Fincash » L&T Emerging Businesses Vs Franklin India Smaller Companies Fund
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L&T Emerging Businesses Fund Vs Franklin India Smaller Companies Fund
L&T Emerging Businesses Fund and Franklin India Smaller Companies Fund both the schemes belong to the small-cap category of Equity Funds. L&T Emerging Businesses Fund is offered by L&T Mutual Fund while; Franklin India Smaller Companies Fund is a part of Franklin Templeton Mutual Fund. Small cap funds are the schemes whose accumulated fund money is invested in schemes of small-cap companies. These companies form the bottom of the pyramid when companies are segregated on the Basis of Market capitalization. These companies are generally start-ups or companies in early stages of development. Small Cap Companies are considered to have a good scope of developments. Though both L&T Emerging Businesses Fund and Franklin India Smaller Companies Fund belong to the same category yet; there are a lot of differences between them. So, let’s understand these differences these schemes through this article.
About L&T Emerging Businesses Fund
L&T Emerging Businesses Fund is offered by L&T Mutual Fund under the small-cap category. It is an open-ended scheme and the inception date being May 13, 2014. The investment objective of the scheme is to attain Capital growth in the long-term by Investing in equity and equity-related instruments of predominantly small-cap companies. L&T Emerging Businesses Fund uses S&P BSE Small Cap Index to form its Portfolio.
As on January 31, 2018, some of the small-cap shares that form part of L&T Emerging Businesses Fund’s portfolio include Carborundum Universal Limited, Supreme Industries Limited, Max Financial Services Limited, City Union Bank Limited, and Centrum Electronics Limited.
This scheme is suitable for investors who are willing to earn higher returns by investing in small-cap shares.
Overview of Franklin India Smaller Companies Fund
Franklin Templeton Mutual Fund manages Franklin India Smaller Companies Fund. This scheme was launched in the year 2006. The investment objective of this scheme is to achieve capital appreciation in the long-term by predominantly investing in shares of small-cap companies.
As on January 31, 2018, some of the shares that were part of the scheme’s portfolio consisted of Finolex Cables Limited, Voltas Limited, Deepak Nitrite Limited, and Nesco Limited.
This scheme aims to recognize companies that are likely to grow and be market leaders in the future. This scheme is suitable for long-term investments with a tenure of five years or more.
L&T Emerging Businesses Fund Vs Franklin India Smaller Companies Fund
Though both L&T Emerging Businesses Fund and Franklin India Smaller Companies Fund belong to the same category yet there exists differences between them. So, let us compare and analyze the differences between both the schemes that are classified into four sections, namely, Basics Section, Performance Section, Yearly Performance Section, and Other Details Section.
Basics Section
The Basics Section compares parameters such as Category of the Scheme, AUM, expense ratio, Fincash Ratings, and Current NAV. To begin with the Scheme’s category it can be said that both the scheme belongs to the same category that is, Equity Mid & Small-cap.
As per Fincash Ratings, L&T Emerging Businesses Fund is rated 5-Star and Franklin India Smaller Companies Fund is rated 4-Star.
The summary of basics section is summarized in the table 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 L&T Emerging Businesses Fund
Growth
Fund Details ₹86.6962 ↓ -0.43 (-0.49 %) ₹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) Franklin India Smaller Companies Fund
Growth
Fund Details ₹177.485 ↓ -1.83 (-1.02 %) ₹14,460 on 30 Sep 24 13 Jan 06 ☆☆☆☆ Equity Small Cap 11 Moderately High 1.78 2.18 0.24 3.81 Not Available 0-1 Years (1%),1 Years and above(NIL)
Performance Section
The Performance Section compares the returns earned by both the schemes at different time intervals such as 3 Month Return, 1 Year Return, and Since Inception Return. Here, the Compounded Annual Growth Rate or CAGR returns are compared between both the schemes. A bird’s eye view on the returns of both the schemes shows that at many time intervals the returns earned by L&T Emerging Businesses Fund is higher than returns of Franklin India Smaller Companies Fund. However, in case of 5 Year Return, there is no data available for L&T Emerging Business Fund as the scheme was launched in the year 2014. The table given below summarizes the performance section of both the schemes.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch L&T Emerging Businesses Fund
Growth
Fund Details -2.6% -0.4% 14.7% 42.6% 26.5% 30.5% 23% Franklin India Smaller Companies Fund
Growth
Fund Details -3.7% -3.8% 11.3% 43.1% 26.1% 29.3% 16.6%
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Yearly Performance Section
The comparison of absolute returns between both the schemes for a particular year is done in the yearly performance section. Even in this section, it can be said that the performance of L&T Emerging Businesses Fund is better. The summary of Yearly Performance Section between both the schemes is tabulated as follows.
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% Franklin India Smaller Companies Fund
Growth
Fund Details 52.1% 3.6% 56.4% 18.7% -5%
Other Details Section
This is the last section in comparison of both the funds. The parameters forming part of this section include Minimum SIP and Lumpsum Investment. With respect to Minimum SIP and Lumpsum Investment, it can be said that both the funds have same SIP and lumpsum amount. The minimum SIP investment for both the schemes is INR 500 while the minimum lumpsum investment is INR 5,000.
The summary of other details section is tabulated as follows.
L&T Emerging Businesses Fund is jointly managed by Mr. S. N. Lahiri and Mr. Karan Desai.
