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 ₹156.039 ↑ 2.13 (1.39 %) ₹45,749 on 31 Mar 24 16 Sep 10 ☆☆☆☆ Equity Small Cap 6 Moderately High 1.82 3.32 0.93 6.47 Not Available 0-1 Years (1%),1 Years and above(NIL) L&T Emerging Businesses Fund
Growth
Fund Details ₹76.2696 ↑ 0.91 (1.21 %) ₹13,401 on 31 Mar 24 12 May 14 ☆☆☆☆☆ Equity Small Cap 2 High 1.84 2.51 0.63 -3.95 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 6.8% 9% 22.8% 57.4% 35% 32.5% 22.3% L&T Emerging Businesses Fund
Growth
Fund Details 5.5% 5.8% 17.3% 49% 32.3% 27.1% 22.5%
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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 2023 2022 2021 2020 2019 Nippon India Small Cap Fund
Growth
Fund Details 48.9% 6.5% 74.3% 29.2% -2.5% L&T Emerging Businesses Fund
Growth
Fund Details 46.1% 1% 77.4% 15.5% -8.1%
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 - 7.25 Yr. L&T Emerging Businesses Fund
Growth
Fund Details ₹500 ₹5,000 Venugopal Manghat - 4.29 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 30 Apr 19 ₹10,000 30 Apr 20 ₹7,864 30 Apr 21 ₹15,638 30 Apr 22 ₹21,799 30 Apr 23 ₹24,109 30 Apr 24 ₹38,830 L&T Emerging Businesses Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 30 Apr 19 ₹10,000 30 Apr 20 ₹6,968 30 Apr 21 ₹13,324 30 Apr 22 ₹18,672 30 Apr 23 ₹20,595 30 Apr 24 ₹31,468
Detailed Assets & Holdings Comparison
Nippon India Small Cap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 4.05% Equity 95.95% Other 0% Equity Sector Allocation
Sector Value Industrials 31.92% Financial Services 13.93% Consumer Cyclical 11.36% Basic Materials 9.98% Technology 8.69% Health Care 7.93% Consumer Defensive 7.14% Communication Services 1.72% Utility 1.38% Energy 1.04% Real Estate 0.31% Top Securities Holdings / Portfolio
Name Holding Value Quantity Tube Investments of India Ltd Ordinary Shares (Industrials)
Equity, Since 30 Apr 18 | 5407622% ₹1,093 Cr 2,924,163 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK2% ₹890 Cr 6,150,000
↑ 1,000,000 Voltamp Transformers Ltd (Industrials)
Equity, Since 30 Sep 16 | 5327572% ₹836 Cr 864,398 Apar Industries Ltd (Industrials)
Equity, Since 31 Mar 17 | 5322592% ₹754 Cr 1,080,116 Multi Commodity Exchange of India Ltd (Financial Services)
Equity, Since 28 Feb 21 | MCX1% ₹620 Cr 1,851,010 Bharat Heavy Electricals Ltd (Industrials)
Equity, Since 30 Sep 22 | 5001031% ₹618 Cr 25,000,000 State Bank of India (Financial Services)
Equity, Since 31 Oct 19 | SBIN1% ₹609 Cr 8,100,000 Karur Vysya Bank Ltd (Financial Services)
Equity, Since 28 Feb 17 | 5900031% ₹581 Cr 31,784,062 NIIT Learning Systems Ltd (Consumer Defensive)
Equity, Since 30 Jun 23 | 5439521% ₹579 Cr 11,420,240 InterGlobe Aviation Ltd (Industrials)
Equity, Since 30 Nov 22 | INDIGO1% ₹575 Cr 1,619,443 L&T Emerging Businesses Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 2.64% Equity 97.36% Equity Sector Allocation
Sector Value Industrials 31.58% Basic Materials 14.56% Consumer Cyclical 14.41% Technology 10.45% Financial Services 9.58% Real Estate 6.78% Health Care 5.05% Consumer Defensive 2.53% Energy 1.06% Top Securities Holdings / Portfolio
Name Holding Value Quantity Apar Industries Ltd (Industrials)
Equity, Since 31 Mar 17 | 5322593% ₹443 Cr 635,400
↓ -33,000 EIH Ltd (Consumer Cyclical)
Equity, Since 31 May 17 | 5008403% ₹388 Cr 8,627,473 Brigade Enterprises Ltd (Real Estate)
Equity, Since 31 Jul 19 | 5329293% ₹362 Cr 3,866,279
↓ -100,000 Sonata Software Ltd (Technology)
Equity, Since 31 Jul 18 | 5322213% ₹354 Cr 4,896,490 KEI Industries Ltd (Industrials)
Equity, Since 31 Jan 20 | 5175692% ₹328 Cr 947,670 KPIT Technologies Ltd (Technology)
Equity, Since 30 Sep 21 | 5426512% ₹325 Cr 2,188,200 K.P.R. Mill Ltd (Consumer Cyclical)
Equity, Since 28 Feb 15 | 5328892% ₹299 Cr 3,586,897 NCC Ltd (Industrials)
Equity, Since 28 Feb 21 | NCC2% ₹262 Cr 11,291,100 Century Textiles & Industries Ltd (Basic Materials)
Equity, Since 30 Sep 22 | 5000402% ₹262 Cr 1,607,279 Sobha Ltd (Real Estate)
Equity, Since 31 Mar 17 | 5327842% ₹249 Cr 1,721,853
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.