Fincash » Principal Emerging Bluechip Vs L&T India Value Fund
Table of Contents
Principal Emerging Bluechip Fund and L&T India value fund both belong to the diversified category of Equity Funds. Diversified Funds invest their corpus across Market capitalization i.e. large, mid and small cap. These schemes try to harness the opportunities in stocks forming part of various market capitalization and earn maximum returns for their investors. On a general note, diversified funds invest around 40-60% of their pooled money in large-cap stocks, 10-40% in mid-cap stocks, while the remaining in small-cap stocks. These schemes follow Value investing strategy wherein; they invest in stocks whose prices are lower in comparison to their performance, Earnings, growth potentials, and so on. Though Principal Emerging Bluechip Fund and L&T India Value Fund belong to the same category of equity funds nevertheless; there are differences between them. This article attempts to bring out such differences.
Principal Emerging Bluechip Fund is a part of Principal Mutual Fund that invests in both large-cap and mid-cap stocks. Based on the Asset Allocation of the scheme, it invests around 35-65% of its fund money in equity and equity-related instruments of large-cap and mid-cap companies respectively. While the remaining fund money is invested in either stocks of companies belonging to other market capitalization or in fixed Income and money market instruments to a maximum limit of 30%. Principal Emerging Bluechip Fund was launched on November 12, 2008, and uses S&P BSE 250 Large Midcap Index as its base to build its Portfolio. This scheme is suitable for individuals seeking Capital growth in the long-term by Investing in shares of large & mid-cap companies.
L&T India Value Fund is an open-ended diversified scheme offered by L&T Mutual Fund. This scheme was launched on January 08, 2010. The objective of L&T India Value Fund is to attain long-term capital appreciation that is generated from a diversified portfolio consisting of equity and equity-related schemes. The scheme uses S&P BSE 200 TRI Index as its benchmark to build its portfolio. Mr. Venugopal Mangat and Mr. Karan Desai jointly manage the L&T India Value Fund. As per the scheme’s asset allocation, it invests approximately around 80-100% of its corpus in shares of equity and equity-related securities and up to 20% of its corpus in Fixed Income and money market instruments. Some of the key benefits of L&T India Value Fund include long-term wealth creator, style diversification, and 360-degree research.
Principal Emerging Bluechip Fund and L&T India Value Fund differ on account of numerous parameters though they belong to the same category. So, let’s understand these differences between them that are categorized 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 comparable elements forming part of the basics section. The comparison of Fincash Rating reveals that both the schemes are rated as 5-Star schemes. Even comparing the scheme category, it can be said that both the schemes belong to the same category of Equity Diversified. However, there is a drastic difference between the NAV of both the schemes. As on April 24, 2018, the NAV of Principal Emerging Bluechip Fund was approximately INR 110 while of L&T India Value Fund was approximately INR 38. The table given below summarizes the comparison of the basics section.
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 Principal Emerging Bluechip Fund
Growth
Fund Details ₹183.316 ↑ 2.03 (1.12 %) ₹3,124 on 30 Nov 21 12 Nov 08 ☆☆☆☆☆ Equity Large & Mid Cap 1 Moderately High 2.08 2.74 0.22 2.18 Not Available 0-1 Years (1%),1 Years and above(NIL) L&T India Value Fund
Growth
Fund Details ₹65.086 ↓ -0.25 (-0.38 %) ₹8,088 on 30 Apr 23 8 Jan 10 ☆☆☆☆☆ Equity Value 4 Moderately High 1.85 0.3 0.89 5.31 Not Available 0-1 Years (1%),1 Years and above(NIL)
It is the second section in the comparison of both the schemes. This section compares the Compounded Annual Growth Rate or CAGR returns of both the schemes at different time intervals. The comparison of performance section reveals that in most time intervals, Principal Emerging Bluechip Fund leads the race. The summary comparison of the performance section is tabulated as follows.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch Principal Emerging Bluechip Fund
Growth
Fund Details 2.9% 2.9% 13.6% 38.9% 21.9% 19.2% 24.8% L&T India Value Fund
Growth
Fund Details 3% 5.3% 4% 23.3% 29.7% 12.3% 15%
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The comparison of absolute returns generated by both the schemes for a particular year is compared in this section. The comparison of absolute returns reveals that for certain years, Principal Emerging Bluechip Fund has performed better while in others L&T India Value Fund has done better. The table given below summarizes the comparison of the yearly performance section.
