Fincash » Nippon India Small Cap Vs L&T Emerging Businesses Fund
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Nippon India/Reliance Small Cap Fund Vs L&T Emerging Businesses Fund
Both Reliance small cap Fund and L&T Emerging Businesses Fund are small-cap category schemes offered by different fund houses. Though the category of both the schemes is same, yet they differ in terms of various factors such as performance, AUM, their current NAV and other related parameters. So, let us try to understand the differences between both the differences between Reliance Small Cap Fund and L&T Emerging Businesses Fund through this article.
About Nippon India/Reliance Small Cap Fund
Nippon India Small Cap Fund (Formerly known as Reliance Small Cap Fund) is offered by Nippon Mutual Fund and was incepted on September 16, 2010. The investment objective of the scheme is to attain long-term Capital growth by predominantly Investing the corpus in equity and equity-related instruments of small cap companies.
As on January 31, 2018, some of the stocks that constituted the top 10 holdings of Reliance Small Cap Fund’s Portfolio include Navin Fluorine International Limited, Deepak Nitrite Limited, RBL Bank Limited, and ITD Cementation India Limited.
Important Information
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.
About L&T Emerging Businesses Fund
L&T Emerging Businesses Fund is an open-ended equity scheme that aims for long-term capital appreciation. It tries to attain its objective by forming a diversified portfolio mainly consisting of equity and equity-related instruments of the small-cap category. This scheme was launched on May 13, 2014. This scheme uses S&P BSE Small Cap Index to construct its portfolio.
As on January 31, 2018, some of the top 10 holdings of L&T Emerging Businesses Fund constituted of HEG Limited, Supreme Industries Limited, NOCIL Limited, and Grindwell Norton Limited.
Nippon India Small Cap Fund Vs L&T Emerging Businesses Fund
The various comparison parameters between both these funds are classified into four sections. These sections are basics section, performance section, yearly performance section and other details section. So, let us understand how these funds are differentiated on the Basis of various parameters.
Basics Section
In this basics section, some of the comparable elements include Current NAV, Category, Fincash Ratings, AUM, expense ratio, and many more. To being with the category of both the schemes, they belong to the same category of Mid & Small-Cap Fund. With respect to Current NAV, it can be seen that the NAV of Nippon India/Reliance Small Cap Fund is higher as compared to L&T Emerging Businesses Fund.
As per Fincash Rating, we can see that L&T Emerging Businesses Fund has 5-Star Rating and Reliance Small Cap Fund has 4-Star Rating.
A summary of the parameters that are a part of the Basics Section is given below.
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 ₹89.8254 ↓ -0.90 (-1.00 %) ₹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) L&T Emerging Businesses Fund
Growth
Fund Details ₹46.3245 ↓ -0.59 (-1.25 %) ₹8,672 on 31 Jan 23 12 May 14 ☆☆☆☆☆ Equity Small Cap 2 High 1.87 -0.15 0.61 3.77 Not Available 0-1 Years (1%),1 Years and above(NIL)
Performance Section
This section compares the performance of both the schemes at different time periods. On a hindsight, it can be said that there is not much difference in the performance of both the funds at different time periods. Though in case of Performance since Inception, L&T Emerging Businesses Fund leads Nippon India/Reliance Small Cap Fund yet; in many other time periods, the performance of Nippon India Small Cap Fund has been better. With respect to 5 Year Returns, there is no data shown in case of L&T Emerging Businesses Fund as the fund has launched in May 2014. The table given below summarizes the data of performance section.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch Nippon India Small Cap Fund
Growth
Fund Details -1.6% 1.3% -1.5% 7.1% 53.1% 16.1% 19.2% L&T Emerging Businesses Fund
Growth
Fund Details -1.8% 3.2% -2.2% 3.7% 49.4% 11.8% 18.9%
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Yearly Performance
With respect to yearly performance, L&T Emerging Businesses Fund and Nippon India/Reliance Small Cap Fund both are almost performing the same. For the year 2016, however, L&T Emerging Businesses Fund performed better than Nippon India Small Cap Fund. The table given below shows the yearly performance of both the schemes.
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% L&T Emerging Businesses Fund
Growth
Fund Details 1% 77.4% 15.5% -8.1% -13.7%
Other Details Section
The other details section includes the differentiating parameters such as Minimum SIP and Lumpsum Investment. The minimum lumpsum investment in both the scheme is same that is, INR 5,000. However, the minimum SIP investment in case of Nippon India Mutual Fund is INR 100 and of L&T Emerging Businesses Fund is INR 500. The table showing the factors under other details section are listed below as follows.
The Fund managers managing the Nippon India Small Cap Fund are Mr. Samir Rachh and Mr. Dhrumil Shah.
