L&T Midcap Fund Vs Invesco India Mid Cap Fund

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

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

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.

L&T India Midcap Fund Vs Invesco India Mid Cap Fund

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.

Basics Section

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.

Performance Section

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.

Yearly Performance Section

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.

Other Details Section

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.

Growth of 10k Investments over the years