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Fincash » L&T India Value Fund Vs Principal Multi Cap Growth Fund

L&T India Value Fund Vs Principal Multi Cap Growth Fund

Updated on May 24, 2020 , 211 views

L&T India value fund and Principal Multi Cap Growth Fund both the schemes form part of the same category of Diversified Funds, but they still have numerous differences between them. Diversified funds, in simple language, means the Equity Fund that invests its money across market capitalization i.e., large-cap, mid-cap and small cap. These schemes follow a value Investing or growth investing strategy. These schemes are a good investment option for medium and long-term tenure. Generally, diversified funds invest around 40-60% of their fund money in large-cap stocks, 10-40% in mid-cap stocks, and a maximum of 10% in small-cap stocks. So, let us understand the differences between both L&T India Value Fund and Principal Multi Cap Growth Fund by comparing various parameters through this article.

L&T India Value Fund

L&T India Value Fund’s investment objective is to generate long-term capital appreciation by mainly investing the money in stocks of various companies with a higher focus on undervalued securities. L&T India Value Fund was launched in the month of January 2010. The scheme uses S&P BSE 200 TRI Index as its benchmark to construct its portfolio. L&T India Value Fund is jointly managed by Mr. Venugopal Manghat and Mr. Karan Desai. Some of the key benefits of L&T India Value Fund are long-term wealth creator wherein; the scheme focuses on fundamentals. The next advantage is style diversification through which the scheme tries to focus on identifying the undervalued stocks. Based on the Asset Allocation objective of the scheme, it invests around 80-100% of its funds in equity and equity-related securities of Indian companies.

Principal Multi Cap Growth Fund (Erstwhile Principal Growth Fund)

Principal Multi Cap Growth Fund (earlier known as Principal Growth Fund) is a part of Principal Mutual Fund. This open-ended diversified fund invests its corpus across large, mid, and small-cap stocks. This fund is suitable for individuals seeking for long-term capital growth by having exposure in stocks of companies across market capitalization. The scheme uses Nifty 500 Index as its benchmark to construct its portfolio and is managed by Mr. P. V. K. Mohan. As on March 31, 2018, some of the constituents of Principal Multi Cap Growth Fund’s portfolio consisted of stocks like HDFC Bank Limited, Karur Vyasa Bank Limited, Dabur India Limited, Britannia Industries Limited, and Chambal Fertilizers and Chemicals Limited. Some of the aspects that Principal Multi Cap Growth Fund uses while selecting the stocks for investments include superior management quality, good growth potentials, financially sound companies, and sustainable competitive advantage.

L&T India Value Fund Vs Principal Multi Cap Growth Fund

Though both L&T India Value Fund and Principal Multi Cap Growth Fund belong to the same category, nevertheless; there are numerous differences between them. So, let us understand the differences between these schemes by comparing the parameters that are classified into four sections, as follows.

Basics Section

Scheme Category, current NAV, and Fincash Rating are some of the parameters 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 of Equity Diversified. With respect to the Fincash Rating, it can be said that L&T India Value Fund is a 5-Star rated scheme while Principal Multi Cap Growth Fund is a 4-Star rated scheme. However, the comparison of current NAV reveals a considerable difference between both the schemes. As on April 30, 2018, the NAV of L&T India Value Fund was approximately INR 38 while of Principal Multi Cap Growth Fund was around INR 150. The summary of the basics section is as follows.

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 India Value Fund
Growth
Fund Details
₹27.21 ↑ 0.11   (0.41 %)
₹5,710 on 30 Apr 20
8 Jan 10
Equity
Value
4
Moderately High
2.19
-0.5
-1.33
-1.62
Not Available
0-1 Years (1%),1 Years and above(NIL)
Principal Multi Cap Growth Fund
Growth
Fund Details
₹110.15 ↑ 0.09   (0.08 %)
₹582 on 30 Apr 20
25 Oct 00
Equity
Multi Cap
12
Moderately High
2.46
-0.54
-0.49
-1.75
Not Available
0-365 Days (1%),365 Days and above(NIL)

Performance Section

Performance section is the second section in the comparison that analyzes the differences in the CAGR or Compounded Annual Growth Rate returns of both the schemes. These CAGR returns are compared at various time intervals such as 1 Month Return, 6 Month Return, 3 Year Return, 5 Year Return, and Return Since Inception. The analysis of CAGR returns shows that in certain instances, Principal Multi Cap Growth Fund has done well while in others, L&T India Value Fund has performed better. 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 India Value Fund
Growth
Fund Details
0.8%
-24.6%
-23.8%
-25.7%
-7%
2.8%
10.1%
Principal Multi Cap Growth Fund
Growth
Fund Details
-1.7%
-24.4%
-22.6%
-23.9%
-4.6%
3.1%
13%

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Yearly Performance Section

Being the third section in the comparison, it analyses the differences in the absolute returns generated for a particular year by both the schemes. The comparison of the yearly performance section states that for certain years, L&T India Value Fund leads the race and in others, Principal Multi Cap Growth Fund leads the race. The summary comparison of yearly performance section is as shown in the table given below.

