L&T Midcap Fund Vs Aditya Birla Sun Life Midcap Fund

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

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 Midcap Fund

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.

L&T Midcap Fund Vs Aditya Birla Sun Life 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

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.

Performance Section

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.

Yearly Performance Section

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.

Other Details Section

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.

Growth of 10k Investments over the years