Table of Contents
L&T Midcap Fund and Aditya Birla Sun Life Midcap Fund both the schemes belong to the mid-cap category of Equity Funds. mid cap funds in simple terms are the Mutual Fund schemes that invest their money in the stocks of companies having a Market capitalization between INR 500 – INR 10,000 Crores. Mid-cap schemes are considered to be a good long-term investment option. These companies have good growth potentials and if performed well, they can be the future large-cap companies. Though L&T Midcap Fund and Aditya Birla Sun Life Midcap Fund belong to the same category, yet; they differ on account of a number of differences. So, let’s understand the differences between them through this article.
L&T Midcap Fund’s investment objective is to attain Capital growth in the long-term by mainly Investing the pooled money in mid-cap stocks. The scheme selects its stocks for investment that form part of the Nifty Freefloat Midcap 100 Index to formulate its portfolio. Based on the Asset Allocation objective of the scheme, L&T Midcap Fund invests around 80-100% of the fund money in equity and equity-related securities and the remaining in fixed Income and money market instruments. The parameters that L&T Midcap Fund uses to select its stocks are management quality, competitive position, and valuations. L&T Midcap Fund is jointly managed by Mr. S. N. Lahiri and Mr. Vihang Naik. As on March 31, 2018, some of the constituents of L&T Midcap Fund’s portfolio included Sundaram Finance Limited, Berger Paints India Limited, Graphite India Limited, and the Federal Bank Limited.
Aditya Birla Sun Life (ABSL) Midcap Fund is a part of ABSL Mutual Fund and was incepted on October 02, 2002. This open-ended mid-cap fund can be an apt choice for individuals seeking long-term capital growth by investing in mid-cap stocks. The scheme aims to provide investors a chance to invest in mid-cap companies that can be potential leaders of tomorrow. The highlights of ABSL Midcap Fund are long-term capital growth and investment in stocks with higher growth potentials. TeamLease Services Limited, Mahindra CIE Automotive Limited, Bharat Electronics Limited, and Gujrat State Petronet Limited are some of the top 10 constituents of this scheme of ABSL Mutual Fund as on March 31, 2018. Mr. Jayesh Gandhi is the sole fund manager of ABSL Midcap Fund.
The various parameters that differentiate L&T Midcap Fund and ABSL Midcap Fund are classified into four sections, namely, basics section, performance section, yearly performance section, and other details section. These sections are explained as follows.
Basics section is the first section in the comparison of the schemes that includes parameters such as Fincash Rating, scheme category, and current NAV. To begin with the Fincash Rating, it can be said that L&T Midcap Fund is rated as 4-Star and ABSL Midcap Fund is rated as 3-Star. The comparison of scheme category reveals that both the schemes belong to the same category of Equity Mid & small cap. However, in case of NAV, both the schemes differ drastically. As on May 02, 2018, the NAV of L&T Mutual Fund’s scheme was nearly INR 147 while of ABSL Mutual Fund’s scheme was around INR 320. The summary comparison of the basics section is listed below as follows.
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 Midcap Fund
Growth
Fund Details ₹204.69 ↓ -0.12 (-0.06 %) ₹6,022 on 30 Jun 22 9 Aug 04 ☆☆☆☆ Equity Mid Cap 5 High 1.88 -0.52 0 0 Not Available 0-1 Years (1%),1 Years and above(NIL) Aditya Birla Sun Life Midcap Fund
Growth
Fund Details ₹461.39 ↑ 0.64 (0.14 %) ₹3,160 on 30 Jun 22 3 Oct 02 ☆☆☆ Equity Mid Cap 16 Moderately High 2.16 0.06 -0.71 3.75 Not Available 0-365 Days (1%),365 Days and above(NIL)
Being the second section, it compares the CAGR or Compounded Annual Growth Rate returns of both the schemes. These CAGR returns are compared at different time intervals such as 3 Year Return, 5 Year Return, and Return since Inception. On the Basis of performance, it can be said that, in most of the instances, L&T Midcap Fund leads the race. The table given below summarizes the comparison of the performance section.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch L&T Midcap Fund
Growth
Fund Details 9.1% 4.5% 0.8% 1.9% 20.1% 8.9% 18.3% Aditya Birla Sun Life Midcap Fund
Growth
Fund Details 9.7% 2.8% -3.8% 7.2% 21.7% 8.8% 21.3%
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This section compares the absolute returns generated by both the schemes for a particular year. The comparison of yearly performance section also shows that in most of the years, L&T Midcap Fund has performed better as compared to ABSL Midcap Fund. The comparison summary of the yearly performance section is tabulated as follows.
Parameters Yearly Performance 2021 2020 2019 2018 2017 L&T Midcap Fund
Growth
Fund Details 30.4% 19% -0.2% -12% 52.3% Aditya Birla Sun Life Midcap Fund
Growth
Fund Details 50.4% 15.5% -3.7% -16% 44.8%
The parameters forming part of this section includes AUM, minimum SIP and lumpsum investment, and exit load. Both the schemes differ on the basis of AUM. As on March 31, 2018, the AUM of L&T Midcap Fund 2,403 Crores and of ABSL Midcap Fund is around 2,229 Crores. The minimum SIP and lumpsum investment are also different for both the schemes. In case of L&T’s scheme, the SIP and lumpsum amounts are INR 500 and INR 5,000 respectively. However, for ABSL Midcap Fund, both SIP and lumpsum amounts are INR 1,000 only. The exit load of both the schemes are also same. The summary comparison of the other details section is tabulated as follows.
