Fincash » L&T Emerging Businesses Vs Franklin India Smaller Companies Fund
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L&T Emerging Businesses Fund Vs Franklin India Smaller Companies Fund
L&T Emerging Businesses Fund and Franklin India Smaller Companies Fund both the schemes belong to the small-cap category of Equity Funds. L&T Emerging Businesses Fund is offered by L&T Mutual Fund while; Franklin India Smaller Companies Fund is a part of Franklin Templeton Mutual Fund. Small cap funds are the schemes whose accumulated fund money is invested in schemes of small-cap companies. These companies form the bottom of the pyramid when companies are segregated on the Basis of Market capitalization. These companies are generally start-ups or companies in early stages of development. Small Cap Companies are considered to have a good scope of developments. Though both L&T Emerging Businesses Fund and Franklin India Smaller Companies Fund belong to the same category yet; there are a lot of differences between them. So, let’s understand these differences these schemes through this article.
About L&T Emerging Businesses Fund
L&T Emerging Businesses Fund is offered by L&T Mutual Fund under the small-cap category. It is an open-ended scheme and the inception date being May 13, 2014. The investment objective of the scheme is to attain Capital growth in the long-term by Investing in equity and equity-related instruments of predominantly small-cap companies. L&T Emerging Businesses Fund uses S&P BSE Small Cap Index to form its Portfolio.
As on January 31, 2018, some of the small-cap shares that form part of L&T Emerging Businesses Fund’s portfolio include Carborundum Universal Limited, Supreme Industries Limited, Max Financial Services Limited, City Union Bank Limited, and Centrum Electronics Limited.
This scheme is suitable for investors who are willing to earn higher returns by investing in small-cap shares.
Overview of Franklin India Smaller Companies Fund
Franklin Templeton Mutual Fund manages Franklin India Smaller Companies Fund. This scheme was launched in the year 2006. The investment objective of this scheme is to achieve capital appreciation in the long-term by predominantly investing in shares of small-cap companies.
As on January 31, 2018, some of the shares that were part of the scheme’s portfolio consisted of Finolex Cables Limited, Voltas Limited, Deepak Nitrite Limited, and Nesco Limited.
This scheme aims to recognize companies that are likely to grow and be market leaders in the future. This scheme is suitable for long-term investments with a tenure of five years or more.
L&T Emerging Businesses Fund Vs Franklin India Smaller Companies Fund
Though both L&T Emerging Businesses Fund and Franklin India Smaller Companies Fund belong to the same category yet there exists differences between them. So, let us compare and analyze the differences between both the schemes that are classified into four sections, namely, Basics Section, Performance Section, Yearly Performance Section, and Other Details Section.
Basics Section
The Basics Section compares parameters such as Category of the Scheme, AUM, expense ratio, Fincash Ratings, and Current NAV. To begin with the Scheme’s category it can be said that both the scheme belongs to the same category that is, Equity Mid & Small-cap.
As per Fincash Ratings, L&T Emerging Businesses Fund is rated 5-Star and Franklin India Smaller Companies Fund is rated 4-Star.
The summary of basics section is summarized in the table given below.
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 ₹46.3245 ↓ -0.59 (-1.25 %) ₹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) Franklin India Smaller Companies Fund
Growth
Fund Details ₹94.6298 ↓ -0.89 (-0.93 %) ₹7,309 on 28 Feb 23 13 Jan 06 ☆☆☆☆ Equity Small Cap 11 Moderately High 1.9 0.49 0.24 9.21 Not Available 0-1 Years (1%),1 Years and above(NIL)
Performance Section
The Performance Section compares the returns earned by both the schemes at different time intervals such as 3 Month Return, 1 Year Return, and Since Inception Return. Here, the Compounded Annual Growth Rate or CAGR returns are compared between both the schemes. A bird’s eye view on the returns of both the schemes shows that at many time intervals the returns earned by L&T Emerging Businesses Fund is higher than returns of Franklin India Smaller Companies Fund. However, in case of 5 Year Return, there is no data available for L&T Emerging Business Fund as the scheme was launched in the year 2014. The table given below summarizes the performance section of both the schemes.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch L&T Emerging Businesses Fund
Growth
Fund Details -1.8% 3.2% -2.2% 3.7% 49.4% 11.8% 18.9% Franklin India Smaller Companies Fund
Growth
Fund Details -1.7% 3.3% 0.9% 8.4% 44% 10.4% 14%
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Yearly Performance Section
The comparison of absolute returns between both the schemes for a particular year is done in the yearly performance section. Even in this section, it can be said that the performance of L&T Emerging Businesses Fund is better. The summary of Yearly Performance Section between both the schemes is tabulated as follows.
