related instruments of small cap companies while the remaining in fixed Income and money market instruments. Some of the key benefits of L&T Emerging Businesses Fund include style diversifier, suitable for investors seeking higher returns, and an experienced investment team.

Aditya Birla Sun Life Small Cap Fund (Erstwhile Aditya Birla Sun Life Small & Midcap Fund)

Aditya Birla Sun Life Small Cap Fund (earlier known as Aditya Birla Sun Life Small & Midcap Fund) is managed and offered by Aditya Birla Sun Life Mutual Fund under the small-cap category. This scheme was launched on May 30, 2007. The objective of this scheme is to attain growth and appreciation in capital by Investing in equity and equity-related instruments of companies belonging to the small and mid-cap sector. Mr. Jayesh Gandhi is the sole fund manager managing the ABSL Small Cap Fund. As on March 31, 2018, some of the top holdings of this Birla Sun Life Mutual Fund’s scheme include Johnson Controls, CG Power & Industrial Solutions Limited, Gujrat State Petronet Limited, and Tata Metaliks Limited. This scheme is suitable for individuals seeking for long-term capital growth by investing in equity and equity-related instruments of small cap companies.

L&T Emerging Businesses Fund Vs Aditya Birla Sun Life Small Cap Fund

Though both the schemes belong to the same category, yet; they differ on account of numerous parameters. So, let’s understand the differences between these schemes by comparing the parameters that are divided into four sections, namely, basics section, performance section, yearly performance section, and other details section.

Basics Section

Current NAV, Fincash Rating, and scheme category are some of the elements that form part of the basics section. 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. 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 L&T Emerging Businesses Fund was approximately INR 28 while of ABSL Small Cap Scheme was nearly INR 42. With respect to Fincash Rating, it can be said that, both the schemes are rated as 5-Star Schemes. The table given below shows the summary 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
₹77.228 ↑ 0.96   (1.26 %)
₹13,401 on 31 Mar 24
12 May 14
Equity
Small Cap
2
High
1.84
2.51
0.63
-3.95
Not Available
0-1 Years (1%),1 Years and above(NIL)
Aditya Birla Sun Life Small Cap Fund
Growth
Fund Details
₹80.0737 ↑ 1.46   (1.86 %)
₹4,444 on 31 Mar 24
31 May 07
Equity
Small Cap
1
Moderately High
2.08
2.44
0
0
Not Available
0-365 Days (1%),365 Days and above(NIL)

Performance Section

The comparison of Compounded Annual Growth Rate or CAGR returns is done in the performance section. These returns are compared at different intervals such as 3 Month Return, 1 Year Return, 3 Year Return, and 5 Year Return. The comparison of CAGR returns reveals that, in most of the instances, the returns generated by L&T Emerging Businesses Fund is higher than the performance of ABSL Small Cap Fund. The table given below shows the summary comparison of the performance section.

Parameters
Performance1 Month
3 Month
6 Month
1 Year
3 Year
5 Year
Since launch
L&T Emerging Businesses Fund
Growth
Fund Details
5.5%
5.8%
17.3%
49%
32.3%
27.1%
22.5%
Aditya Birla Sun Life Small Cap Fund
Growth
Fund Details
4.6%
5.7%
14.8%
43.2%
20.7%
19.2%
12.8%

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Yearly Performance Section

Yearly Performance section is the third section in the comparison of both the schemes. It analyses the difference in the absolute returns generated by both the schemes for a particular year. The comparison of absolute returns also reveals that in most instances, L&T Emerging Businesses Fund has done well. The summarized comparison of the yearly performance section is tabulated 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%
Aditya Birla Sun Life Small Cap Fund
Growth
Fund Details
39.4%
-6.5%
51.4%
19.8%
-11.5%

Other Details Section

It is the last section in the comparison of both the schemes. The comparable elements that form part of other details section include AUM, minimum SIP investment, and minimum lumpsum investment. The comparison of AUM reveals that both the schemes differ on account of AUM. As on March 31, 2018, the AUM of L&T Emerging Businesses Fund was around INR 4,404 Crores while of Aditya Birla Sun Life Small Cap Fund was nearly INR 2,089 Crores. It can be said that both the schemes also differ on account of minimum SIP and lumpsum investment. With respect to minimum SIP amount, in case of L&T Mutual Fund, it is INR 500 while for ABSL Mutual Fund, it is INR 1,000. In the same manner, the minimum lumpsum amount for L&T’s scheme is INR 5,000 while for ABSL’s scheme is INR 1,000. The table given below summarizes the comparison of other details section.

