Table of Contents
L&T Midcap Fund and Invesco India Mid Cap Fund both the schemes belong to the mid-cap category of Equity Funds. Though these schemes belong to the same category, nevertheless; there are numerous differences between them. In short, mid cap funds invest their fund money in equity and equity-related instruments of mid-cap companies. These companies form the middle of the pyramid when stocks are classified on the Basis of Market capitalization. Since mid-cap companies are more focused and specialized they tend to respond faster to innovations. In many instances, mid-cap funds have outperformed large-cap and their stock prices are less volatile as compared to Small cap funds. Though there are a number of schemes in a given category of Mutual Fund yet; there are differences between them. So, let us understand the differences between L&T Midcap Fund and Invesco India Mid Cap Fund through this article.
L&T Midcap Fund uses Nifty Freefloat Midcap 100 Index to construct its basket of assets. The parameters used by this scheme of L&T Mutual Fund to select its stocks are management quality, competitive position, and valuations. The scheme’s objective is to aim for Capital appreciation in the long-term by predominantly Investing in stocks of mid-cap companies. Sundaram Finance Limited, Berger Paints India Limited, Graphite India Limited, and the Federal Bank Limited are some of the holdings of L&T Midcap Fund’s Portfolio as of March 31, 2018. Mr. S. N. Lahiri and Mr. Vihang Naik are the joint fund managers of L&T Midcap Fund. L&T Midcap Fund, based on its Asset Allocation objective, puts around 80-100% of the fund money in equity and equity-related securities.
Invesco India Mid Cap Fund is offered and managed by Invesco Mutual Fund. This scheme is can be a good choice for investors seeking for investments in equity and equity-related instruments of mid-cap companies thereby; attaining capital appreciation. One of the key features of this scheme is, it is a dedicated midcap fund wherein; the investments are made in companies that are expected to benefit from the country’s long-term Economic Growth. Invesco India Mid Cap Fund uses Nifty Midcap 100 Index as its benchmark to construct its portfolio. Some of the holdings of Invesco India Mid Cap Fund as of March 2018, are Ajanta Pharma Limited, MRF Limited, United Breweries Limited, and Piramal Enterprises Limited. Invesco India Mutual Fund’s this scheme uses bottom-up approach for stock selection.
The parameters based on which L&T Midcap Fund and Invesco India Mid Cap Fund are classified into four sections, namely, basics section, performance section, yearly performance section, and other details section. The explanation of each of these sections is as follows.
It is the first section in the comparison that includes parameters such as current NAV, Fincash Rating, and scheme category. The comparison of current NAV states that both the schemes differ considerably on account of NAV. The NAV of L&T Midcap Fund was approximately INR 146 and of Invesco India Mid Cap Fund was around INR 49 as of May 03, 2018. On the basis of Fincash Rating, it can be said that L&T Mutual Fund’s scheme is rated as 4-Star and Invesco’s Mutual Fund scheme is rated as 2-Star. However, on account of scheme category, both the schemes belong to the same domain of Equity Mid & Small-Cap. The comparison of the basics section is 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 Essel Long Term Advantage Fund
Growth
Fund Details ₹25.5974 ↑ 0.16 (0.61 %) ₹63 on 29 Feb 24 30 Dec 15 Equity ELSS Moderately High 0 2.14 -1.17 -2.73 Not Available NIL Invesco India Mid Cap Fund
Growth
Fund Details ₹129.05 ↑ 0.89 (0.69 %) ₹4,240 on 29 Feb 24 19 Apr 07 ☆☆ Equity Mid Cap 38 Moderately High 2.08 3.16 0 0 Not Available 0-1 Years (1%),1 Years and above(NIL)
This section compares the CAGR or Compounded Annual Growth Rate returns of both the schemes at different time intervals. Some of these time intervals are 1 Month Return, 3 Month Return, 5 Year Return, and Return since Inception. The analysis of performance section reveals that in almost all the instances, L&T Midcap Fund leads the race. The comparison of the performance section is as shown in the table given below.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch Essel Long Term Advantage Fund
Growth
Fund Details -1.8% 0.9% 8.8% 32.9% 14.9% 12.2% 12.1% Invesco India Mid Cap Fund
Growth
Fund Details 1% 7.8% 19.5% 55.1% 23.9% 21.4% 16.3%
Talk to our investment specialist
The comparison of absolute returns earned by both the schemes for a particular year is done in this yearly performance section. The comparison of yearly performance section also states that for many years, L&T Midcap Fund has performed better as compared to Invesco India Mid Cap Fund. The table given below summarizes the comparison of the yearly performance section.
Parameters Yearly Performance 2023 2022 2021 2020 2019 Essel Long Term Advantage Fund
Growth
Fund Details 24.1% -2% 29.4% 8.5% 7.9% Invesco India Mid Cap Fund
Growth
Fund Details 34.1% 0.5% 43.1% 24.4% 3.8%
It is the last section in the comparison that includes elements like AUM, minimum SIP investment, minimum lumpsum investment, and exit load. The exit load for both the schemes is same. Moreover, the minimum SIP and lumpsum investment are also same for both the schemes wherein; the SIP amount is INR 500 and lumpsum amount is INR 5,000 respectively. However, there is a difference between the AUM of both the schemes. As of March 31, 2018, the AUM of L&T Midcap Fund was around INR 2,403 Crores and of Invesco India Mid Cap Fund was around INR 171 Crores. The table given below shows the comparison summary of the other details section.