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% Franklin India Smaller Companies Fund
Growth
Fund Details 3.6% 56.4% 18.7% -5% -17.4%
Other Details Section
This is the last section in comparison of both the funds. The parameters forming part of this section include Minimum SIP and Lumpsum Investment. With respect to Minimum SIP and Lumpsum Investment, it can be said that both the funds have same SIP and lumpsum amount. The minimum SIP investment for both the schemes is INR 500 while the minimum lumpsum investment is INR 5,000.
The summary of other details section is tabulated as follows.
L&T Emerging Businesses Fund is jointly managed by Mr. S. N. Lahiri and Mr. Karan Desai.
Franklin India Smaller Companies Fund is jointly managed by Mr. R. Janakiraman, Mr. Hari Shyamsundar, and Mr. Srikesh Nair.
Parameters Other Details Min SIP Investment Min Investment Fund Manager L&T Emerging Businesses Fund
Growth
Fund Details ₹500 ₹5,000 Venugopal Manghat - 3.13 Yr. Franklin India Smaller Companies Fund
Growth
Fund Details ₹500 ₹5,000 R. Janakiraman - 12.01 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 Franklin India Smaller Companies Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 28 Feb 18 ₹10,000 28 Feb 19 ₹8,219 29 Feb 20 ₹7,968 28 Feb 21 ₹10,921 28 Feb 22 ₹14,089 28 Feb 23 ₹15,825
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 Franklin India Smaller Companies Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 4.67% Equity 95.33% Equity Sector Allocation
Sector Value Industrials 25.38% Financial Services 18.8% Consumer Cyclical 15.02% Basic Materials 9.34% Consumer Defensive 6.54% Health Care 6.11% Real Estate 5.92% Technology 3.7% Communication Services 2.33% Energy 1.4% Top Securities Holdings / Portfolio
Name Holding Value Quantity Brigade Enterprises Ltd (Real Estate)
Equity, Since 30 Jun 14 | 5329294% ₹312 Cr 6,800,570 Deepak Nitrite Ltd (Basic Materials)
Equity, Since 31 Jan 16 | DEEPAKNTR4% ₹261 Cr 1,387,967 J.B. Chemicals & Pharmaceuticals Ltd (Healthcare)
Equity, Since 30 Jun 14 | JBCHEPHARM3% ₹227 Cr 1,111,988 Equitas Holding Ltd (Financial Services)
Equity, Since 30 Apr 16 | 5398443% ₹209 Cr 17,172,603 Karur Vysya Bank Ltd (Financial Services)
Equity, Since 31 Oct 12 | 5900033% ₹208 Cr 19,398,917 Jyothy Labs Ltd (Consumer Defensive)
Equity, Since 31 Dec 15 | 5329263% ₹200 Cr 9,746,119
↓ -65,454 CCL Products (India) Ltd (Consumer Defensive)
Equity, Since 30 Apr 19 | CCL3% ₹190 Cr 3,506,545
↓ -163,774 ICICI Bank Ltd (Financial Services)
Equity, Since 28 Feb 21 | ICICIBANK3% ₹188 Cr 2,259,945 Blue Star Ltd (Industrials)
Equity, Since 31 Jan 15 | BLUESTARCO3% ₹181 Cr 1,473,713 Carborundum Universal Ltd (Industrials)
Equity, Since 31 Dec 14 | CARBORUNIV2% ₹176 Cr 1,812,883
Thus, from the above pointers, it can be said that both the schemes differ on a number of parameters though they belong to the same category. As a consequence, one should be very careful while investing in a scheme by understanding its modalities completely. In addition, people should also check whether the scheme’s methodology helps them accomplish their objectives. Moreover, they can even consult a financial advisor. This will help them to ensure that the money invested is safe and it paves way for wealth creation.
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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