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L&T Midcap Fund and BNP Paribas Mid Cap Fund both the schemes differ on a number of parameters. These differences exist in spite of both the schemes being part of the same category of Equity Funds. mid cap funds invest their pooled money in stocks of companies being part of the mid-cap category. These companies are second-in-line in after large-cap companies in terms of their Market capitalization. Mid-cap companies are a good investment option for long-term investment. These schemes are a good option for investors having a long-term investment tenure. The market capitalization of mid-cap companies ranges between INR 500 – INR 10,000 Crores. Though there are a number of schemes in one category, nevertheless; numerous differences exist between them. So, let us understand the differences between L&T Midcap Fund and BNP Paribas Mid Cap Fund through this article.
L&T Midcap Fund is offered and managed by L&T Mutual Fund under the mid-cap category. This scheme was incepted on August 09, 2004 and uses Nifty Midcap 100 TRI Index to construct its Portfolio. The investment objective of this scheme of L&T Mutual Fund is to generate Capital appreciation by having exposure in stocks of mid-cap companies forming part of its benchmark index. As per the Asset Allocation objective, the scheme invests around 80-100% of its pooled money in equity and equity-related instruments while the remaining in fixed Income and money market instruments. L&T Midcap Fund is jointly managed by Mr. S. N. Lahiri and Mr. Vihang Naik. As of March 2018, some of the constituents of L&T Midcap Fund’s portfolio include Ramco Cements Limited, Graphite India Limited, AIA Engineering Limited, Engineers India Limited, and Avanti Feeds Limited.
BNP Paribas Mid Cap Fund is a part of BNP Paribas Mutual Fund and it uses Nifty Free Float Midcap 100 TRI as its benchmark to build its basket of assets. This scheme is suitable for individuals looking for individuals seeking exposure in mid and small capitalization segments along with wealth creation in the long-term. This scheme of BNP Paribas Mutual Fund allocates a minimum of 65% of its corpus in stocks of companies belonging to mid-cap companies. It strives to identify the companies that have good opportunities of growth in the long-term. In addition, it also ensures to identify the companies that are driven by the dynamic style of management and entrepreneurial flair. Mr. Abhijeet Dey and Mr. Karthikraj Lakshmanan are the joint fund managers of BNP Paribas Mid Cap Fund.
L&T Midcap Fund and BNP Paribas Mid Cap Fund differ on account of a number of parameters that are classified into four sections. These sections are basics section, performance section, yearly performance section, and other details section. The explanation of these sections is as follows.
This is the first section in the comparison of the schemes. The parameters forming part of this scheme is Current NAV, Fincash Rating, and scheme category. On the Basis of current NAV, it can be said that both the schemes differ considerably. The NAV of L&T Midcap Fund was approximately INR 146 and of BNP Paribas Mid Cap Fund was around INR 33 as of May 03, 2018. With respect to Fincash Rating, it can be said that L&T Mutual Fund’s scheme is rated as 4-Star while BNP Paribas Mutual Fund’s scheme is rated as 3-Star. On the basis of scheme category, both the schemes are a part of Equity Mid & small cap Category. 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 Essel Long Term Advantage Fund
Growth
Fund Details ₹28.7641 ↓ -0.17 (-0.60 %) ₹67 on 30 Sep 24 30 Dec 15 Equity ELSS Moderately High 2.11 1.85 -0.88 -6.73 Not Available NIL BNP Paribas Mid Cap Fund
Growth
Fund Details ₹101.086 ↓ -0.21 (-0.20 %) ₹2,247 on 30 Sep 24 2 May 06 ☆☆☆ Equity Mid Cap 18 High 2.07 2.84 -0.72 6.09 Not Available 0-12 Months (1%),12 Months and above(NIL)
Being the second section in the comparison, it analyzes the differences in the Compounded Annual Growth Rate or CAGR returns between the schemes. This CAGR returns are compared at different intervals such as 1 Year Return, 3 Year Return, 5 Year Return, and Return since Inception. The comparison of performance section shows that there is a significant difference between the returns generated by both the schemes. In most of the instances, the performance of L&T Midcap Fund leads the race. 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 Essel Long Term Advantage Fund
Growth
Fund Details -3.9% -3.6% 9% 24.8% 10.5% 14.3% 12.7% BNP Paribas Mid Cap Fund
Growth
Fund Details -3.2% -1.1% 11.5% 41.1% 19% 25.6% 13.3%
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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 comparison of absolute returns states that, in certain years, BNP Paribas Mid Cap Fund has performed better as compared to L&T Midcap Fund while in other years, L&T Midcap Fund had done well in comparison to BNP Paribas Mid Cap Fund. The comparison of yearly performance section is as follows.
