Table of Contents
L&T Midcap Fund and Aditya Birla Sun Life Midcap Fund both the schemes belong to the mid-cap category of Equity Funds. mid cap funds in simple terms are the Mutual Fund schemes that invest their money in the stocks of companies having a Market capitalization between INR 500 – INR 10,000 Crores. Mid-cap schemes are considered to be a good long-term investment option. These companies have good growth potentials and if performed well, they can be the future large-cap companies. Though L&T Midcap Fund and Aditya Birla Sun Life Midcap Fund belong to the same category, yet; they differ on account of a number of differences. So, let’s understand the differences between them through this article.
L&T Midcap Fund’s investment objective is to attain Capital growth in the long-term by mainly Investing the pooled money in mid-cap stocks. The scheme selects its stocks for investment that form part of the Nifty Freefloat Midcap 100 Index to formulate its Portfolio. Based on the Asset Allocation objective of the scheme, L&T Midcap Fund invests around 80-100% of the fund money in equity and equity-related securities and the remaining in fixed Income and money market instruments. The parameters that L&T Midcap Fund uses to select its stocks are management quality, competitive position, and valuations. L&T Midcap Fund is jointly managed by Mr. S. N. Lahiri and Mr. Vihang Naik. As on March 31, 2018, some of the constituents of L&T Midcap Fund’s portfolio included Sundaram Finance Limited, Berger Paints India Limited, Graphite India Limited, and the Federal Bank Limited.
Aditya Birla Sun Life (ABSL) Midcap Fund is a part of ABSL Mutual Fund and was incepted on October 02, 2002. This open-ended mid-cap fund can be an apt choice for individuals seeking long-term capital growth by investing in mid-cap stocks. The scheme aims to provide investors a chance to invest in mid-cap companies that can be potential leaders of tomorrow. The highlights of ABSL Midcap Fund are long-term capital growth and investment in stocks with higher growth potentials. TeamLease Services Limited, Mahindra CIE Automotive Limited, Bharat Electronics Limited, and Gujrat State Petronet Limited are some of the top 10 constituents of this scheme of ABSL Mutual Fund as on March 31, 2018. Mr. Jayesh Gandhi is the sole fund manager of ABSL Midcap Fund.
The various parameters that differentiate L&T Midcap Fund and ABSL Midcap Fund are classified into four sections, namely, basics section, performance section, yearly performance section, and other details section. These sections are explained as follows.
Basics section is the first section in the comparison of the schemes that includes parameters such as Fincash Rating, scheme category, and current NAV. To begin with the Fincash Rating, it can be said that L&T Midcap Fund is rated as 4-Star and ABSL Midcap Fund is rated as 3-Star. The comparison of scheme category reveals that both the schemes belong to the same category of Equity Mid & small cap. However, in case of NAV, both the schemes differ drastically. As on May 02, 2018, the NAV of L&T Mutual Fund’s scheme was nearly INR 147 while of ABSL Mutual Fund’s scheme was around INR 320. The summary comparison of the basics section is listed below 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 Essel Long Term Advantage Fund
Growth
Fund Details ₹26.6281 ↑ 0.38 (1.45 %) ₹60 on 31 Mar 24 30 Dec 15 Equity ELSS Moderately High 0 1.91 -1.2 -5.52 Not Available NIL Aditya Birla Sun Life Midcap Fund
Growth
Fund Details ₹683.5 ↑ 5.95 (0.88 %) ₹4,913 on 31 Mar 24 3 Oct 02 ☆☆☆ Equity Mid Cap 16 Moderately High 2.07 2.68 -0.94 -3.17 Not Available 0-365 Days (1%),365 Days and above(NIL)
Being the second section, it compares the CAGR or Compounded Annual Growth Rate returns of both the schemes. These CAGR returns are compared at different time intervals such as 3 Year Return, 5 Year Return, and Return since Inception. On the Basis of performance, it can be said that, in most of the instances, L&T Midcap Fund leads the race. The table given below summarizes the comparison of the performance section.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch Essel Long Term Advantage Fund
Growth
Fund Details 3.2% 1.9% 12.5% 27.3% 16% 14% 12.4% Aditya Birla Sun Life Midcap Fund
Growth
Fund Details 2.6% 6.1% 18.7% 45.3% 23.9% 20.4% 21.6%
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This section compares the absolute returns generated by both the schemes for a particular year. The comparison of yearly performance section also shows that in most of the years, L&T Midcap Fund has performed better as compared to ABSL Midcap Fund. The comparison summary of the yearly performance section is tabulated as follows.
Parameters Yearly Performance 2023 2022 2021 2020 2019 Essel Long Term Advantage Fund
Growth
Fund Details 24.1% -2% 29.4% 8.5% 7.9% Aditya Birla Sun Life Midcap Fund
Growth
Fund Details 39.9% -5.3% 50.4% 15.5% -3.7%
The parameters forming part of this section includes AUM, minimum SIP and lumpsum investment, and exit load. Both the schemes differ on the basis of AUM. As on March 31, 2018, the AUM of L&T Midcap Fund 2,403 Crores and of ABSL Midcap Fund is around 2,229 Crores. The minimum SIP and lumpsum investment are also different for both the schemes. In case of L&T’s scheme, the SIP and lumpsum amounts are INR 500 and INR 5,000 respectively. However, for ABSL Midcap Fund, both SIP and lumpsum amounts are INR 1,000 only. The exit load of both the schemes are also same. The summary comparison of the other details section is tabulated as follows.
