Table of Contents
HDFC small cap Fund and Aditya Birla Sun Life Small Cap Fund both the schemes belong to the small-cap category of Equity Funds. These funds invest their corpus in shares of companies whose Market capitalization is less than INR 500 Crores. These companies are either start-ups or in their early stages of development and have huge growth potentials. In addition, these companies in many situations have performed better as compared to other large and mid-cap companies. However, the investment tenure of small-cap companies is generally high. Though HDFC Small Cap Fund and Aditya Birla Sun Life Small Cap Fund belong to the same category, nevertheless; they differ on account of numerous parameters. So, let’s analyze the differences between these schemes through these parameters.
Aditya Birla Sun Life Small Cap Fund (earlier known as Aditya Birla Sun Life Small & Midcap Fund) is an open-ended scheme offered by Aditya Birla Sun Life Mutual Fund under the small-cap category. The investment goal of this scheme is to attain generate growth in Capital investment in the long-term tenure by primarily Investing in shares of small and midcap companies. The scheme was incepted on May 30, 2007, and is managed solely by Mr. Jayesh Gandhi. The highlight of ABSL Small Cap Fund is that it invests more than 70% of its accumulated fund money in shares of small-cap companies. As on March 31, 2018, some of the top 10 holdings of this scheme of Birla Sun Life Mutual Fund included Tata Metaliks Limited, Gujrat State Petronet Limited, CG Power & Industrial Solutions Limited, and DCB Bank Limited.
The objective of HDFC Small Cap Fund is to attain appreciation in the capital invested by the investors in the long-term tenure by investing the money mainly in companies forming part of the small-cap category. The risk-appetite of HDFC Small Cap Fund is moderately high and is suitable for investors seeking an investment in small-cap companies thereby attaining capital growth. HDFC Small Cap Fund is managed by HDFC Mutual Fund and was launched in the month of April 2008. The scheme uses Nifty Smallcap 100 Index and NIFTY 50 as its primary and additional benchmark to construct its Portfolio. Mr. Chirag Setalvad and Mr. Rakesh Vyas together manage the HDFC Small Cap Fund. Sonata Software Limited, Atul Limited, Chambal Fertilizers and Chemicals Limited, and SKF India Limited, are some of the holdings that are part of HDFC Small Cap Fund’s portfolio as on March 31, 2018.
Though both the schemes belong to the same category, yet; they differ on account of numerous parameters such as performance, current NAV, and so on. So, let’s understand the differences between Aditya Birla Sun Life Small Cap Fund Vs HDFC Small Cap Fund through this article.
It is the first section in the comparison that includes elements such as Current NAV, scheme category, and Fincash Rating. To begin with the scheme category, it can be referred that both the schemes belong to the same category of Equity Mid & Small-cap. The comparison of NAV shows that HDFC Small Cap Fund leads the race. As on April 26, 2018, the NAV of ABSL Small Cap Fund was approximately INR 42 while of HDFC Small Cap Fund was around INR 47. With respect to Fincash Rating, it can be said that Aditya Birla Sun Life Small Cap Fund is rated as a 5-Star scheme and HDFC Small Cap Fund is rated as a 4-Star scheme. The summary comparison of the basics section is tabulated 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 Aditya Birla Sun Life Small Cap Fund
Growth
Fund Details ₹89.3808 ↑ 1.12 (1.27 %) ₹5,430 on 30 Sep 24 31 May 07 ☆☆☆☆☆ Equity Small Cap 1 Moderately High 1.89 1.87 0 0 Not Available 0-365 Days (1%),365 Days and above(NIL) HDFC Small Cap Fund
Growth
Fund Details ₹139.715 ↑ 2.37 (1.72 %) ₹33,963 on 30 Sep 24 3 Apr 08 ☆☆☆☆ Equity Small Cap 9 Moderately High 1.64 1.73 0 0 Not Available 0-1 Years (1%),1 Years and above(NIL)
This being the second section compares the CAGR or Compounded Annual Growth Rate returns of both the schemes at different time intervals. These time intervals include 1 Month Return, 6 Month Return, 3 Year Return, and Return since Inception. The analysis of the performance section shows that; HDFC Small Cap Fund leads the race in many instances. In addition, there also exists a significant difference between the returns of both the schemes. The table given below shows the summary comparison of the performance section.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch Aditya Birla Sun Life Small Cap Fund
Growth
Fund Details -4.1% -1.4% 13.7% 37.8% 17.5% 23.8% 13.3% HDFC Small Cap Fund
Growth
Fund Details -1.5% 0.3% 10.9% 36.1% 24% 28.7% 17.2%
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It is the third section in the comparison of the schemes. The comparable element of yearly performance section is the absolute returns generated by both the schemes for a particular year. With respect to absolute returns, it can be said that for certain years, ABSL Small Cap Fund has done better while in others, HDFC Small Cap Fund has performed well. The table given below summarizes the comparison of yearly performance section.
Parameters Yearly Performance 2023 2022 2021 2020 2019 Aditya Birla Sun Life Small Cap Fund
Growth
Fund Details 39.4% -6.5% 51.4% 19.8% -11.5% HDFC Small Cap Fund
Growth
Fund Details 44.8% 4.6% 64.9% 20.2% -9.5%
AUM, minimum SIP investment, and minimum lumpsum investment are some of the parameters that form part of the other details section. With respect to the AUM, there is not much difference between both the schemes, though HDFC Mutual Fund’s scheme leads the race. As on March 31, 2018, the AUM of ABSL Small Cap Fund was approximately INR 2,089 Crores while of HDFC Small Cap Fund was around INR 2,968 Crores. Both the schemes also differ on account of minimum SIP and lumpsum investment. The minimum SIP and lumpsum investment for ABSL Small Cap Fund are INR 1,000 for both respectively. However, the SIP and lumpsum investment for HDFC Small Cap Fund is INR 500 and INR 5,000. The summary comparison of this section is as shown in the table given below.