Franklin India Smaller Companies Fund is jointly managed by Mr. R. Janakiraman, Mr. Hari Shyamsundar, and Mr. Srikesh Nair.
Parameters Other Details Min SIP Investment Min Investment Fund Manager L&T Emerging Businesses Fund
Growth
Fund Details ₹500 ₹5,000 Venugopal Manghat - 4.79 Yr. Franklin India Smaller Companies Fund
Growth
Fund Details ₹500 ₹5,000 R. Janakiraman - 13.67 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 31 Oct 19 ₹10,000 31 Oct 20 ₹9,544 31 Oct 21 ₹18,715 31 Oct 22 ₹20,605 31 Oct 23 ₹26,571 31 Oct 24 ₹37,901 Franklin India Smaller Companies Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Oct 19 ₹10,000 31 Oct 20 ₹9,661 31 Oct 21 ₹18,023 31 Oct 22 ₹19,148 31 Oct 23 ₹25,237 31 Oct 24 ₹36,103
Detailed Assets & Holdings Comparison
L&T Emerging Businesses Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 1.98% Equity 98.02% Equity Sector Allocation
Sector Value Industrials 32.47% Consumer Cyclical 15.46% Basic Materials 13.32% Financial Services 12.83% Technology 8.01% Real Estate 5.56% Health Care 3.49% Consumer Defensive 3.47% Energy 1.41% Top Securities Holdings / Portfolio
Name Holding Value Quantity Apar Industries Ltd (Industrials)
Equity, Since 31 Mar 17 | APARINDS3% ₹482 Cr 505,400
↓ -130,000 Aditya Birla Real Estate Ltd (Basic Materials)
Equity, Since 30 Sep 22 | 5000403% ₹458 Cr 1,607,279 Trent Ltd (Consumer Cyclical)
Equity, Since 31 Jan 17 | 5002513% ₹440 Cr 580,400 Brigade Enterprises Ltd (Real Estate)
Equity, Since 31 Jul 19 | 5329292% ₹410 Cr 2,891,084
↓ -138,011 Techno Electric & Engineering Co Ltd (Industrials)
Equity, Since 31 Jan 19 | TECHNOE2% ₹396 Cr 2,473,042
↓ -100,000 Neuland Laboratories Limited
Equity, Since 31 Jan 24 | -2% ₹348 Cr 281,022
↓ -20,000 NCC Ltd (Industrials)
Equity, Since 28 Feb 21 | NCC2% ₹341 Cr 11,291,100 Dixon Technologies (India) Ltd (Technology)
Equity, Since 31 Jul 20 | DIXON2% ₹329 Cr 238,273 K.P.R. Mill Ltd (Consumer Cyclical)
Equity, Since 28 Feb 15 | KPRMILL2% ₹314 Cr 3,286,897 Supreme Petrochem Ltd (Basic Materials)
Equity, Since 30 Sep 16 | SPLPETRO2% ₹309 Cr 3,565,768 Franklin India Smaller Companies Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 2.51% Equity 97.35% Equity Sector Allocation
Sector Value Industrials 27.15% Financial Services 17.06% Consumer Cyclical 14.99% Health Care 8.57% Basic Materials 8.4% Real Estate 5.51% Technology 5.45% Consumer Defensive 4.88% Utility 2.83% Energy 0.93% Communication Services 0.29% Top Securities Holdings / Portfolio
Name Holding Value Quantity Brigade Enterprises Ltd (Real Estate)
Equity, Since 30 Jun 14 | 5329294% ₹548 Cr 3,868,691 Kalyan Jewellers India Ltd (Consumer Cyclical)
Equity, Since 31 May 22 | KALYANKJIL4% ₹509 Cr 6,963,469 Deepak Nitrite Ltd (Basic Materials)
Equity, Since 31 Jan 16 | DEEPAKNTR3% ₹403 Cr 1,387,967 Equitas Small Finance Bank Ltd Ordinary Shares (Financial Services)
Equity, Since 31 Oct 20 | EQUITASBNK3% ₹371 Cr 48,064,081 Aster DM Healthcare Ltd Ordinary Shares (Healthcare)
Equity, Since 31 Jul 23 | ASTERDM2% ₹352 Cr 8,473,781 Blue Star Ltd (Industrials)
Equity, Since 31 Jan 15 | BLUESTARCO2% ₹331 Cr 1,605,632 Karur Vysya Bank Ltd (Financial Services)
Equity, Since 31 Oct 12 | 5900032% ₹330 Cr 15,398,917 Crompton Greaves Consumer Electricals Ltd (Consumer Cyclical)
Equity, Since 31 Jan 24 | CROMPTON2% ₹287 Cr 6,900,000 J.B. Chemicals & Pharmaceuticals Ltd (Healthcare)
Equity, Since 30 Jun 14 | JBCHEPHARM2% ₹272 Cr 1,448,723 Amara Raja Energy & Mobility Ltd (Industrials)
Equity, Since 31 Dec 23 | 5000082% ₹259 Cr 1,819,819
Thus, from the above pointers, it can be said that both the schemes differ on a number of parameters though they belong to the same category. As a consequence, one should be very careful while investing in a scheme by understanding its modalities completely. In addition, people should also check whether the scheme’s methodology helps them accomplish their objectives. Moreover, they can even consult a financial advisor. This will help them to ensure that the money invested is safe and it paves way for wealth creation.
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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