Parameters Other Details Min SIP Investment Min Investment Fund Manager L&T Midcap Fund
Growth
Fund Details ₹500 ₹5,000 Venugopal Manghat - 2.62 Yr. Aditya Birla Sun Life Midcap Fund
Growth
Fund Details ₹1,000 ₹1,000 Anil Shah - 2.26 Yr.
L&T Midcap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Jul 17 ₹10,000 31 Jul 18 ₹10,481 31 Jul 19 ₹9,012 31 Jul 20 ₹9,251 31 Jul 21 ₹14,822 31 Jul 22 ₹14,985 Aditya Birla Sun Life Midcap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Jul 17 ₹10,000 31 Jul 18 ₹10,074 31 Jul 19 ₹8,623 31 Jul 20 ₹8,006 31 Jul 21 ₹14,137 31 Jul 22 ₹14,955
L&T Midcap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 4.7% Equity 95.3% Equity Sector Allocation
Sector Value Industrials 18.99% Financial Services 15.89% Basic Materials 15.34% Consumer Cyclical 14.53% Health Care 13.38% Consumer Defensive 5.62% Technology 4.07% Utility 2.19% Communication Services 1.93% Real Estate 1.9% Energy 1.46% Top Securities Holdings / Portfolio
Name Holding Value Quantity Blue Dart Express Ltd (Industrials)
Equity, Since 31 Dec 17 | BLUEDART4% ₹265 Cr 339,223 Emami Ltd (Consumer Defensive)
Equity, Since 31 Aug 13 | 5311624% ₹222 Cr 5,275,057 Ratnamani Metals & Tubes Ltd (Basic Materials)
Equity, Since 31 Oct 15 | RATNAMANI3% ₹194 Cr 1,170,670
↓ -35,808 Bayer CropScience Ltd (Basic Materials)
Equity, Since 31 May 13 | 5062853% ₹193 Cr 385,382 Ipca Laboratories Ltd (Healthcare)
Equity, Since 30 Sep 19 | 5244943% ₹168 Cr 1,875,600 CRISIL Ltd (Financial Services)
Equity, Since 31 Mar 17 | CRISIL3% ₹167 Cr 508,000 Abbott India Ltd (Healthcare)
Equity, Since 31 May 18 | ABBOTINDIA3% ₹151 Cr 80,700 Mphasis Ltd (Technology)
Equity, Since 30 Apr 16 | 5262992% ₹147 Cr 640,579
↓ -56,605 Cummins India Ltd (Industrials)
Equity, Since 30 Apr 18 | 5004802% ₹144 Cr 1,404,620
↓ -419,880 Bosch Ltd (Consumer Cyclical)
Equity, Since 31 Oct 19 | 5005302% ₹138 Cr 90,899
↓ -7,201 Aditya Birla Sun Life Midcap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 3.79% Equity 96.21% Equity Sector Allocation
Sector Value Basic Materials 18.71% Financial Services 17.57% Consumer Cyclical 15.97% Industrials 14.48% Health Care 9.46% Technology 7.04% Utility 5.35% Consumer Defensive 3.27% Real Estate 2.19% Communication Services 2.17% Top Securities Holdings / Portfolio
Name Holding Value Quantity Gujarat Fluorochemicals Ltd Ordinary Shares (Basic Materials)
Equity, Since 30 Sep 19 | FLUOROCHEM4% ₹127 Cr 457,307 Mphasis Ltd (Technology)
Equity, Since 31 Mar 20 | 5262994% ₹126 Cr 548,427 Cholamandalam Investment and Finance Co Ltd (Financial Services)
Equity, Since 31 Dec 19 | CHOLAFIN4% ₹113 Cr 1,821,603 Coromandel International Ltd (Basic Materials)
Equity, Since 31 Aug 18 | 5063954% ₹111 Cr 1,167,738 Crompton Greaves Consumer Electricals Ltd (Consumer Cyclical)
Equity, Since 31 May 16 | CROMPTON3% ₹99 Cr 2,912,243 Cholamandalam Financial Holdings Ltd (Financial Services)
Equity, Since 31 Dec 14 | CHOLAHLDNG3% ₹86 Cr 1,448,702 Fortis Healthcare Ltd (Healthcare)
Equity, Since 31 May 17 | 5328433% ₹80 Cr 3,319,435
↑ 244,351 Voltas Ltd (Industrials)
Equity, Since 31 Aug 15 | VOLTAS3% ₹79 Cr 815,000 K.P.R. Mill Ltd (Consumer Cyclical)
Equity, Since 31 Aug 20 | KPRMILL2% ₹77 Cr 1,494,379 AIA Engineering Ltd (Industrials)
Equity, Since 31 Mar 21 | AIAENG2% ₹73 Cr 330,294
Thus, from the above-mentioned pointers, it can be said that both the schemes differ on numerous parameters in spite of belonging to the same category. As a result, individuals should be careful before investing in any of the schemes. Individuals should analyse the schemes thoroughly and check whether it matches their investment objective or not. If required, they can even take the financial opinion of a financial advisor. This will help individuals to attain their objectives on time and ensure that their investment is safe.
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