Table of Contents
L&T Midcap Fund and BNP Paribas Mid Cap Fund both the schemes differ on a number of parameters. These differences exist in spite of both the schemes being part of the same category of Equity Funds. mid cap funds invest their pooled money in stocks of companies being part of the mid-cap category. These companies are second-in-line in after large-cap companies in terms of their Market capitalization. Mid-cap companies are a good investment option for long-term investment. These schemes are a good option for investors having a long-term investment tenure. The market capitalization of mid-cap companies ranges between INR 500 – INR 10,000 Crores. Though there are a number of schemes in one category, nevertheless; numerous differences exist between them. So, let us understand the differences between L&T Midcap Fund and BNP Paribas Mid Cap Fund through this article.
L&T Midcap Fund is offered and managed by L&T Mutual Fund under the mid-cap category. This scheme was incepted on August 09, 2004 and uses Nifty Midcap 100 TRI Index to construct its Portfolio. The investment objective of this scheme of L&T Mutual Fund is to generate Capital appreciation by having exposure in stocks of mid-cap companies forming part of its benchmark index. As per the Asset Allocation objective, the scheme invests around 80-100% of its pooled money in equity and equity-related instruments while the remaining in fixed Income and money market instruments. L&T Midcap Fund is jointly managed by Mr. S. N. Lahiri and Mr. Vihang Naik. As of March 2018, some of the constituents of L&T Midcap Fund’s portfolio include Ramco Cements Limited, Graphite India Limited, AIA Engineering Limited, Engineers India Limited, and Avanti Feeds Limited.
BNP Paribas Mid Cap Fund is a part of BNP Paribas Mutual Fund and it uses Nifty Free Float Midcap 100 TRI as its benchmark to build its basket of assets. This scheme is suitable for individuals looking for individuals seeking exposure in mid and small capitalization segments along with wealth creation in the long-term. This scheme of BNP Paribas Mutual Fund allocates a minimum of 65% of its corpus in stocks of companies belonging to mid-cap companies. It strives to identify the companies that have good opportunities of growth in the long-term. In addition, it also ensures to identify the companies that are driven by the dynamic style of management and entrepreneurial flair. Mr. Abhijeet Dey and Mr. Karthikraj Lakshmanan are the joint fund managers of BNP Paribas Mid Cap Fund.
L&T Midcap Fund and BNP Paribas Mid Cap Fund differ on account of a number of parameters that are classified into four sections. These sections are basics section, performance section, yearly performance section, and other details section. The explanation of these sections is as follows.
This is the first section in the comparison of the schemes. The parameters forming part of this scheme is Current NAV, Fincash Rating, and scheme category. On the Basis of current NAV, it can be said that both the schemes differ considerably. The NAV of L&T Midcap Fund was approximately INR 146 and of BNP Paribas Mid Cap Fund was around INR 33 as of May 03, 2018. With respect to Fincash Rating, it can be said that L&T Mutual Fund’s scheme is rated as 4-Star while BNP Paribas Mutual Fund’s scheme is rated as 3-Star. On the basis of scheme category, both the schemes are a part of Equity Mid & small cap Category. The table given below shows the summarized comparison of the basics section.
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 ₹245.183 ↑ 1.87 (0.77 %) ₹7,920 on 31 Jul 23 9 Aug 04 ☆☆☆☆ Equity Mid Cap 5 High 1.85 1.35 -1.88 -0.79 Not Available 0-1 Years (1%),1 Years and above(NIL) BNP Paribas Mid Cap Fund
Growth
Fund Details ₹69.7878 ↑ 0.38 (0.55 %) ₹1,428 on 31 Jul 23 2 May 06 ☆☆☆ Equity Mid Cap 18 High 2.22 1.29 -1.01 -1.37 Not Available 0-12 Months (1%),12 Months and above(NIL)
Being the second section in the comparison, it analyzes the differences in the Compounded Annual Growth Rate or CAGR returns between the schemes. This CAGR returns are compared at different intervals such as 1 Year Return, 3 Year Return, 5 Year Return, and Return since Inception. The comparison of performance section shows that there is a significant difference between the returns generated by both the schemes. In most of the instances, the performance of L&T Midcap Fund leads the race. The summary comparison of the performance section is tabulated as follows.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch L&T Midcap Fund
Growth
Fund Details 4.2% 15.2% 19.6% 20.9% 22.2% 11.3% 18.3% BNP Paribas Mid Cap Fund
Growth
Fund Details 4% 14.5% 19.8% 20.9% 26.6% 15.8% 11.9%
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Being the third section in the comparison, it analyzes the differences in the absolute returns generated by both the schemes for a particular year. The comparison of absolute returns states that, in certain years, BNP Paribas Mid Cap Fund has performed better as compared to L&T Midcap Fund while in other years, L&T Midcap Fund had done well in comparison to BNP Paribas Mid Cap Fund. The comparison of yearly performance section is as follows.
