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L&T Emerging Businesses Fund Vs L&T Mid Cap Fund
L&T Emerging Businesses Fund and L&T Midcap Fund both belong to the same category of the mid & small-cap category of Equity Funds. However, L&T Emerging Businesses Fund predominantly invests its corpus in equity and equity-related instruments of small-cap companies, while L&T Midcap Fund invests its corpus in shares of midcap companies. As a consequence, there are some differences between both the schemes. In short, small-cap companies are the ones whose Market capitalization is less than INR 500 Crores. On the other hand, the market capitalization of mid-cap companies ranges between INR 500 – INR 10,000 Crores. Though both the schemes belong to the same category, they differ on account of numerous parameters. So, let’s understand the differences between both the schemes through this article.
About L&T Emerging Businesses Fund
The investment objective of L&T Emerging Businesses Fund is to generate long-term Capital growth 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. L&T Emerging Businesses Fund was incepted on May 13, 2014. Some of the advantages of L&T Emerging Businesses Fund include style diversifier, suitable for investors seeking higher returns, and an experienced investment team. The scheme uses S&P BSE small cap TRI as its benchmark to construct its portfolio.
Supreme Industries Limited, Swaraj Engines Limited, NOCIL Limited, Future Retail Limited, are some of the holdings of L&T Emerging Businesses Fund as of March 31, 2018.
About L&T Midcap Fund
L&T Midcap Fund is also a part of L&T Mutual Fund that primarily focuses to invest in mid-cap stocks. L&T Midcap Fund uses Nifty Free Float Midcap 100 Index to construct its portfolio. This scheme was incepted in the month of August 2004 and is managed by Mr. S. N. Lahiri and Mr. Vihang Naik. As per the scheme’s Asset Allocation objective, it invests around 80-100% of its corpus in shares of mid-cap companies while the remaining in fixed Income and money market instruments. The scheme invests in stocks that form part of its benchmark index.
The top constituents of L&T Midcap Fund’s portfolio (as on 31st March'18) included Cholamandalam Investment and Finance Company Limited, The Ramco Cements Limited, Berger Paints India Limited, Graphite India Limited, and IndusInd Bank Limited.
L&T Emerging Businesses Fund Vs L&T Midcap Fund
Though L&T Emerging Businesses Fund and L&T Midcap Fund belong to the same category, nevertheless; they differ on various parameters. So, let’s understand the differences between both the schemes by comparing these parameters that are classified into four sections which are as follows.
Basics Section
It is the first section in the comparison of the schemes that includes elements such as Fincash Rating, current NAV, and scheme category.
The comparison of Fincash Rating reveals that L&T Emerging Businesses Fund is rated as 5-Star, while L&T Midcap Fund is rated as 4-Star scheme.
With respect to NAV, it can be said that there is a drastic difference between both the schemes. As on April 24, 2018, the NAV of L&T Emerging Businesses Fund was approximately INR 28 while of L&T Midcap Fund is around INR 147. The comparison of scheme category reveals that both the schemes belong to the same category, that is, Equity Mid & Small Cap. The table given below shows the summarized comparison of the basics section.
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 ₹88.6866 ↓ -0.53 (-0.59 %) ₹16,920 on 31 Oct 24 12 May 14 ☆☆☆☆☆ Equity Small Cap 2 High 1.73 1.51 0.26 2.49 Not Available 0-1 Years (1%),1 Years and above(NIL) Essel Long Term Advantage Fund
Growth
Fund Details ₹28.4768 ↑ 0.08 (0.27 %) ₹62 on 30 Nov 24 30 Dec 15 Equity ELSS Moderately High 2.11 1 -1.05 -4.74 Not Available NIL
Performance Section
It is the second section in the comparison that analyses the difference in the Compounded Annual Growth Rate or CAGR returns of both the schemes. This CAGR return is compared at different time intervals such as 3 Month Return, 6 Month Return, 3 Year Return, and 5 Year Return. The comparison of the performance section reveals that L&T Emerging Businesses Fund leads the race in most of the instances. The summary comparison of the performance section is tabulated as follows.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch L&T Emerging Businesses Fund
Growth
Fund Details 5.1% -1.5% 5.7% 29.8% 25.3% 31.7% 22.8% Essel Long Term Advantage Fund
Growth
Fund Details -0.2% -8.5% -0.7% 13.8% 11.4% 13.9% 12.4%
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Yearly Performance Section
The comparison of Absolute Returns generated by both the schemes for a particular year is done in the yearly performance section. The comparison of yearly performance section reveals that L&T Emerging Businesses Fund leads the race. The table given below shows the summary 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% Essel Long Term Advantage Fund
Growth
Fund Details 24.1% -2% 29.4% 8.5% 7.9%
Other Details Section
It is the last section in the comparison that includes elements such as AUM, minimum SIP and lumpsum investment. The minimum SIP and lumpsum investment for both the schemes are same. With respect to minimum SIP amount, it is INR 500 for both the schemes and for the lumpsum amount, it is INR 5,000. However, the comparison of AUM reveals a difference between both the schemes.
As on March 31, 2018, the AUM of L&T Emerging Businesses Fund is around INR 4,404 Crores. On the other hand, for L&T Midcap Fund, the AUM is approximately INR 2,403 Crores.
The summary comparison of the other details section is as shown 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. Essel Long Term Advantage Fund
Growth
Fund Details ₹500 ₹500 Aditya Mulki - 2.73 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 Essel Long Term Advantage Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 30 Nov 19 ₹10,000 30 Nov 20 ₹10,278 30 Nov 21 ₹13,632 30 Nov 22 ₹14,343 30 Nov 23 ₹16,225 30 Nov 24 ₹19,603
Detailed Assets & Holdings 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 Essel Long Term Advantage Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 13.37% Equity 86.63% Equity Sector Allocation
Sector Value Financial Services 27.78% Industrials 11.25% Health Care 10.11% Technology 9.84% Consumer Defensive 9.3% Basic Materials 5.46% Communication Services 4.48% Consumer Cyclical 4.46% Energy 3.96% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Dec 15 | HDFCBANK6% ₹4 Cr 21,500 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Jan 20 | BHARTIARTL4% ₹3 Cr 16,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Dec 19 | RELIANCE4% ₹2 Cr 18,536 Persistent Systems Ltd (Technology)
Equity, Since 31 Jul 22 | PERSISTENT4% ₹2 Cr 4,400 Infosys Ltd (Technology)
Equity, Since 30 Apr 20 | INFY4% ₹2 Cr 13,000 Max Healthcare Institute Ltd Ordinary Shares (Healthcare)
Equity, Since 31 Mar 22 | MAXHEALTH4% ₹2 Cr 22,000 SBI Life Insurance Co Ltd (Financial Services)
Equity, Since 31 Jan 22 | SBILIFE4% ₹2 Cr 13,500 Hindustan Aeronautics Ltd Ordinary Shares (Industrials)
Equity, Since 30 Sep 22 | HAL3% ₹2 Cr 5,000 Rec Limited
Debentures | -3% ₹2 Cr 200,000 Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 28 Feb 21 | SUNPHARMA3% ₹2 Cr 10,500
Therefore, it can be concluded in a nutshell, that both L&T Emerging Businesses Fund and L&T Midcap Fund differ on account of various parameters. As a result, individuals should be careful while making their investment decisions. They should understand the functioning of a scheme completely before they invest their money in it. Investors should also ensure whether the schemes chosen matches their investment objective or not. This will help them to ensure that their money is safe and their objectives are met on time.
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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