Parameters Yearly Performance 2023 2022 2021 2020 2019 Essel Long Term Advantage Fund
Growth
Fund Details 24.1% -2% 29.4% 8.5% 7.9% BNP Paribas Mid Cap Fund
Growth
Fund Details 32.6% 4.7% 41.5% 23.1% 5.2%
AUM, minimum SIP investment, minimum lumpsum investment, and exit load are some of the parameters that form part of this last section in the comparison of the schemes. The SIP and lumpsum amount for both the schemes is same, that is, INR 500 and INR 5,000 respectively. Also, the exit load for both the schemes is same. However, there is a significant difference between the AUM of both the schemes. The AUM of L&T’s scheme was around INR 2,403 Crores and of BNP Paribas’s schemes was approximately INR 774 Crores, as of March 2018. The comparison of other details section is summarized in the table given below.
Parameters Other Details Min SIP Investment Min Investment Fund Manager Essel Long Term Advantage Fund
Growth
Fund Details ₹500 ₹500 Aditya Mulki - 2.56 Yr. BNP Paribas Mid Cap Fund
Growth
Fund Details ₹300 ₹5,000 Shiv Chanani - 2.22 Yr.
Essel Long Term Advantage Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Oct 19 ₹10,000 31 Oct 20 ₹9,506 31 Oct 21 ₹14,326 31 Oct 22 ₹14,116 31 Oct 23 ₹15,580 31 Oct 24 ₹19,769 BNP Paribas Mid Cap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Oct 19 ₹10,000 31 Oct 20 ₹10,608 31 Oct 21 ₹18,274 31 Oct 22 ₹18,904 31 Oct 23 ₹21,768 31 Oct 24 ₹31,443
Essel Long Term Advantage Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 6.73% Equity 93.27% Equity Sector Allocation
Sector Value Financial Services 27.51% Industrials 12.18% Technology 11.46% Consumer Defensive 10.04% Health Care 9.63% Consumer Cyclical 8.89% Basic Materials 5.04% Communication Services 4.43% Energy 4.08% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Dec 15 | HDFCBANK6% ₹4 Cr 21,500 Reliance Industries Ltd (Energy)
Equity, Since 31 Dec 19 | RELIANCE4% ₹3 Cr 9,268 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Jan 20 | BHARTIARTL4% ₹3 Cr 16,000 SBI Life Insurance Co Ltd (Financial Services)
Equity, Since 31 Jan 22 | SBILIFE4% ₹2 Cr 13,500 Infosys Ltd (Technology)
Equity, Since 30 Apr 20 | INFY4% ₹2 Cr 13,000 Persistent Systems Ltd (Technology)
Equity, Since 31 Jul 22 | PERSISTENT4% ₹2 Cr 4,400 Hindustan Aeronautics Ltd Ordinary Shares (Industrials)
Equity, Since 30 Sep 22 | HAL3% ₹2 Cr 5,000 Max Healthcare Institute Ltd Ordinary Shares (Healthcare)
Equity, Since 31 Mar 22 | MAXHEALTH3% ₹2 Cr 22,000 Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 28 Feb 21 | SUNPHARMA3% ₹2 Cr 10,500 Rural Electrification Corporation Limited
Debentures | -3% ₹2 Cr 200,000
↑ 200,000 BNP Paribas Mid Cap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 4.16% Equity 94.97% Debt 0.87% Equity Sector Allocation
Sector Value Consumer Cyclical 20.36% Financial Services 19.42% Health Care 12.47% Technology 11.95% Industrials 11.6% Basic Materials 8.45% Consumer Defensive 3.44% Real Estate 2.46% Communication Services 1.83% Utility 1.01% Energy 0.99% Top Securities Holdings / Portfolio
Name Holding Value Quantity PB Fintech Ltd (Financial Services)
Equity, Since 28 Feb 23 | 5433904% ₹81 Cr 500,000 Trent Ltd (Consumer Cyclical)
Equity, Since 31 Jan 19 | 5002513% ₹76 Cr 100,000
↓ -15,000 Hitachi Energy India Ltd Ordinary Shares (Technology)
Equity, Since 31 Dec 22 | POWERINDIA3% ₹73 Cr 50,000 Phoenix Mills Ltd (Real Estate)
Equity, Since 31 Oct 22 | 5031002% ₹55 Cr 300,000 KPIT Technologies Ltd (Technology)
Equity, Since 31 Jan 23 | KPITTECH2% ₹54 Cr 330,000 TVS Motor Co Ltd (Consumer Cyclical)
Equity, Since 31 Jul 21 | 5323432% ₹51 Cr 180,000 Sundaram Finance Ltd (Financial Services)
Equity, Since 31 May 16 | SUNDARMFIN2% ₹49 Cr 93,000 National Aluminium Co Ltd (Basic Materials)
Equity, Since 30 Apr 24 | 5322342% ₹46 Cr 2,200,000 Coromandel International Ltd (Basic Materials)
Equity, Since 31 May 24 | 5063952% ₹45 Cr 270,000 Dixon Technologies (India) Ltd (Technology)
Equity, Since 31 Dec 23 | DIXON2% ₹45 Cr 32,500
Therefore, from the aforesaid parameters, it can be said that both the schemes differ on account of numerous parameters. Resultantly, individuals should be careful while choosing any of the schemes. They should check whether the scheme matches their investment objectives or not. Also, they must have a thorough understanding of the scheme chosen. This will help individuals to choose their objectives on time along with ensuring that their investment is safe.
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