L&T Midcap Fund Vs ICICI Prudential MidCap Fund

L&T Midcap Fund and ICICI Prudential MidCap Fund both the schemes are a part of Mid-cap category of Equity Fund. In simple terms, mid cap funds are the Mutual Fund schemes that invest their corpus in equity and equity-related securities of mid-cap companies. The Market capitalization of these companies Range between INR 500 – INR 10,000 Crores. The share prices of mid-cap companies fluctuate less as compared to small-cap schemes. These companies are a notch below large-cap companies in terms of market capitalization. There are a number of schemes under mid-cap category offered by different fund houses. However, these schemes differ with respect to each other on various parameters. So, let us understand the differences between L&T Midcap Fund and ICICI Prudential MidCap Fund through this article.

L&T Midcap Fund

L&T Midcap Fund can be an apt choice for individuals looking for Capital appreciation by having exposure in mid-cap companies that form part of Nifty Free Float Midcap 100 Index. Based on the Asset Allocation objective, this scheme of L&T Mutual Fund invests around 80-100% of its fund money in equity and equity-related instruments while a maximum of 20% of its corpus in fixed Income and money market securities. The various parameters that L&T Midcap Fund looks for while choosing a stock for investment include management quality, competitive position, and valuations. This scheme was launched in the year 2004 and is jointly managed by Mr. Vihang Naik and Mr. S. N. Lahiri. As of 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.

ICICI Prudential MidCap Fund

ICICI Prudential MidCap Fund’s investment objective is to generate capital appreciation from an active portfolio that primarily consists of midcap stocks. Some of the key benefits of this scheme are it helps individuals to take the advantage of mid-cap stocks that have potentials of higher capital appreciation. Additionally, the scheme also complements a portfolio that is primarily focused on large-cap stocks. Mr. Mittul Kalawadia and Mr. Mrinal Singh are the joint fund managers of ICICI Prudential MidCap Fund. The scheme uses Nifty Midcap 100 Index as its primary benchmark and Nifty 50 Index as its additional benchmark to construct its portfolio. Some of the top holdings of ICICI Prudential MidCap Fund as of March 31, 2018, include Exide Industries Limited, Tata Chemicals Limited, Fortis Healthcare Limited, and Engineers India Limited.

L&T Midcap Fund Vs ICICI Prudential MidCap Fund

The differences between L&T Midcap Fund and ICICI Prudential MidCap Fund are classified into four sections, namely, basics section, performance section, yearly performance section, and other details sections. These sections are explained as follows.

Basics Section

It is the first section in the comparison of both the schemes. The parameters forming part of the basics section include current NAV, Fincash Rating, and scheme category. With respect to Fincash Rating, it can be said that L&T Midcap Fund is a 4-Star scheme and ICICI Prudential MidCap Fund is a 2-Star scheme. The comparison of scheme category states that both the schemes are a part of Equity Mid & small cap Category. Similarly, the comparison of current NAV also reveals a difference between the schemes. As of May 03, 2018, the NAV of L&T Midcap Fund was approximately INR 146 while of ICICI Prudential MidCap Fund was around INR 102. The table given below summarizes the comparison of this section.

Performance Section

Being the second section in the comparison, it analyzes the differences in the Compounded Annual Growth Rate or CAGR returns between the schemes at different intervals. These intervals include 1 Month Return, 6 Month Return, 3 Year Return, and Return since Inception. The comparison of CAGR returns states that in almost all the instances, L&T Midcap Fund leads the race. The summary comparison of the performance section is tabulated as follows.

Yearly Performance Section

The comparison of absolute returns generated by both the schemes for a particular year is done in the yearly performance section. The comparison of absolute returns states that in certain years ICICI Prudential MidCap Fund leads the race while in others L&T Midcap Fund leads the race. The table given below summarizes the comparison of the yearly performance section.

Other Details Section

It is the last section in the performance that includes elements such as AUM, minimum SIP investment, minimum lumpsum investment, and so on. The comparison of minimum lumpsum investment states that the lumpsum amount for both the schemes is same, that is, INR 5,000. With respect to minimum SIP investment, it can be said that the SIP amount for L&T Midcap Fund is INR 500, while for ICICI Prudential MidCap Fund is INR 1,000. Even the comparison of AUM for both the schemes, reveals a significant difference. the AUM of L&T Midcap Fund was around INR 2,403 Crores and of ICICI Prudential MidCap Fund was around INR 1,450 Crores, as of March 31, 2018. The exit load for both the schemes is same. The summary of other details section is as follows.

Growth of 10k Investments over the years