Parameters Yearly Performance 2022 2021 2020 2019 2018 L&T Midcap Fund
Growth
Fund Details 1.1% 30.4% 19% -0.2% -12% BNP Paribas Mid Cap Fund
Growth
Fund Details 4.7% 41.5% 23.1% 5.2% -17.5%
AUM, minimum SIP investment, minimum lumpsum investment, and exit load are some of the parameters that form part of this last section in the comparison of the schemes. The SIP and lumpsum amount for both the schemes is same, that is, INR 500 and INR 5,000 respectively. Also, the exit load for both the schemes is same. However, there is a significant difference between the AUM of both the schemes. The AUM of L&T’s scheme was around INR 2,403 Crores and of BNP Paribas’s schemes was approximately INR 774 Crores, as of March 2018. The comparison of other details section is summarized in the table given below.
Parameters Other Details Min SIP Investment Min Investment Fund Manager L&T Midcap Fund
Growth
Fund Details ₹500 ₹5,000 Vihang Naik - 7.18 Yr. BNP Paribas Mid Cap Fund
Growth
Fund Details ₹300 ₹5,000 Shiv Chanani - 1.13 Yr.
L&T Midcap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 30 Sep 18 ₹10,000 30 Sep 19 ₹9,835 30 Sep 20 ₹10,619 30 Sep 21 ₹16,243 30 Sep 22 ₹15,969 30 Sep 23 ₹19,757 BNP Paribas Mid Cap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 30 Sep 18 ₹10,000 30 Sep 19 ₹10,189 30 Sep 20 ₹11,270 30 Sep 21 ₹19,030 30 Sep 22 ₹19,298 30 Sep 23 ₹23,722
L&T Midcap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 0.87% Equity 99.13% Equity Sector Allocation
Sector Value Top Securities Holdings / Portfolio
Name Holding Value Quantity Ratnamani Metals & Tubes Ltd (Basic Materials)
Equity, Since 31 Oct 15 | RATNAMANI3% ₹276 Cr 1,043,486 AIA Engineering Ltd (Industrials)
Equity, Since 31 Dec 16 | AIAENG3% ₹230 Cr 621,300 Sundaram Finance Ltd (Financial Services)
Equity, Since 30 Nov 13 | SUNDARMFIN2% ₹193 Cr 743,568 Abbott India Ltd (Healthcare)
Equity, Since 31 May 18 | ABBOTINDIA2% ₹186 Cr 80,700 Bosch Ltd (Consumer Cyclical)
Equity, Since 31 Oct 19 | 5005302% ₹179 Cr 96,253 3M India Ltd (Industrials)
Equity, Since 30 Sep 19 | 3MINDIA2% ₹176 Cr 56,500 Emami Ltd (Consumer Defensive)
Equity, Since 31 Aug 13 | 5311622% ₹174 Cr 3,326,025 Power Finance Corp Ltd (Financial Services)
Equity, Since 30 Jun 21 | 5328102% ₹174 Cr 6,690,600 CRISIL Ltd (Financial Services)
Equity, Since 31 Mar 17 | CRISIL2% ₹169 Cr 426,444 Godrej Properties Ltd (Real Estate)
Equity, Since 31 Mar 17 | GODREJPROP2% ₹164 Cr 995,400 BNP Paribas Mid Cap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 2.22% Equity 96.99% Debt 0.79% Equity Sector Allocation
Sector Value Financial Services 22.44% Industrials 17.08% Consumer Cyclical 16.91% Health Care 10.43% Basic Materials 7.61% Technology 5.56% Utility 5.51% Consumer Defensive 4.7% Energy 3.42% Real Estate 2.13% Communication Services 1.21% Top Securities Holdings / Portfolio
Name Holding Value Quantity The Federal Bank Ltd (Financial Services)
Equity, Since 31 Jul 16 | FEDERALBNK3% ₹43 Cr 3,000,000 Indian Bank (Financial Services)
Equity, Since 30 Jun 21 | 5328143% ₹42 Cr 1,100,000
↓ -150,000 Indian Hotels Co Ltd (Consumer Cyclical)
Equity, Since 31 Oct 21 | 5008502% ₹37 Cr 870,000 AIA Engineering Ltd (Industrials)
Equity, Since 31 Aug 18 | AIAENG2% ₹36 Cr 96,700
↓ -3,300 Lupin Ltd (Healthcare)
Equity, Since 28 Feb 22 | 5002572% ₹35 Cr 320,000 NHPC Ltd (Utilities)
Equity, Since 31 Mar 22 | NHPC2% ₹32 Cr 6,300,000 Phoenix Mills Ltd (Real Estate)
Equity, Since 31 Oct 22 | 5031002% ₹31 Cr 175,000 Zydus Lifesciences Ltd (Healthcare)
Equity, Since 31 Mar 23 | 5323212% ₹31 Cr 500,000 Ashok Leyland Ltd Shs Dematerialised (Industrials)
Equity, Since 31 Jul 21 | 5004772% ₹31 Cr 1,700,000 Thermax Ltd (Industrials)
Equity, Since 31 Dec 19 | THERMAX2% ₹31 Cr 110,000
Therefore, from the aforesaid parameters, it can be said that both the schemes differ on account of numerous parameters. Resultantly, individuals should be careful while choosing any of the schemes. They should check whether the scheme matches their investment objectives or not. Also, they must have a thorough understanding of the scheme chosen. This will help individuals to choose their objectives on time along with ensuring that their investment is safe.