L&T India Value Fund Vs L&T Equity Fund

There are numerous differences between L&T India value fund and L&T Equity Fund. These differences exist in spite both the schemes belonging to the same category of Mutual Fund and same fund house. In simple terms, Diversified Funds are the category of Equity Funds whose corpus is invested in stocks of large-cap, mid-cap, and small-cap companies. These schemes try to exploit the opportunities of each Market-caps thereby; maximizing the returns for its investors. Diversified funds, on a general note, invest around 40-60% of their corpus in Large cap funds, 10-40% of their corpus in mid cap funds, and a maximum of 10% in Small cap funds. In certain situations, the investment in small-cap stocks may also be equal to nil. Diversified funds are a good option for medium to long-term investment tenure. So, let us understand the differences between L&T India Value Fund and L&T Equity Fund through this article.

L&T India Value Fund

L&T India Value Fund is suitable for investors seeking for exposure in equity and equity-related securities in Indian markets thereby generating Capital growth in the long-term. The scheme invests in stocks of Indian companies with more focus on undervalued securities. L&T India Value Fund was launched on January 08, 2010 and is managed jointly by Mr. Venugopal Mangat and Mr. Karan Desai. L&T India Value Fund uses S&P BSE 200 TRI Index as its base to formulate its basket of assets. Some of the benefits of this scheme of L&T Mutual Fund are long-term wealth creator, style diversification, and 360-degree approach. As on March 31, 2018, some of the constituents that form part of L& India Value Fund include The Federal Bank Limited, Larsen & Toubro Limited, Tata Steel Limited, Godrej Industries Limited, and HCL Technologies Limited.

L&T Equity Fund

The objective of L&T Equity Fund is to achieve capital growth in the long-term by Investing in a diversified Portfolio predominantly consisting of equity and equity-related securities. Some of the benefits of L&T Equity Fund are ideal core investment, greater diversification, and 360-degree approach. Based on the Asset Allocation of this scheme, in normal circumstances, the invests around 95% of its pooled money in equity and equity-related instruments and the remaining 5% in fixed Income and money market instruments. Mr. S. N. Lahiri and Mr. Karan Desai jointly manage the L&T Equity Fund. Axis Bank Limited, Tata Consultancy Services Limited, Lupin Limited, Vedanta Limited, and Pidilite Industries Limited are some of the constituents that form part of L&T Equity Fund’s portfolio as on March 31, 2018.

L&T India Value Fund Vs L&T Equity Fund

L&T India Value Fund and L&T Equity Fund differ on numerous parameters though they belong to the same fund house and same category. So, let’s analyze these differences between the schemes by comparing these parameters that are divided into four sections, namely, basics section, performance section, yearly performance section, and other details section.

Basics Section

It is the first section in the comparison that includes parameters such as scheme category, Fincash Rating, and current NAV. To being with the scheme category, it can be said that both the schemes belong to the same category of Equity Diversified. Moving on to the next parameter, that is, Fincash Rating, it can be said that L&T India Value Fund is a 5-Star Rated scheme and L&T Equity Fund is a 4-Star Rated scheme. However, with respect to the NAV of both the schemes, there exists a significant difference. As on April 30, 2018, the NAV of L&T India Value Fund was approximately INR 38 and of L&T Equity Fund was approximately INR 85. The performance of the basics section is tabulated as follows.

Performance Section

The comparison of Compounded Annual Growth Rate or CAGR returns at different time periods is done in the performance section. These time periods include 1 Month Return 3 Month Return, 3 Year Return, and 5 Year Return. The comparison of the performance section states that in certain instances, L&T India Value Fund leads the race while in others, L&T Equity Fund leads the race. The table given below summarizes the comparison of the performance section.

Yearly Performance Section

Being the third section in the comparison, it analyzes the differences in the absolute returns generated by both the schemes for a particular year. The analysis of absolute returns states that in most of the instances, L&T India Value Fund has performed better as compared to L&T Equity Fund. The summary of yearly performance section is as follows.

Other Details Section

It is the last section in the comparison and includes elements such as AUM, minimum SIP investment, and minimum lumpsum investment. The minimum SIP and lumpsum investment for both the schemes are same. The minimum SIP amount for L&T India Value Fund and L&T Equity Fund is INR 500. On the other hand, the minimum lumpsum amount for both the schemes is INR 5,000. However, both the schemes differ considerably with respect to the AUM. The AUM of L&T India Value Fund was around INR 7,347 Crores while of L&T Equity Fund was nearly INR 2,589 Crores as of March 31, 2018. The table given below summarizes the comparison of the other details section.

Growth of 10k Investments over the years