Table of Contents
Nippon India Small Cap Fund (Formerly known as Reliance Small Cap Fund) and Aditya Birla Sun Life Small Cap Fund both belong to the small-cap category of Equity Funds. Small cap funds invest their corpus in shares of start-ups or small sized companies whose Market capitalization is below INR 500 Crores. Small-cap shares are considered to be a good investment for long-term. These companies are generally start-ups who are in the nascent stage of development.
In addition, these companies are considered to have good growth potentials in the future. Though both Reliance/Nippon India Small Cap Fund Vs Birla Sun Life Small Cap Fund belong to the same category, yet; there are differences between both the schemes based on the current NAV, AUM, Minimum SIP investment, and other parameters. So, let us understand the differences between both the schemes.
Nippon India Small Cap Fund is an open-ended small-cap scheme that was launched on September 16, 2010. This scheme is managed by and a part of Nippon India Mutual Fund. The objective of this scheme is to attain long-term Capital growth generated from a Portfolio of equity and equity-related securities predominantly belonging to the small-cap category. It also invests a certain portion of the fund money in fixed Income instruments to generate consistent returns. The fund managers of Nippon India Small Cap Fund are Mr. Samir Rachh and Mr. Dhrumil Shah. As on March 31, 2018, some of the top holdings of Reliance/Nippon India Small Cap Fund included Navin Fluorine International Limited, Cyient Limited, RBL Bank Limited, VIP Industries Limited, and Tejas Networks Limited.
From October 2019, Reliance Mutual Fund has been renamed as Nippon India Mutual Fund. Nippon Life has acquired majority (75%) stakes in Reliance Nippon Asset Management (RNAM). The company will continue to run its operations without any change in structure and management.
Aditya Birla Sun Life Small Cap Fund (earlier known as Aditya Birla Sun Life Small & mid cap fund) is an open-ended small-cap scheme. The scheme was launched on May 30, 2007. The scheme’s objective is to attain growth and capital appreciation by Investing in equity and equity-related instruments mainly belonging to the small category. ABSL Small Cap Fund is managed by Mr. Jayesh Gandhi. As on March 31, 2018, some of the top holdings of this Birla Sun Life Mutual Fund’s scheme included CG Power & Industrial Solutions Limited, Gujrat State Petronet Limited, PNC Infratech Limited, and Tata Metaliks Limited. Aditya Birla Sun Life Small Cap Fund invests a minimum of 70% of its assets in small and companies.
Though both Nippon India/Reliance Small Cap Fund and Birla Sun Life Small Cap Fund belong to the same category yet there exist differences between both the schemes on account of AUM, performance, and other parameters. So, let’s understand the differences between both the schemes that are divided into four sections, namely, basics section, performance section, yearly performance section, and other details section.
Current NAV, scheme category, and Fincash Rating are some of the elements that form part of the basics section. Current NAV comparison shows that there is a little difference between the NAVs of both the schemes. As on April 20, 2018, the NAV of Reliance Small Cap Fund was approximately INR 46 while of ABSL Small Cap Fund was approximately INR 42. The next comparable Factor is, Fincash Rating, which reveals that Nippon India Small Cap Fund is rated as 4-Star and Birla Sun Life Small Cap Fund is rated as 5-Star. The next parameter is scheme category, which reveals that both the schemes belong to the same category, that is, Small-Cap. The summary of the comparable elements forming part of basics section is tabulated 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 Nippon India Small Cap Fund
Growth
Fund Details ₹89.6879 ↑ 1.31 (1.49 %) ₹23,910 on 28 Feb 23 16 Sep 10 ☆☆☆☆ Equity Small Cap 6 Moderately High 1.86 0.52 1.58 10.05 Not Available 0-1 Years (1%),1 Years and above(NIL) Aditya Birla Sun Life Small Cap Fund
Growth
Fund Details ₹48.7363 ↑ 0.79 (1.64 %) ₹2,902 on 28 Feb 23 31 May 07 ☆☆☆☆☆ Equity Small Cap 1 Moderately High 2.13 -0.3 0 0 Not Available 0-365 Days (1%),365 Days and above(NIL)
Performance Section analyses the differences in the Compounded Annual Growth Rate or CAGR returns of both the schemes which are compared at different intervals. These intervals include 1 Month Return, 6 Month Return, 3 Year Return and Returns Since Inception. The overall comparison of the performance section shows that Reliance Small Cap Fund has performed better in almost all the instances as compared to ABSL Small Cap Fund. The summary 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 Nippon India Small Cap Fund
Growth
Fund Details -1% -3% 0.8% 7.3% 49.2% 15.7% 19.1% Aditya Birla Sun Life Small Cap Fund
Growth
Fund Details -3% -5.8% -5.1% -4.4% 34.2% 4% 10.4%
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Absolute Returns generated by both the schemes for a particular year is compared in the yearly performance section. It is the third section in comparison of both the schemes. With respect to the comparison of absolute returns between both the schemes, it can be said that Reliance Small Cap Fund leads the race. The table given below shows the comparison summary of the yearly performance section.
Parameters Yearly Performance 2022 2021 2020 2019 2018 Nippon India Small Cap Fund
Growth
Fund Details 6.5% 74.3% 29.2% -2.5% -16.7% Aditya Birla Sun Life Small Cap Fund
Growth
Fund Details -6.5% 51.4% 19.8% -11.5% -22.6%
AUM, Minimum SIP and lumpsum amount, and exit load are the comparable elements of other details section. It is the last section in the comparison of both the schemes. To begin with the minimum SIP investment, it can be said that there is a difference between the SIP amount of both the schemes. For Reliance Mutual Fund’s scheme, the SIP amount is INR 100 and for ABSL Mutual Fund’s scheme, it is INR 1,000. Similarly, the lumpsum amount for both the schemes is also different. For Reliance Small Cap Fund, the minimum lumpsum amount is INR 5,000 and for ABSL Small Cap Fund it is INR 1,000. There is also a drastic difference between the AUM of both the schemes. As on March 31, 2018, the AUM of Nippon India Small Cap Fund was approximately INR 6,545 Crores while of ABSL Small Cap Fund it was approximately INR 2,089 Crores. The summary comparison of other details section is tabulated as follows.
