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Fincash » L&T Emerging Businesses Vs Franklin India Smaller Companies Fund

L&T Emerging Businesses Fund Vs Franklin India Smaller Companies Fund

Updated on May 18, 2022 , 609 views

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
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
₹42.309 ↑ 0.87   (2.10 %)
₹8,014 on 30 Apr 22
12 May 14
Equity
Small Cap
2
High
1.95
1.91
0
0
Not Available
0-1 Years (1%),1 Years and above(NIL)
Franklin India Smaller Companies Fund
Growth
Fund Details
₹82.4092 ↑ 0.89   (1.10 %)
₹7,014 on 30 Apr 22
13 Jan 06
Equity
Small Cap
11
Moderately High
1.96
1.74
-0.61
6.2
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
Performance1 Month
3 Month
6 Month
1 Year
3 Year
5 Year
Since launch
L&T Emerging Businesses Fund
Growth
Fund Details
-6.7%
-3.4%
-5.8%
24.4%
21.3%
13%
19.7%
Franklin India Smaller Companies Fund
Growth
Fund Details
-8%
-6.6%
-11.5%
15%
15.7%
9.2%
13.8%

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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 Performance2021
2020
2019
2018
2017
L&T Emerging Businesses Fund
Growth
Fund Details
77.4%
15.5%
-8.1%
-13.7%
66.5%
Franklin India Smaller Companies Fund
Growth
Fund Details
56.4%
18.7%
-5%
-17.4%
43.5%

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 DetailsMin SIP Investment
Min Investment
Fund Manager
L&T Emerging Businesses Fund
Growth
Fund Details
₹500
₹5,000
Venugopal Manghat - 2.37 Yr.
Franklin India Smaller Companies Fund
Growth
Fund Details
₹500
₹5,000
R. Janakiraman - 15.09 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 17₹10,000
30 Apr 18₹12,749
30 Apr 19₹10,730
30 Apr 20₹7,477
30 Apr 21₹14,296
30 Apr 22₹20,035
Growth of 10,000 investment over the years.
Franklin India Smaller Companies Fund
Growth
Fund Details
DateValue
30 Apr 17₹10,000
30 Apr 18₹11,584
30 Apr 19₹10,023
30 Apr 20₹6,959
30 Apr 21₹12,782
30 Apr 22₹16,757

Detailed Assets & Holdings Comparison

Asset Allocation
L&T Emerging Businesses Fund
Growth
Fund Details
Asset ClassValue
Cash2.08%
Equity97.92%
Equity Sector Allocation
SectorValue
Industrials31.03%
Consumer Cyclical20.29%
Basic Materials17.08%
Technology9.42%
Consumer Defensive7.37%
Real Estate6.45%
Health Care3.07%
Financial Services2.8%
Energy0.39%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
K.P.R. Mill Ltd (Consumer Cyclical)
Equity, Since 28 Feb 15 | KPRMILL
7%₹528 Cr8,382,009
↓ -510,625
Grindwell Norton Ltd (Industrials)
Equity, Since 30 Sep 17 | GRINDWELL
4%₹289 Cr1,684,948
Balrampur Chini Mills Ltd (Consumer Defensive)
Equity, Since 31 Jul 19 | BALRAMCHIN
3%₹257 Cr5,801,745
↓ -562,985
E I D Parry India Ltd (Consumer Defensive)
Equity, Since 31 Jan 20 | EIDPARRY
3%₹209 Cr3,933,689
↑ 1,889
RHI Magnesita India Ltd (Industrials)
Equity, Since 31 Aug 18 | RHIM
3%₹208 Cr3,425,917
Brigade Enterprises Ltd (Real Estate)
Equity, Since 31 Jul 19 | BRIGADE
2%₹196 Cr4,311,022
Sonata Software Ltd (Technology)
Equity, Since 31 Jul 18 | SONATSOFTW
2%₹176 Cr2,338,967
Birlasoft Ltd (Technology)
Equity, Since 31 Aug 20 | BSOFT
2%₹173 Cr4,170,543
Carborundum Universal Ltd (Industrials)
Equity, Since 31 Jul 16 | CARBORUNIV
2%₹166 Cr2,159,700
↓ -50,000
Supreme Petrochem Ltd (Basic Materials)
Equity, Since 30 Sep 16 | 500405
2%₹155 Cr1,694,075
Asset Allocation
Franklin India Smaller Companies Fund
Growth
Fund Details
Asset ClassValue
Cash3.56%
Equity96.44%
Equity Sector Allocation
SectorValue
Industrials26.15%
Financial Services15.46%
Consumer Cyclical15.29%
Basic Materials11.78%
Health Care6.32%
Real Estate6.25%
Consumer Defensive5.92%
Technology3.88%
Communication Services3.48%
Energy1.71%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Deepak Nitrite Ltd (Basic Materials)
Equity, Since 31 Jan 16 | DEEPAKNTR
5%₹323 Cr1,387,967
↓ -100,000
Brigade Enterprises Ltd (Real Estate)
Equity, Since 30 Jun 14 | BRIGADE
5%₹317 Cr6,950,570
↓ -201,154
KPIT Technologies Ltd (Technology)
Equity, Since 31 Aug 20 | KPITTECH
3%₹226 Cr4,077,593
GHCL Ltd (Basic Materials)
Equity, Since 30 Sep 16 | GHCL
3%₹206 Cr3,333,472
CCL Products (India) Ltd (Consumer Defensive)
Equity, Since 30 Apr 19 | CCL
3%₹206 Cr5,051,976
J.B. Chemicals & Pharmaceuticals Ltd (Healthcare)
Equity, Since 30 Jun 14 | JBCHEPHARM
3%₹200 Cr1,161,988
K.P.R. Mill Ltd (Consumer Cyclical)
Equity, Since 31 Jan 19 | KPRMILL
3%₹199 Cr3,160,269
↓ -120,091
Equitas Holding Ltd (Financial Services)
Equity, Since 30 Apr 16 | EQUITAS
3%₹192 Cr17,172,603
Tube Investments of India Ltd Ordinary Shares (Consumer Cyclical)
Equity, Since 30 Sep 19 | TIINDIA
3%₹187 Cr1,000,416
Blue Star Ltd (Industrials)
Equity, Since 31 Jan 15 | BLUESTARCO
3%₹186 Cr1,633,713
↓ -50,000

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.

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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