Parameters Yearly Performance 2022 2021 2020 2019 2018 Principal Emerging Bluechip Fund
Growth
Fund Details 0% 0% 0% 0% 0% L&T India Value Fund
Growth
Fund Details 5.2% 40.3% 14.6% 4.6% -11.4%
It is the last section of comparison and includes parameters such as AUM, minimum SIP investment, and minimum lumpsum investment. The minimum lumpsum amount for both the schemes is similar, that is, INR 5,000. On the other hand, the minimum SIP amount in case of both the schemes is different. In case of Principal Emerging Bluechip Fund, the minimum SIP amount is INR 2,000 while for L&T India Value Fund, it is INR 500. In addition, the comparison of AUM reveals that there is a significant difference in the AUM of both the schemes. As on March 31, 2018, the AUM of Principal Mutual Fund’s scheme was approximately INR 1,657 Crores while of L&T Mutual Fund’s scheme was nearly INR 7,347 Crores. The summary comparison of the other details section is tabulated as follows.
Parameters Other Details Min SIP Investment Min Investment Fund Manager Principal Emerging Bluechip Fund
Growth
Fund Details ₹100 ₹5,000 L&T India Value Fund
Growth
Fund Details ₹500 ₹5,000 Venugopal Manghat - 10.44 Yr.
Principal Emerging Bluechip Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 May 18 ₹10,000 31 May 19 ₹9,693 31 May 20 ₹8,295 31 May 21 ₹14,264 L&T India Value Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 May 18 ₹10,000 31 May 19 ₹10,098 31 May 20 ₹7,763 31 May 21 ₹13,555 31 May 22 ₹14,722 31 May 23 ₹17,492
Principal Emerging Bluechip Fund
Growth
Fund Details Asset Allocation
Asset Class Value Equity Sector Allocation
Sector Value Top Securities Holdings / Portfolio
Name Holding Value Quantity L&T India Value Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 1.46% Equity 98.54% Equity Sector Allocation
Sector Value Financial Services 27.93% Basic Materials 15.3% Industrials 13.84% Consumer Cyclical 9.81% Technology 8.15% Consumer Defensive 6.68% Health Care 4.75% Utility 4.44% Real Estate 2.78% Energy 2.59% Communication Services 2.28% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 11 | ICICIBANK7% ₹562 Cr 6,121,000
↓ -354,000 NTPC Ltd Shs Dematerialised (Utilities)
Equity, Since 30 Apr 22 | NTPC4% ₹359 Cr 20,864,600 State Bank of India (Financial Services)
Equity, Since 30 Nov 20 | SBIN4% ₹333 Cr 5,766,900 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Sep 18 | HDFCBANK4% ₹300 Cr 1,777,300 Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 31 Mar 17 | SUNPHARMA4% ₹299 Cr 3,023,400 ITC Ltd Shs Dematerialised (Consumer Defensive)
Equity, Since 31 Aug 15 | ITC4% ₹291 Cr 6,827,170 The Federal Bank Ltd (Financial Services)
Equity, Since 31 Oct 20 | FEDERALBNK4% ₹290 Cr 21,478,000 Infosys Ltd (Technology)
Equity, Since 31 Dec 10 | INFY3% ₹252 Cr 2,010,000 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Jul 20 | M&M3% ₹218 Cr 1,778,800 Larsen & Toubro Ltd (Industrials)
Equity, Since 29 Feb 16 | LT3% ₹216 Cr 913,137
Therefore, it can be concluded in a nutshell, that both the schemes differ on account of various parameters. Resultantly, individuals should pay extra caution while investing in any of the schemes. They should match their investment objective with the scheme’s objective and understand the modalities of the scheme completely. This will help them to ensure that their money is safe and their objectives are met on time.