<app-compare-funds fund1="L&T India Value Fund" fund2="Principal Multi Cap Growth Fund sections="yperformance" head="false">

Other Details Section

Being the last section in the comparison, it includes elements such as AUM, minimum SIP investment, minimum lumpsum investment, and others. The minimum lumpsum investment for both the schemes is same, that is, INR 5,000. However, both the schemes differ significantly on account of AUM. As on March 31, 2018, the AUM of Principal Multi Cap Growth Fund was around INR 629 Crores and of L&T India Value Fund was nearly INR 7,347 Crores. The SIP Investment for both the schemes is also different. In case of L&T Mutual Fund’s scheme, the SIP amount is INR 500 and for Principal Mutual Fund’s scheme, it is INR 2,000. The table given below summarizes the comparison of other details section.

Parameters
Other DetailsMin SIP Investment
Min Investment
Fund Manager
L&T India Value Fund
Growth
Fund Details
₹500
₹5,000
Venugopal Manghat - 7.35 Yr.
Principal Multi Cap Growth Fund
Growth
Fund Details
₹100
₹5,000
Ravi Gopalakrishnan - 0.67 Yr.

Growth of 10k Investments over the years

Growth of 10,000 investment over the years.
L&T India Value Fund
Growth
Fund Details
DateValue
30 Apr 15₹10,000
30 Apr 16₹10,371
30 Apr 17₹14,565
30 Apr 18₹16,415
30 Apr 19₹15,313
30 Apr 20₹12,333
Growth of 10,000 investment over the years.
Principal Multi Cap Growth Fund
Growth
Fund Details
DateValue
30 Apr 15₹10,000
30 Apr 16₹9,937
30 Apr 17₹13,557
30 Apr 18₹16,269
30 Apr 19₹15,409
30 Apr 20₹12,862

Detailed Assets & Holdings Comparison

Asset Allocation
L&T India Value Fund
Growth
Fund Details
Asset ClassValue
Cash1.4%
Equity98.03%
Other0.57%
Equity Sector Allocation
SectorValue
Financial Services30.18%
Basic Materials17.47%
Energy9.73%
Technology8.19%
Consumer Cyclical7.98%
Industrials6.53%
Health Care6.34%
Consumer Defensive4.16%
Real Estate3.29%
Communication Services3.25%
Utility0.84%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 15 | RELIANCE
9%₹528 Cr3,600,900
↑ 3,600
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Sep 18 | HDFCBANK
7%₹401 Cr4,004,700
↑ 589,000
ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 11 | ICICIBANK
6%₹364 Cr9,573,800
↓ -527,900
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 May 16 | HDFC
5%₹278 Cr1,448,800
↑ 163,000
Infosys Ltd (Technology)
Equity, Since 31 Dec 10 | INFY
4%₹236 Cr3,296,700
Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 19 | BHARTIARTL
3%₹187 Cr3,640,800
Coromandel International Ltd (Basic Materials)
Equity, Since 31 Oct 17 | 506395
3%₹162 Cr2,730,800
Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 31 Mar 17 | SUNPHARMA
3%₹149 Cr3,217,700
↑ 1,568,300
Ipca Laboratories Ltd (Healthcare)
Equity, Since 31 Oct 19 | 524494
3%₹146 Cr904,700
HCL Technologies Ltd (Technology)
Equity, Since 31 Aug 16 | HCLTECH
2%₹135 Cr2,483,400
↓ -272,000
Asset Allocation
Principal Multi Cap Growth Fund
Growth
Fund Details
Asset ClassValue
Cash2.5%
Equity97.5%
Equity Sector Allocation
SectorValue
Financial Services30.67%
Technology11.4%
Basic Materials10.42%
Industrials9.7%
Consumer Cyclical9.42%
Energy8.91%
Consumer Defensive7.72%
Health Care5.7%
Communication Services3.48%
Utility0%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jul 09 | HDFCBANK
8%₹46 Cr454,230
Reliance Industries Ltd (Energy)
Equity, Since 31 Jan 05 | RELIANCE
8%₹45 Cr305,299
↑ 9,949
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 09 | ICICIBANK
6%₹38 Cr988,407
Infosys Ltd (Technology)
Equity, Since 30 Apr 08 | INFY
5%₹28 Cr397,354
Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Apr 14 | TCS
4%₹25 Cr123,360
Bharti Airtel Ltd (Communication Services)
Equity, Since 30 Nov 18 | BHARTIARTL
3%₹20 Cr393,338
Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 30 Apr 20 | 500696
3%₹20 Cr90,504
↑ 90,504
Treps 04-May-2020
CBLO/Reverse Repo | -
3%₹18 Cr
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Apr 08 | HDFC
3%₹17 Cr87,403
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Jan 16 | KOTAKBANK
3%₹15 Cr112,522

Therefore, from the above pointers, it can be stated that both the schemes differ on account of numerous parameters though they belong to the same category. As a consequence, individuals should be cautious before investing in any of the schemes. They should check whether the investment suits them or not. This will help them to attain their objectives on time and ensure that their investment is safe.

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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