Fincash » L&T Emerging Businesses Fund Vs Kotak Small Cap Fund
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L&T Emerging Businesses Fund Vs Kotak Small Cap Fund
Both L&T Emerging Businesses Fund and Kotak Small Cap Fund belong to the category of Small cap funds. Small-cap funds invest in shares of companies having a Market capitalization of less than INR 500 Crores. Both the schemes are suitable for long-term tenure. So, let us understand the differences between L&T Emerging Businesses Fund and Kotak Small Cap Fund through this article.
About L&T Emerging Businesses Fund
L&T Emerging Businesses Fund was launched in the month of May 2014. The investment objective of L&T Emerging Businesses Fund is to attain Capital appreciation in the long-run. This objective is attained from a diversified Portfolio consisting of equity-related securities predominantly focusing on small-cap companies. This scheme is jointly managed by Mr. S. N. Lahiri and Mr. Karan Desai. As on March 31, 2018, some of the constituents of L&T Emerging Businesses Fund’s portfolio consisted of Supreme Industries Limited, Swaraj Engines Limited, NOCIL Limited, Future Retail Limited. L&T Emerging Businesses Fund uses S&P BSE Small Cap TRI as its benchmark to construct its portfolio. The key benefits of L&T Emerging Businesses Fund are experienced investment team, suitable for investors seeking higher returns, and style diversifier.
About Kotak Small Cap Fund (Erstwhile Kotak Midcap Scheme)
Kotak Small Cap Fund (earlier known as Kotak Midcap Scheme) was incepted on February 24, 2005. This scheme is suitable for individuals seeking for long-term capital growth by Investing in equity and equity-related securities primarily consisting of small-cap companies. JK Cement Limited, Dixon Technologies India Limited, IndusInd Bank Limited, and Solar Industries India Limited are some of the top holdings of Kotak Small Cap Fund as on March 31, 2018. Mr. Pankaj Tibrewal is the sole fund manager managing Kotak Small Cap Fund. Based on the Asset Allocation pattern, Kotak Small Cap Fund invests around 65-100% of its accumulated fund money in shares of mid-cap securities. The remaining fund money is invested fixed Income and money market instruments or shares of companies other than small-cap category up to a maximum limit of 35%.
L&T Emerging Businesses Fund Vs Kotak Small Cap Fund
Though both the Mutual Fund schemes belong to the same category, nonetheless; they differ on account of various parameters such as AUM, performance, and so on. So, let’s compare the differences between L&T Emerging Businesses Fund and Kotak Small Cap Fund using these parameters that are classified into four section given below as follows.
Basics Section
Current NAV, Fincash Rating, and scheme category are the parameters that form part of the basics section. The comparison of current NAV reveals that there is a significant difference between the NAV of both the schemes. As on April 24, 2018, the NAV of Kotak Small Cap Fund was approximately INR 81 while of L&T Emerging Businesses Fund was around INR 28. With respect to Fincash Rating of the schemes, it can be said that L&T Emerging Businesses Fund is rated as 5-Star while Kotak Small Cap Fund is rated as 3-Star. The scheme category for both Mutual Fund schemes is same, that is, Equity Mid & Small-cap. 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 L&T Emerging Businesses Fund
Growth
Fund Details ₹91.2582 ↓ -0.02 (-0.03 %) ₹17,306 on 30 Sep 24 12 May 14 ☆☆☆☆☆ Equity Small Cap 2 High 1.73 2 0.27 0.52 Not Available 0-1 Years (1%),1 Years and above(NIL) Kotak Small Cap Fund
Growth
Fund Details ₹280.753 ↓ -0.60 (-0.21 %) ₹17,593 on 31 Oct 24 24 Feb 05 ☆☆☆ Equity Small Cap 23 Moderately High 1.67 2.12 -0.62 7.3 Not Available 0-1 Years (1%),1 Years and above(NIL)
Performance Section
This section compares the Compounded Annual Growth Rate or CAGR returns of both the schemes. These CAGR returns are compared at different time intervals such as 1 Month Return, 6 Month Return, 5 Year Return, and Return Since Inception. The comparison of performance section reveals that in many instances the returns generated by L&T Emerging Businesses Fund is higher. The summary comparison of the performance section is as shown in the table given below.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch L&T Emerging Businesses Fund
Growth
Fund Details 10.2% 2.1% 8.6% 32.6% 27% 32.4% 23.2% Kotak Small Cap Fund
Growth
Fund Details 5.8% -1.3% 6.8% 29.4% 19.3% 31.5% 18.3%
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Yearly Performance Section
The comparison of absolute returns generated by both schemes for a particular year is compared in this section. The analysis of this section also reveals that L&T Emerging Businesses Fund Leads the race. The table given below summarizes the comparison of the yearly performance section.
Parameters Yearly Performance 2023 2022 2021 2020 2019 L&T Emerging Businesses Fund
Growth
Fund Details 46.1% 1% 77.4% 15.5% -8.1% Kotak Small Cap Fund
Growth
Fund Details 34.8% -3.1% 70.9% 34.2% 5%
Other Details Section
It is the last section in the comparison of both the schemes. This section compares elements such as AUM, minimum SIP and lumpsum amount, and others related parameters. The comparison of AUM reveals a drastic difference between both the schemes. As on March 31, 2018, the AUM of Kotak Small Cap Fund was around INR 819 Crores while of L&T Emerging Businesses Fund was around INR 4,404 Crores. The minimum lumpsum investment for both the schemes is same, that is, INR 5,000. However, the minimum SIP investment for Kotak Mutual Fund’s scheme is INR 1,000 and for L&T Mutual Fund’s scheme is INR 500. The comparison of other details section is summarized in the table given below.