Parameters Other Details Min SIP Investment Min Investment Fund Manager Nippon India Small Cap Fund
Growth
Fund Details ₹100 ₹5,000 Samir Rachh - 6.16 Yr. Aditya Birla Sun Life Small Cap Fund
Growth
Fund Details ₹1,000 ₹1,000 Vishal Gajwani - 0.92 Yr.
Nippon India Small Cap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 28 Feb 18 ₹10,000 28 Feb 19 ₹8,055 29 Feb 20 ₹8,463 28 Feb 21 ₹12,369 28 Feb 22 ₹17,427 28 Feb 23 ₹19,697 Aditya Birla Sun Life Small Cap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 28 Feb 18 ₹10,000 28 Feb 19 ₹7,601 29 Feb 20 ₹7,143 28 Feb 21 ₹9,980 28 Feb 22 ₹11,965 28 Feb 23 ₹12,001
Nippon India Small Cap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 3.02% Equity 96.98% Equity Sector Allocation
Sector Value Industrials 25.46% Consumer Cyclical 16.66% Basic Materials 15.18% Financial Services 14.17% Consumer Defensive 7.97% Technology 7.24% Health Care 5.35% Energy 1.53% Communication Services 1.34% Utility 0.5% Real Estate 0.47% Top Securities Holdings / Portfolio
Name Holding Value Quantity Tube Investments of India Ltd Ordinary Shares (Consumer Cyclical)
Equity, Since 30 Apr 18 | TIINDIA4% ₹906 Cr 3,267,559 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK2% ₹432 Cr 2,700,000 KPIT Technologies Ltd (Technology)
Equity, Since 30 Jun 19 | KPITTECH2% ₹395 Cr 4,756,932 Bank of Baroda (Financial Services)
Equity, Since 31 Mar 21 | 5321342% ₹366 Cr 23,045,248
↓ -2,000,000 NIIT Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | NIITLTD1% ₹352 Cr 11,094,453
↑ 455,900 Bajaj Electricals Ltd (Consumer Cyclical)
Equity, Since 31 Mar 16 | BAJAJELEC1% ₹334 Cr 3,062,071 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Sep 21 | LT1% ₹334 Cr 1,583,030 Zydus Wellness Ltd (Consumer Defensive)
Equity, Since 31 Aug 16 | ZYDUSWELL1% ₹332 Cr 2,324,428
↑ 104,406 Balrampur Chini Mills Ltd (Consumer Defensive)
Equity, Since 28 Feb 19 | 5000381% ₹332 Cr 9,291,212 Fine Organic Industries Ltd Ordinary Shares (Basic Materials)
Equity, Since 30 Jun 18 | FINEORG1% ₹326 Cr 703,759
↑ 98,382 Aditya Birla Sun Life Small Cap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 5.68% Equity 94.32% Equity Sector Allocation
Sector Value Consumer Cyclical 21.01% Industrials 20.53% Financial Services 14.34% Basic Materials 11.22% Consumer Defensive 8.13% Technology 7.04% Health Care 5.6% Communication Services 2.89% Real Estate 2.84% Utility 0.13% Top Securities Holdings / Portfolio
Name Holding Value Quantity JK Cement Ltd (Basic Materials)
Equity, Since 31 Mar 18 | JKCEMENT3% ₹96 Cr 346,400 Hitachi Energy India Ltd Ordinary Shares (Technology)
Equity, Since 30 Sep 20 | POWERINDIA3% ₹74 Cr 223,165 CCL Products (India) Ltd (Consumer Defensive)
Equity, Since 31 May 20 | CCL2% ₹70 Cr 1,271,522
↓ -114,661 Cholamandalam Financial Holdings Ltd (Financial Services)
Equity, Since 31 Dec 18 | CHOLAHLDNG2% ₹62 Cr 1,072,811 Go Fashion (India) Ltd (Consumer Cyclical)
Equity, Since 30 Nov 21 | 5434012% ₹62 Cr 672,066
↑ 119,095 Axis Bank Ltd (Financial Services)
Equity, Since 31 Jan 22 | 5322152% ₹59 Cr 693,565 Craftsman Automation Ltd (Consumer Cyclical)
Equity, Since 31 Mar 21 | CRAFTSMAN2% ₹57 Cr 172,216 Campus Activewear Ltd (Consumer Cyclical)
Equity, Since 30 Apr 22 | 5435232% ₹56 Cr 1,389,542
↑ 46,577 Endurance Technologies Ltd (Consumer Cyclical)
Equity, Since 30 Apr 20 | ENDURANCE2% ₹54 Cr 429,463 VIP Industries Ltd (Consumer Cyclical)
Equity, Since 31 May 21 | VIPIND2% ₹52 Cr 812,526
As a result, it can be concluded that both Nippon India Small Cap Fund and Aditya Birla Sun Life Small Cap Fund both differ on various parameters. Therefore, individuals should be careful before investing in any of the Mutual Fund schemes. They should understand the modalities of the scheme completely and check whether it is in-line with their investment objectives. This will help the individuals to attain their objectives on time within their given parameters.
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