L&T India Value Fund Vs Principal Multi Cap Growth Fund

L&T India value fund and Principal Multi Cap Growth Fund both the schemes form part of the same category of Diversified Funds, but they still have numerous differences between them. Diversified funds, in simple language, means the Equity Fund that invests its money across Market capitalization i.e., large-cap, mid-cap and small cap. These schemes follow a Value investing or growth Investing strategy. These schemes are a good investment option for medium and long-term tenure. Generally, diversified funds invest around 40-60% of their fund money in large-cap stocks, 10-40% in mid-cap stocks, and a maximum of 10% in small-cap stocks. So, let us understand the differences between both L&T India Value Fund and Principal Multi Cap Growth Fund by comparing various parameters through this article.

L&T India Value Fund

L&T India Value Fund’s investment objective is to generate long-term Capital appreciation by mainly investing the money in stocks of various companies with a higher focus on undervalued securities. L&T India Value Fund was launched in the month of January 2010. The scheme uses S&P BSE 200 TRI Index as its benchmark to construct its Portfolio. L&T India Value Fund is jointly managed by Mr. Venugopal Manghat and Mr. Karan Desai. Some of the key benefits of L&T India Value Fund are long-term wealth creator wherein; the scheme focuses on fundamentals. The next advantage is style diversification through which the scheme tries to focus on identifying the undervalued stocks. Based on the Asset Allocation objective of the scheme, it invests around 80-100% of its funds in equity and equity-related securities of Indian companies.

Principal Multi Cap Growth Fund (Erstwhile Principal Growth Fund)

Principal Multi Cap Growth Fund (earlier known as Principal Growth Fund) is a part of Principal Mutual Fund. This open-ended diversified fund invests its corpus across large, mid, and small-cap stocks. This fund is suitable for individuals seeking for long-term capital growth by having exposure in stocks of companies across market capitalization. The scheme uses Nifty 500 Index as its benchmark to construct its portfolio and is managed by Mr. P. V. K. Mohan. As on March 31, 2018, some of the constituents of Principal Multi Cap Growth Fund’s portfolio consisted of stocks like HDFC Bank Limited, Karur Vyasa Bank Limited, Dabur India Limited, Britannia Industries Limited, and Chambal Fertilizers and Chemicals Limited. Some of the aspects that Principal Multi Cap Growth Fund uses while selecting the stocks for investments include superior management quality, good growth potentials, financially sound companies, and sustainable competitive advantage.

L&T India Value Fund Vs Principal Multi Cap Growth Fund

Though both L&T India Value Fund and Principal Multi Cap Growth Fund belong to the same category, nevertheless; there are numerous differences between them. So, let us understand the differences between these schemes by comparing the parameters that are classified into four sections, as follows.

Basics Section

Scheme Category, current NAV, and Fincash Rating are some of the parameters that form part of the basics section. To begin with the scheme category, it can be said that both the schemes belong to the same category of Equity Diversified. With respect to the Fincash Rating, it can be said that L&T India Value Fund is a 5-Star rated scheme while Principal Multi Cap Growth Fund is a 4-Star rated scheme. However, the comparison of current NAV reveals a considerable difference between both the schemes. As on April 30, 2018, the NAV of L&T India Value Fund was approximately INR 38 while of Principal Multi Cap Growth Fund was around INR 150. The summary of the basics section is as follows.

Performance Section

Performance section is the second section in the comparison that analyzes the differences in the CAGR or Compounded Annual Growth Rate returns of both the schemes. These CAGR returns are compared at various time intervals such as 1 Month Return, 6 Month Return, 3 Year Return, 5 Year Return, and Return Since Inception. The analysis of CAGR returns shows that in certain instances, Principal Multi Cap Growth Fund has done well while in others, L&T India Value Fund has performed better. The summary comparison of the performance section is tabulated as follows.

Yearly Performance Section

Being the third section in the comparison, it analyses the differences in the absolute returns generated for a particular year by both the schemes. The comparison of the yearly performance section states that for certain years, L&T India Value Fund leads the race and in others, Principal Multi Cap Growth Fund leads the race. The summary comparison of yearly performance section is as shown in the table given below.

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Other Details Section

Being the last section in the comparison, it includes elements such as AUM, minimum SIP investment, minimum lumpsum investment, and others. The minimum lumpsum investment for both the schemes is same, that is, INR 5,000. However, both the schemes differ significantly on account of AUM. As on March 31, 2018, the AUM of Principal Multi Cap Growth Fund was around INR 629 Crores and of L&T India Value Fund was nearly INR 7,347 Crores. The SIP Investment for both the schemes is also different. In case of L&T Mutual Fund’s scheme, the SIP amount is INR 500 and for Principal Mutual Fund’s scheme, it is INR 2,000. The table given below summarizes the comparison of other details section.

Growth of 10k Investments over the years