Parameters Other Details Min SIP Investment Min Investment Fund Manager L&T Emerging Businesses Fund
Growth
Fund Details ₹500 ₹5,000 Venugopal Manghat - 4.96 Yr. Kotak Small Cap Fund
Growth
Fund Details ₹1,000 ₹5,000 Harish Bihani - 1.12 Yr.
Growth of 10k Investments over the years
L&T Emerging Businesses Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 30 Nov 19 ₹10,000 30 Nov 20 ₹10,894 30 Nov 21 ₹19,240 30 Nov 22 ₹21,023 30 Nov 23 ₹29,366 30 Nov 24 ₹38,725 Kotak Small Cap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 30 Nov 19 ₹10,000 30 Nov 20 ₹12,833 30 Nov 21 ₹22,884 30 Nov 22 ₹22,932 30 Nov 23 ₹29,052 30 Nov 24 ₹38,342
Detailed portfolio Comparison
L&T Emerging Businesses Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 1.78% Equity 98.22% Equity Sector Allocation
Sector Value Industrials 31.33% Consumer Cyclical 15.35% Financial Services 14.41% Basic Materials 12.12% Technology 8.54% Real Estate 5.16% Health Care 3.86% Consumer Defensive 3.52% Energy 1.51% Top Securities Holdings / Portfolio
Name Holding Value Quantity Apar Industries Ltd (Industrials)
Equity, Since 31 Mar 17 | APARINDS3% ₹458 Cr 455,400
↓ -50,000 Aditya Birla Real Estate Ltd (Basic Materials)
Equity, Since 30 Sep 22 | 5000403% ₹441 Cr 1,607,279 Neuland Laboratories Limited
Equity, Since 31 Jan 24 | -2% ₹410 Cr 281,022 Kirloskar Pneumatic Co Ltd (Industrials)
Equity, Since 31 Aug 22 | 5052832% ₹406 Cr 2,444,924
↑ 127,474 BSE Ltd (Financial Services)
Equity, Since 29 Feb 24 | BSE2% ₹395 Cr 884,500
↑ 108,253 Techno Electric & Engineering Co Ltd (Industrials)
Equity, Since 31 Jan 19 | TECHNOE2% ₹387 Cr 2,473,042 Trent Ltd (Consumer Cyclical)
Equity, Since 31 Jan 17 | 5002512% ₹383 Cr 537,550
↓ -42,850 Brigade Enterprises Ltd (Real Estate)
Equity, Since 31 Jul 19 | 5329292% ₹341 Cr 2,891,084 NCC Ltd (Industrials)
Equity, Since 28 Feb 21 | NCC2% ₹337 Cr 11,291,100 Dixon Technologies (India) Ltd (Technology)
Equity, Since 31 Jul 20 | DIXON2% ₹335 Cr 238,273 Kotak Small Cap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 2.18% Equity 97.82% Equity Sector Allocation
Sector Value Industrials 33% Consumer Cyclical 20.66% Basic Materials 14.66% Health Care 13.16% Technology 3.54% Real Estate 3.51% Financial Services 3.51% Consumer Defensive 3.23% Communication Services 2.54% Top Securities Holdings / Portfolio
Name Holding Value Quantity Cyient Ltd (Industrials)
Equity, Since 31 Dec 19 | CYIENT3% ₹583 Cr 3,174,852 Techno Electric & Engineering Co Ltd (Industrials)
Equity, Since 31 Dec 18 | TECHNOE3% ₹557 Cr 3,559,792 Century Plyboards (India) Ltd (Basic Materials)
Equity, Since 31 Oct 18 | 5325483% ₹539 Cr 6,353,571 Ratnamani Metals & Tubes Ltd (Basic Materials)
Equity, Since 31 Jan 18 | RATNAMANI3% ₹489 Cr 1,328,764 Blue Star Ltd (Industrials)
Equity, Since 31 May 18 | BLUESTARCO3% ₹471 Cr 2,518,929
↓ -97,744 Krishna Institute of Medical Sciences Ltd (Healthcare)
Equity, Since 31 Dec 23 | 5433083% ₹441 Cr 8,096,930 Vijaya Diagnostic Centre Ltd (Healthcare)
Equity, Since 31 Mar 24 | 5433502% ₹439 Cr 4,397,621 Sansera Engineering Ltd (Consumer Cyclical)
Equity, Since 30 Sep 21 | 5433582% ₹395 Cr 2,596,496 Alembic Pharmaceuticals Ltd (Healthcare)
Equity, Since 31 Jan 22 | APLLTD2% ₹387 Cr 3,427,766 V-Mart Retail Ltd (Consumer Cyclical)
Equity, Since 28 Feb 21 | VMART2% ₹384 Cr 902,098
Therefore, from the above parameters, it can be said that both the schemes differ with each other. As a result, individuals should pay a lot of caution while choosing any of the schemes. They should understand the modalities of the scheme thoroughly and ensure that the scheme matches with their investment objectives. This will help them to attain their objectives on time and ensure that their investment is safe.
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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