Parameters
Other DetailsMin SIP Investment
Min Investment
Fund Manager
L&T Emerging Businesses Fund
Growth
Fund Details
₹500
₹5,000
Venugopal Manghat - 4.29 Yr.
Aditya Birla Sun Life Small Cap Fund
Growth
Fund Details
₹1,000
₹1,000
Vishal Gajwani - 1.49 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 Apr 19₹10,000
30 Apr 20₹6,968
30 Apr 21₹13,324
30 Apr 22₹18,672
30 Apr 23₹20,595
30 Apr 24₹31,468
Growth of 10,000 investment over the years.
Aditya Birla Sun Life Small Cap Fund
Growth
Fund Details
DateValue
30 Apr 19₹10,000
30 Apr 20₹6,603
30 Apr 21₹12,791
30 Apr 22₹15,015
30 Apr 23₹15,187
30 Apr 24₹22,897

Detailed portfolio Comparison

Asset Allocation
L&T Emerging Businesses Fund
Growth
Fund Details
Asset ClassValue
Cash2.64%
Equity97.36%
Equity Sector Allocation
SectorValue
Industrials31.58%
Basic Materials14.56%
Consumer Cyclical14.41%
Technology10.45%
Financial Services9.58%
Real Estate6.78%
Health Care5.05%
Consumer Defensive2.53%
Energy1.06%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Apar Industries Ltd (Industrials)
Equity, Since 31 Mar 17 | 532259
3%₹443 Cr635,400
↓ -33,000
EIH Ltd (Consumer Cyclical)
Equity, Since 31 May 17 | 500840
3%₹388 Cr8,627,473
Brigade Enterprises Ltd (Real Estate)
Equity, Since 31 Jul 19 | 532929
3%₹362 Cr3,866,279
↓ -100,000
Sonata Software Ltd (Technology)
Equity, Since 31 Jul 18 | 532221
3%₹354 Cr4,896,490
KEI Industries Ltd (Industrials)
Equity, Since 31 Jan 20 | 517569
2%₹328 Cr947,670
KPIT Technologies Ltd (Technology)
Equity, Since 30 Sep 21 | 542651
2%₹325 Cr2,188,200
K.P.R. Mill Ltd (Consumer Cyclical)
Equity, Since 28 Feb 15 | 532889
2%₹299 Cr3,586,897
NCC Ltd (Industrials)
Equity, Since 28 Feb 21 | NCC
2%₹262 Cr11,291,100
Century Textiles & Industries Ltd (Basic Materials)
Equity, Since 30 Sep 22 | 500040
2%₹262 Cr1,607,279
Sobha Ltd (Real Estate)
Equity, Since 31 Mar 17 | 532784
2%₹249 Cr1,721,853
Asset Allocation
Aditya Birla Sun Life Small Cap Fund
Growth
Fund Details
Asset ClassValue
Cash3.29%
Equity96.71%
Equity Sector Allocation
SectorValue
Industrials29.63%
Consumer Cyclical18.82%
Financial Services10.46%
Basic Materials9.55%
Technology8.93%
Health Care6.88%
Real Estate5.2%
Consumer Defensive5.02%
Utility1.4%
Communication Services0.82%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Hitachi Energy India Ltd Ordinary Shares (Technology)
Equity, Since 30 Sep 20 | 543187
3%₹127 Cr181,671
↓ -41,494
R R Kabel Ltd (Industrials)
Equity, Since 30 Sep 23 | 543981
2%₹107 Cr692,435
↓ -47,612
TD Power Systems Ltd (Industrials)
Equity, Since 30 Jun 23 | 533553
2%₹106 Cr3,571,925
↑ 42,549
JK Cement Ltd (Basic Materials)
Equity, Since 31 Mar 18 | JKCEMENT
2%₹106 Cr259,374
↓ -87,026
Navin Fluorine International Ltd (Basic Materials)
Equity, Since 31 Jul 20 | 532504
2%₹104 Cr333,005
↑ 72,054
TeamLease Services Ltd (Industrials)
Equity, Since 30 Jun 23 | TEAMLEASE
2%₹95 Cr344,961
↓ -44,589
Sanofi India Ltd (Healthcare)
Equity, Since 31 Jul 21 | 500674
2%₹93 Cr115,226
↓ -33,883
Go Fashion (India) Ltd (Consumer Cyclical)
Equity, Since 30 Nov 21 | 543401
2%₹86 Cr711,151
↓ -206,536
BEML Ltd (Industrials)
Equity, Since 28 Feb 18 | 500048
2%₹79 Cr247,970
Brigade Enterprises Ltd (Real Estate)
Equity, Since 30 Jun 21 | 532929
2%₹78 Cr834,929
↓ -188,688

Thus, in a nutshell, it can be said that both the schemes differ on account of various parameters. As a consequence, individuals should be careful while investing in any of the schemes. They should understand the modalities of the scheme completely before investing. They should also check whether the scheme is in-line with their investment objective. This will help them to attain their objectives 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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dfdfsf, posted on 22 Nov 18 8:50 AM

good article

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