Principal Emerging Bluechip Fund Vs BNP Paribas Multi Cap Fund

BNP Paribas Multi Cap Fund and Principal Emerging Bluechip Fund both the schemes belong to the diversified category of Equity Funds. Diversified Funds are also known as Multicap or Flexicap Funds. These schemes invest their corpus in equity and equity-related instruments across companies. Diversified funds adopt a value or growth style of Investing wherein they invest in companies whose share prices are lower in comparison to their valuations, Earnings, and growth potentials. Diversified schemes are considered a good investment option for long-term tenure. Though Principal Emerging Bluechip Fund and BNP Paribas Multi Cap Fund belong to the same category yet, they differ on account of numerous parameters such as current NAV, CAGR returns, AUM, and so on. So, let us understand the differences between these schemes through this article.

Principal Emerging Bluechip Fund

Principal Emerging Bluechip Fund is an open-ended diversified scheme of Principal Mutual Fund. This scheme was launched in the month of November 2008. Principal Emerging Bluechip Fund is solely managed by Mr. Dhimant Shah and its uses S&P BSE 250 Large Midcap Index as its benchmark index to build its Portfolio. The objective of Principal Emerging Bluechip Fund is to attain long-term Capital appreciation by predominantly investing in shares of large-cap and mid-cap companies. As on March 31, 2018, some of the constituents that form part of Principal Emerging Bluechip Fund’s portfolio are IndusInd Bank Limited, AIA Engineering Limited, Ramkrishna Forgings Limited, and Aurobindo Pharma Limited. The risk-appetite of Principal Emerging Bluechip Fund is moderately high. Individuals seeking for a fund that invests in stocks and equity derivatives of large and mid-cap companies can choose to invest in Principal Emerging Bluechip Fund.

BNP Paribas Multi Cap Fund (Erstwhile BNP Paribas Dividend Yield Fund)

BNP Paribas Multi Cap Fund (earlier known as BNP Paribas Dividend Yield Fund) is managed and offered by BNP Paribas Mutual Fund. This scheme is suitable for individuals seeking for capital growth along with regular Income stream from a portfolio of high dividend yield stocks. BNP Paribas Multi Cap Fund is jointly managed by Mr. Karthikraj Lakshmanan and Mr. Abhijeet Dey. This scheme was incepted on September 15, 2005. The scheme uses Nifty 200 TRI Index as its benchmark to construct its portfolio. The scheme aims form capital appreciation from a portfolio of equity and equity-related instruments, mainly into high dividend yield stocks. These stocks are at ones whose dividend yield at the time of investment is more than 0.5%. As on March 31, 2018, some of the top constituents of BNP Paribas Multi Cap Fund are Hero MotoCorp Limited, Deepak Fertilizers and Petrochemicals Corporation Limited, Larsen & Toubro Limited, and HDFC Bank Limited.

Principal Emerging Bluechip Fund Vs BNP Paribas Multi Cap Fund

There are a number of differences between Principal Emerging Bluechip Fund and BNP Paribas Multi Cap Fund on the Basis of numerous parameters. So, let us understand the differences between these schemes by analyzing these parameters that are categorized into four sections. These sections are basics section, performance section, yearly performance section, and other details section.

Basics Section

This section is the first section in the comparison and includes elements such as Current NAV, Fincash Rating, and scheme category. To begin with Fincash Rating, it can be said the Principal Emerging Bluechip Fund is rated as 5-Star while, BNP Paribas Multi Cap Fund is rated as 4-Star scheme. The comparison of scheme category reveals that both the schemes belong to the same category of Equity Diversified. However, the comparison of NAV reveals a difference between both the schemes. As on April 26, 2018, the NAV of Principal Emerging Bluechip Fund was approximately INR 110 while of BNP Paribas Multi Cap Fund was approximately INR 47. The summary of basics section is as shown in the table given below.

Performance Section

The comparable parameter forming part of the performance section is Compounded Annual Growth Rate or CAGR returns. These CAGR returns are compared at various time intervals such as 3 Month Return, 6 Month Return, 3 Year Return, and 5 Year Return. The comparison of the CAGR returns shows that in many instances, Principal Emerging Bluechip Fund has performed better. The table given below summarizes the comparison of the performance section.

Yearly Performance Section

Being the third section in the comparison, it analyzes the difference in the absolute returns generated by both the schemes for a particular year. The analysis of the yearly performance section also shows that, in many instances, Principal Emerging Bluechip Fund leads the race. The summary comparison of the yearly performance section is tabulated as follows.

Other Details Section

AUM, minimum SIP investment, and minimum lumpsum investment are some of the comparable elements forming part of the other details section. The minimum SIP investment is different for both the schemes. In case of Principal Mutual Fund’s scheme, the minimum SIP investment is INR 2,000 while in case of BNP Paribas Mutual Fund’s scheme, it is INR 500. Even the comparison of AUM shows a significant difference between both the schemes. The AUM of Principal Emerging Bluechip Fund is approximately INR 1,657 Crores and of BNP Paribas Multi Cap Fund is approximately INR 797 Crores as of March 31, 2018. However, the minimum lumpsum investment is same for both the schemes, that is, INR 5,000. The summary of other details section is as follows.

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