Parameters Other Details Min SIP Investment Min Investment Fund Manager Essel Long Term Advantage Fund
Growth
Fund Details ₹500 ₹500 Aditya Mulki - 1.97 Yr. Invesco India Mid Cap Fund
Growth
Fund Details ₹500 ₹5,000 Aditya Khemani - 0.31 Yr.
Essel Long Term Advantage Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 28 Feb 19 ₹10,000 29 Feb 20 ₹10,717 28 Feb 21 ₹12,689 28 Feb 22 ₹14,415 28 Feb 23 ₹14,663 29 Feb 24 ₹19,212 Invesco India Mid Cap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 28 Feb 19 ₹10,000 29 Feb 20 ₹11,446 28 Feb 21 ₹15,036 28 Feb 22 ₹17,937 28 Feb 23 ₹18,742 29 Feb 24 ₹27,895
Essel Long Term Advantage Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 3.34% Equity 96.66% Equity Sector Allocation
Sector Value Financial Services 26.5% Technology 16.17% Industrials 11.12% Health Care 10.01% Consumer Defensive 8.65% Consumer Cyclical 8.63% Basic Materials 7.79% Energy 4.61% Communication Services 3.17% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 30 Apr 20 | INFY7% ₹4 Cr 25,000 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Dec 15 | HDFCBANK5% ₹3 Cr 21,500
↓ -3,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Dec 19 | RELIANCE5% ₹3 Cr 10,268
↓ -2,500 Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 28 Feb 21 | SUNPHARMA5% ₹3 Cr 20,500 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Mar 16 | ICICIBANK4% ₹3 Cr 26,609 Tata Motors Ltd (Consumer Cyclical)
Equity, Since 28 Feb 21 | TATAMOTORS4% ₹2 Cr 28,000 Hindustan Aeronautics Ltd Ordinary Shares (Industrials)
Equity, Since 30 Sep 22 | HAL4% ₹2 Cr 7,900 SBI Life Insurance Company Limited (Financial Services)
Equity, Since 31 Jan 22 | SBILIFE3% ₹2 Cr 13,500
↑ 2,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Jan 20 | BHARTIARTL3% ₹2 Cr 16,000 Home First Finance Co India Ltd --- (Financial Services)
Equity, Since 30 Jun 22 | HOMEFIRST3% ₹2 Cr 17,760 Invesco India Mid Cap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 0.07% Equity 99.93% Equity Sector Allocation
Sector Value Consumer Cyclical 26.16% Financial Services 22.47% Industrials 14.84% Health Care 11.13% Technology 7.99% Real Estate 5.89% Basic Materials 4.76% Utility 4.47% Consumer Defensive 2.23% Top Securities Holdings / Portfolio
Name Holding Value Quantity Trent Ltd (Consumer Cyclical)
Equity, Since 30 Apr 21 | 5002515% ₹212 Cr 546,046 Max Healthcare Institute Ltd Ordinary Shares (Healthcare)
Equity, Since 31 Dec 22 | MAXHEALTH4% ₹178 Cr 2,246,434 The Federal Bank Ltd (Financial Services)
Equity, Since 31 Oct 22 | FEDERALBNK4% ₹173 Cr 11,480,924
↑ 379,188 Cholamandalam Investment and Finance Co Ltd (Financial Services)
Equity, Since 31 Mar 21 | CHOLAFIN4% ₹167 Cr 1,537,576
↑ 155,753 L&T Finance Holdings Ltd (Financial Services)
Equity, Since 31 Dec 23 | L&TFH4% ₹165 Cr 9,883,840
↑ 204,597 Apollo Tyres Ltd (Consumer Cyclical)
Equity, Since 30 Nov 22 | 5008774% ₹151 Cr 2,903,958
↑ 251,465 Kalyan Jewellers India Ltd (Consumer Cyclical)
Equity, Since 31 Dec 23 | KALYANKJIL3% ₹143 Cr 3,611,063
↑ 810,796 Max Financial Services Ltd (Financial Services)
Equity, Since 30 Nov 23 | 5002713% ₹134 Cr 1,383,185
↑ 96,625 Prestige Estates Projects Ltd (Real Estate)
Equity, Since 30 Nov 23 | PRESTIGE3% ₹132 Cr 1,134,386
↑ 97,183 Mankind Pharma Ltd (Healthcare)
Equity, Since 30 Apr 23 | 5439043% ₹128 Cr 600,883
Therefore, from the above-mentioned sections, it can be said that both the schemes differ on a number of parameters. Resultantly, individuals should be very careful before choosing any of the schemes for investment. They should check whether the scheme matches their investment objectives and understand its functioning completely. This will help individuals to attain their objectives on time and in a hassle-free manner.
You Might Also Like