Principal Emerging Bluechip Fund Vs L&T India Value Fund

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

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

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 Vs L&T India Value Fund

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.

Basics 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.

Performance Section

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.

Yearly Performance Section

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.

Other Details Section

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.

Growth of 10k Investments over the years