Mr. S. N. Lahiri and Mr. Karan Desai are the fund managers managing L&T Emerging Businesses Fund.
Parameters Other Details Min SIP Investment Min Investment Fund Manager Nippon India Small Cap Fund
Growth
Fund Details ₹100 ₹5,000 Samir Rachh - 6.08 Yr. L&T Emerging Businesses Fund
Growth
Fund Details ₹500 ₹5,000 Venugopal Manghat - 3.13 Yr.
Growth of 10k Investments over the years
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 L&T Emerging Businesses Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 28 Feb 18 ₹10,000 28 Feb 19 ₹8,349 29 Feb 20 ₹7,845 28 Feb 21 ₹10,481 28 Feb 22 ₹15,346 28 Feb 23 ₹16,795
Detailed Assets & Holdings Comparison
Nippon India Small Cap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 3.3% Equity 96.7% Equity Sector Allocation
Sector Value Industrials 25.1% Consumer Cyclical 16.53% Basic Materials 15.54% Financial Services 15.32% Consumer Defensive 8.11% Technology 6.64% Health Care 5.35% Communication Services 1.46% Energy 0.58% Real Estate 0.48% Utility 0.37% Top Securities Holdings / Portfolio
Name Holding Value Quantity Tube Investments of India Ltd Ordinary Shares (Consumer Cyclical)
Equity, Since 30 Apr 18 | TIINDIA4% ₹853 Cr 3,267,559 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK2% ₹433 Cr 2,700,000 Bank of Baroda (Financial Services)
Equity, Since 31 Mar 21 | 5321342% ₹420 Cr 25,045,248 KPIT Technologies Ltd (Technology)
Equity, Since 30 Jun 19 | KPITTECH2% ₹363 Cr 4,756,932
↓ -687,985 Balrampur Chini Mills Ltd (Consumer Defensive)
Equity, Since 28 Feb 19 | BALRAMCHIN1% ₹351 Cr 9,291,212 NIIT Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | NIITLTD1% ₹347 Cr 10,638,553
↑ 240,569 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Sep 21 | LT1% ₹336 Cr 1,583,030 Timken India Ltd (Industrials)
Equity, Since 28 Feb 18 | 5221131% ₹334 Cr 1,067,270 Bajaj Electricals Ltd (Consumer Cyclical)
Equity, Since 31 Mar 16 | BAJAJELEC1% ₹329 Cr 3,062,071 Tejas Networks Ltd (Technology)
Equity, Since 30 Jun 17 | TEJASNET1% ₹327 Cr 5,763,697 L&T Emerging Businesses Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 1.7% Equity 98.3% Equity Sector Allocation
Sector Value Industrials 34.81% Basic Materials 17.04% Consumer Cyclical 15.6% Financial Services 9.15% Technology 7.18% Real Estate 5.69% Consumer Defensive 4.82% Health Care 2.66% Energy 1.27% Communication Services 0.08% Top Securities Holdings / Portfolio
Name Holding Value Quantity K.P.R. Mill Ltd (Consumer Cyclical)
Equity, Since 28 Feb 15 | KPRMILL3% ₹269 Cr 5,081,639 RHI Magnesita India Ltd (Industrials)
Equity, Since 31 Aug 18 | RHIM3% ₹235 Cr 3,018,479 Indian Bank (Financial Services)
Equity, Since 31 Jan 22 | 5328143% ₹230 Cr 7,556,600 Grindwell Norton Ltd (Industrials)
Equity, Since 30 Sep 17 | 5060763% ₹225 Cr 1,127,322 Carborundum Universal Ltd (Industrials)
Equity, Since 31 Jul 16 | CARBORUNIV3% ₹219 Cr 2,249,700 KEI Industries Ltd (Industrials)
Equity, Since 31 Jan 20 | KEI2% ₹215 Cr 1,329,400 JK Lakshmi Cement Ltd (Basic Materials)
Equity, Since 31 Oct 20 | JKLAKSHMI2% ₹209 Cr 2,845,600 E I D Parry India Ltd (Consumer Defensive)
Equity, Since 31 Jan 20 | EIDPARRY2% ₹207 Cr 3,804,620 Apar Industries Ltd (Industrials)
Equity, Since 31 Mar 17 | APARINDS2% ₹200 Cr 1,184,900 Ratnamani Metals & Tubes Ltd (Basic Materials)
Equity, Since 30 Nov 17 | RATNAMANI2% ₹195 Cr 880,422
Thus, we can conclude that both the schemes differ on various parameters. However, investors should be careful while choosing any scheme for investment. Individuals should check and confirm whether the scheme matches their investment objective or not. If required they can also consult a financial advisor and get their queries resolved before investing. This will help them to ensure that their money gives them the required results and the objectives are attained timely.
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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A nice and well detailed writeup.