Parameters Other Details Min SIP Investment Min Investment Fund Manager Essel Long Term Advantage Fund
Growth
Fund Details ₹500 ₹500 Aditya Mulki - 2.06 Yr. Aditya Birla Sun Life Midcap Fund
Growth
Fund Details ₹1,000 ₹1,000 Harish Krishnan - 0.41 Yr.
Essel Long Term Advantage Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 30 Apr 19 ₹10,000 30 Apr 20 ₹8,144 30 Apr 21 ₹11,787 30 Apr 22 ₹13,690 30 Apr 23 ₹14,150 30 Apr 24 ₹18,250 Aditya Birla Sun Life Midcap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 30 Apr 19 ₹10,000 30 Apr 20 ₹7,561 30 Apr 21 ₹12,531 30 Apr 22 ₹16,265 30 Apr 23 ₹15,942 30 Apr 24 ₹24,192
Essel Long Term Advantage Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 1.65% Equity 98.35% Equity Sector Allocation
Sector Value Financial Services 25.72% Technology 16.63% Industrials 12.05% Health Care 11.99% Consumer Cyclical 9.09% Consumer Defensive 9% Basic Materials 5.79% Energy 4.57% Communication Services 3.51% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 30 Apr 20 | INFY6% ₹4 Cr 25,000 Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 28 Feb 21 | SUNPHARMA6% ₹3 Cr 20,500 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Dec 15 | HDFCBANK5% ₹3 Cr 21,500 Reliance Industries Ltd (Energy)
Equity, Since 31 Dec 19 | RELIANCE5% ₹3 Cr 9,268 Hindustan Aeronautics Ltd Ordinary Shares (Industrials)
Equity, Since 30 Sep 22 | 5411544% ₹3 Cr 7,900 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Mar 16 | ICICIBANK4% ₹3 Cr 23,609 Tata Motors Ltd (Consumer Cyclical)
Equity, Since 28 Feb 21 | TATAMOTORS4% ₹2 Cr 22,000 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Mar 20 | TCS3% ₹2 Cr 5,265
↑ 800 SBI Life Insurance Company Limited (Financial Services)
Equity, Since 31 Jan 22 | 5407193% ₹2 Cr 13,500 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Jan 20 | BHARTIARTL3% ₹2 Cr 16,000 Aditya Birla Sun Life Midcap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 1.67% Equity 98.33% Equity Sector Allocation
Sector Value Financial Services 18.59% Industrials 16.82% Consumer Cyclical 16.51% Basic Materials 16.28% Health Care 9.51% Technology 6.36% Utility 4.84% Consumer Defensive 3.6% Communication Services 2.96% Real Estate 2.86% Top Securities Holdings / Portfolio
Name Holding Value Quantity Torrent Power Ltd (Utilities)
Equity, Since 31 Oct 19 | 5327794% ₹181 Cr 1,334,122
↓ -85,140 K.P.R. Mill Ltd (Consumer Cyclical)
Equity, Since 31 Aug 20 | 5328893% ₹154 Cr 1,855,868 Phoenix Mills Ltd (Real Estate)
Equity, Since 31 Aug 20 | 5031003% ₹141 Cr 505,109
↓ -55,735 Gujarat Fluorochemicals Ltd Ordinary Shares (Basic Materials)
Equity, Since 30 Sep 19 | 5428123% ₹139 Cr 449,707
↓ -7,600 Fortis Healthcare Ltd (Healthcare)
Equity, Since 31 May 17 | 5328433% ₹138 Cr 3,294,435 Cholamandalam Financial Holdings Ltd (Financial Services)
Equity, Since 31 Dec 14 | 5049733% ₹128 Cr 1,148,702 Coromandel International Ltd (Basic Materials)
Equity, Since 31 Aug 18 | 5063953% ₹126 Cr 1,167,738 Mphasis Ltd (Technology)
Equity, Since 31 Mar 20 | 5262992% ₹119 Cr 498,427 Glenmark Pharmaceuticals Ltd (Healthcare)
Equity, Since 28 Feb 21 | 5322962% ₹116 Cr 1,211,666 The Federal Bank Ltd (Financial Services)
Equity, Since 31 Mar 12 | FEDERALBNK2% ₹113 Cr 7,541,948
Thus, from the above-mentioned pointers, it can be said that both the schemes differ on numerous parameters in spite of belonging to the same category. As a result, individuals should be careful before investing in any of the schemes. Individuals should analyse the schemes thoroughly and check whether it matches their investment objective or not. If required, they can even take the financial opinion of a financial advisor. This will help individuals to attain their objectives on time and ensure that their investment is safe.
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