Nippon India Small Cap Fund Vs Aditya Birla Sun Life Small Cap Fund

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/Reliance Small Cap Fund

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.

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.

Aditya Birla Sun Life Small Cap Fund (Erstwhile Aditya Birla Sun Life Small & Midcap Fund)

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.

Nippon India Small Cap Fund Vs Aditya Birla Sun Life Small Cap Fund

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.

Basics 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.

Performance Section

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.

Yearly Performance Section

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.

Other Details Section

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.

Growth of 10k Investments over the years