Aditya Birla Sun Life Frontline Equity Fund Vs Nippon India Large Cap Fund

Aditya Birla Sun Life Frontline Equity Fund and Nippon India Large Cap Fund (Formerly known as Reliance Large Cap Fund) both the schemes are a part of large-cap equity fund. In simple terms, Large cap funds are the schemes that invest in shares of companies having a Market capitalization of more than INR 10,000 Crores. Large-cap funds form the top of the pyramid when Equity Funds are classified on the Basis of market capitalization. These companies are also known as bluechip companies and give stable returns and performance. Even during economic problems, the share prices of large-cap funds do not fluctuate much. Large-cap companies are also the market leaders in their field wherein and have a reputation for themselves. So, let us understand the differences between Aditya Birla Sun Life Frontline Equity Fund and Nippon India Large Cap Fund by comparing various parameters such as performance, NAV, and other through this article.

Aditya Birla Sun Life Frontline Equity Fund

Aditya Birla Sun Life (ABSL) Frontline Equity Fund is offered and managed by ABSL Mutual Fund and was launched in the month of August 2002. The scheme uses S&P BSE 200 Index as its base index to build its Portfolio. Some of the highlights of ABSL Frontline Equity Fund are an investment in promising companies across industries, maintaining discipline by trying to maintain an exposure within a certain Range of the sectoral weight in the benchmark index, and wealth creation with equity investments. Investors seeking for wealth creation over a time frame of 3-5 years can choose to invest in this scheme of ABSL Mutual Fund. Mr. Mahesh Patil is the sole fund manager of Aditya Birla Sun Life Frontline Equity Fund.

Nippon India Large Cap Fund (Formerly Reliance Large Cap Fund)

This scheme of Nippon India Mutual Fund aims to attain Capital appreciation in the long-term by Investing predominantly in equity and equity-related securities of large-cap companies. Nippon India Large Cap Fund was launched on August 08, 2007, and is appropriate for individuals seeking long-term capital growth by investing in equity and equity-related instruments. The risk-appetite of Nippon India Large Cap Fund is moderately high. Mr. Ashwani Kumar and Mr. Shailesh Raj Bhan are the fund managers of Reliance Large Cap Fund. As on March 31, 2018, some of the top holdings of Reliance Large Cap Fund consisted of HDFC Bank Limited, State Bank of India, Larsen & Toubro Limited, Tata Steel Limited, and Infosys Limited. The scheme aims to invest in companies that are leaders or potential leaders in their field and also have established business model along with sustainable free cash flows.

Aditya Birla Sun Life Frontline Equity Fund Vs Nippon India Large Cap Fund

Though both Aditya Birla Sun Life Frontline Equity Fund and Reliance/Nippon India Large Cap Fund belong to the same category, nevertheless; there are numerous differences between them. So, let’s analyze these differences that are divided into four sections, namely, basics section, performance section, yearly performance section, and other details section.

Basics Section

Being the first section in the comparison, it includes elements such as current NAV, Fincash Rating, and scheme category. The comparison of Fincash Rating reveals that both the scheme are rated as 4-Star schemes. Also, the comparison of scheme category shows that both the schemes are a part of the same category, that is, Equity Large Cap. With respect to the current NAV, it can be said that there is a drastic difference between both the schemes on account of NAV. As on April 26, 2018, the NAV of ABSL Frontline Equity Fund was approximately INR 217 while of Reliance/Nippon India Large Cap Fund was approximately INR 32. The table given below shows the summary comparison of the basics section.

Performance Section

The comparison of Compounded Annual Growth Rate or CAGR returns is done in the performance section. These CAGR returns are compared at different time intervals such as 1 Month Return, 3 Year Return, and 5 Year Return. The analysis of the performance section shows that though there is not much difference in the performance of both the schemes, yet; in many instances, ABSL Frontline Equity Fund leads the race. The summary comparison of the performance section is tabulated as follows.

Yearly Performance Section

Being the third section, it compares the absolute returns generated by both the schemes for a particular year. The comparison of the yearly performance section shows that, in certain years, Reliance Large Cap Fund leads the race and in others, ABSL Frontline Equity Fund leads the race. The table given below summarizes the comparison of the yearly performance section.

Other Details Section

It is the last section in the comparison of both the schemes. The elements forming part of the other details section include AUM, minimum SIP investment, and minimum lumpsum investment. The comparison of minimum SIP and lumpsum investment for both the schemes reveals a difference. The minimum SIP and the lumpsum amount in case of Nippon India Mutual Fund’s scheme are INR 100 and INR 5,000 respectively. However, for ABSL Mutual Fund’s scheme, the minimum SIP and lumpsum amount both are INR 1,000 only. Also, the AUM of both the schemes reveals a drastic difference. As on March 31, 2018, the AUM of Reliance Large Cap Fund is around INR 8,825 Crores while of Aditya Birla Sun Life Frontline Equity Fund is nearly INR 19,373 Crores. The comparison of other details section is as follows.

Growth of 10k Investments over the years