Parameters Other Details Min SIP Investment Min Investment Fund Manager Aditya Birla Sun Life Small Cap Fund
Growth
Fund Details ₹1,000 ₹1,000 Vishal Gajwani - 1.99 Yr. HDFC Small Cap Fund
Growth
Fund Details ₹300 ₹5,000 Chirag Setalvad - 10.27 Yr.
Aditya Birla Sun Life Small Cap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Oct 19 ₹10,000 31 Oct 20 ₹10,000 31 Oct 21 ₹17,963 31 Oct 22 ₹17,177 31 Oct 23 ₹21,139 31 Oct 24 ₹29,125 HDFC Small Cap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Oct 19 ₹10,000 31 Oct 20 ₹9,536 31 Oct 21 ₹18,508 31 Oct 22 ₹19,506 31 Oct 23 ₹25,963 31 Oct 24 ₹35,327
Aditya Birla Sun Life Small Cap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 2.7% Equity 97.3% Equity Sector Allocation
Sector Value Industrials 30.2% Consumer Cyclical 19.24% Basic Materials 10.29% Financial Services 9.24% Technology 8.37% Health Care 7.53% Real Estate 6.2% Consumer Defensive 5.38% Communication Services 0.84% Top Securities Holdings / Portfolio
Name Holding Value Quantity Hitachi Energy India Ltd Ordinary Shares (Technology)
Equity, Since 30 Sep 20 | POWERINDIA4% ₹231 Cr 158,482 TD Power Systems Ltd (Industrials)
Equity, Since 30 Jun 23 | TDPOWERSYS3% ₹156 Cr 3,711,062 Brigade Enterprises Ltd (Real Estate)
Equity, Since 30 Jun 21 | 5329292% ₹124 Cr 876,647
↑ 97,218 Navin Fluorine International Ltd (Basic Materials)
Equity, Since 31 Jul 20 | NAVINFLUOR2% ₹123 Cr 358,005 R R Kabel Ltd (Industrials)
Equity, Since 30 Sep 23 | RRKABEL2% ₹120 Cr 692,435 Tega Industries Ltd (Industrials)
Equity, Since 31 Dec 21 | 5434132% ₹118 Cr 627,100 Kirloskar Pneumatic Co Ltd (Industrials)
Equity, Since 31 Aug 22 | 5052832% ₹116 Cr 876,897 TeamLease Services Ltd (Industrials)
Equity, Since 30 Jun 23 | TEAMLEASE2% ₹106 Cr 338,205
↓ -1,095 Whirlpool of India Ltd (Consumer Cyclical)
Equity, Since 29 Feb 24 | 5002382% ₹102 Cr 447,586
↓ -48,088 Cholamandalam Financial Holdings Ltd (Financial Services)
Equity, Since 31 Dec 18 | CHOLAHLDNG2% ₹93 Cr 454,699
↓ -13,693 HDFC Small Cap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 6.73% Equity 93.27% Equity Sector Allocation
Sector Value Industrials 27.67% Consumer Cyclical 19.25% Technology 13.44% Health Care 10.7% Financial Services 9.46% Basic Materials 7.06% Communication Services 2.95% Consumer Defensive 2.23% Utility 0.44% Top Securities Holdings / Portfolio
Name Holding Value Quantity Firstsource Solutions Ltd (Technology)
Equity, Since 31 Mar 18 | FSL5% ₹1,850 Cr 59,458,555
↓ -200,394 eClerx Services Ltd (Technology)
Equity, Since 31 Mar 18 | ECLERX3% ₹1,119 Cr 3,718,907
↑ 40,014 Bank of Baroda (Financial Services)
Equity, Since 31 Mar 19 | 5321343% ₹1,061 Cr 42,828,792 Aster DM Healthcare Ltd Ordinary Shares (Healthcare)
Equity, Since 30 Jun 19 | ASTERDM3% ₹972 Cr 23,420,534
↑ 502,692 Sonata Software Ltd (Technology)
Equity, Since 31 Oct 17 | SONATSOFTW3% ₹876 Cr 13,879,889 Eris Lifesciences Ltd Registered Shs (Healthcare)
Equity, Since 31 Jul 23 | ERIS2% ₹803 Cr 6,024,193
↓ -261,233 Power Mech Projects Ltd (Industrials)
Equity, Since 31 Aug 15 | POWERMECH2% ₹789 Cr 1,175,331 Fortis Healthcare Ltd (Healthcare)
Equity, Since 31 Jul 23 | 5328432% ₹766 Cr 12,453,275 PVR INOX Ltd (Communication Services)
Equity, Since 28 Feb 23 | PVRINOX2% ₹682 Cr 4,101,954 Great Eastern Shipping Co Ltd (Industrials)
Equity, Since 31 Jan 15 | GESHIP2% ₹675 Cr 5,622,939
To conclude in a nutshell, it can be said that there are differences between both the schemes in-spite of them belonging to the same category. As a consequence, individuals should be careful while investing in any of the schemes. They should understand its modalities completely and check whether the scheme suits their investment objective or not. This will help them to attain their objectives on time along with ensuring that their capital is safe.
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