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 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) Invesco India Mid Cap Fund
Growth
Fund Details ₹104.8 ↑ 0.72 (0.69 %) ₹3,293 on 31 Jul 23 19 Apr 07 ☆☆ Equity Mid Cap 38 Moderately High 2.08 1.45 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 L&T Midcap Fund
Growth
Fund Details 4.2% 15.2% 19.6% 20.9% 22.2% 11.3% 18.3% Invesco India Mid Cap Fund
Growth
Fund Details 2.3% 12.7% 20.7% 23.2% 25.5% 15.4% 15.5%
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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 2022 2021 2020 2019 2018 L&T Midcap Fund
Growth
Fund Details 1.1% 30.4% 19% -0.2% -12% Invesco India Mid Cap Fund
Growth
Fund Details 0.5% 43.1% 24.4% 3.8% -5.3%
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 L&T Midcap Fund
Growth
Fund Details ₹500 ₹5,000 Vihang Naik - 7.18 Yr. Invesco India Mid Cap Fund
Growth
Fund Details ₹500 ₹5,000 Pranav Gokhale - 5.43 Yr.
L&T Midcap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Aug 18 ₹10,000 31 Aug 19 ₹8,267 31 Aug 20 ₹9,115 31 Aug 21 ₹14,008 31 Aug 22 ₹14,368 31 Aug 23 ₹17,092 Invesco India Mid Cap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Aug 18 ₹10,000 31 Aug 19 ₹8,618 31 Aug 20 ₹9,967 31 Aug 21 ₹15,718 31 Aug 22 ₹16,822 31 Aug 23 ₹20,474
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 Invesco India Mid Cap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 1.69% Equity 98.31% Equity Sector Allocation
Sector Value Consumer Cyclical 31.12% Financial Services 17.47% Industrials 14.7% Basic Materials 11.3% Technology 9.41% Health Care 8.05% Consumer Defensive 2.75% Utility 2.04% Real Estate 1.48% Top Securities Holdings / Portfolio
Name Holding Value Quantity Trent Ltd (Consumer Cyclical)
Equity, Since 30 Apr 21 | 5002513% ₹102 Cr 496,357
↑ 16,975 Sundaram Fasteners Ltd (Consumer Cyclical)
Equity, Since 31 Jul 20 | SUNDRMFAST3% ₹88 Cr 694,844
↓ -24,727 Indian Hotels Co Ltd (Consumer Cyclical)
Equity, Since 30 Apr 22 | 5008503% ₹88 Cr 2,079,038
↑ 132,815 Max Healthcare Institute Ltd Ordinary Shares (Healthcare)
Equity, Since 31 Dec 22 | MAXHEALTH2% ₹82 Cr 1,397,430
↑ 85,339 PI Industries Ltd (Basic Materials)
Equity, Since 30 Nov 22 | PIIND2% ₹78 Cr 215,469
↑ 22,596 Coforge Ltd (Technology)
Equity, Since 31 Mar 22 | COFORGE2% ₹76 Cr 138,897 Abbott India Ltd (Healthcare)
Equity, Since 28 Feb 22 | ABBOTINDIA2% ₹73 Cr 31,755
↓ -983 Persistent Systems Ltd (Technology)
Equity, Since 31 Jan 21 | PERSISTENT2% ₹72 Cr 134,448
↑ 10,792 AU Small Finance Bank Ltd (Financial Services)
Equity, Since 31 May 23 | 5406112% ₹72 Cr 991,601
↑ 159,270 UNO Minda Ltd (Consumer Cyclical)
Equity, Since 31 Jul 19 | UNOMINDA2% ₹72 Cr 1,187,665
↑ 35,695
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.