Fincash » Principal Emerging Bluechip Vs Principal Multi Cap Growth Fund
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Principal Emerging Bluechip Fund and Principal Multi Cap Growth Fund both belong to the diversified equity category of Mutual Fund. Diversified Funds, in simple terms, are the Mutual Fund schemes that invest their pooled money in shares of companies across Market capitalization. On a general note, these funds invest around 46-60% of their corpus in Large cap funds, 10-40% of their corpus in mid cap funds, and up to 10% of their corpus in Small cap funds. Diversified Funds are also known as Flexicap or Multicap Funds. In certain instances, sometimes the funds may or may not invest their corpus in small-cap funds. These schemes follow a value or growth style of investing in Mutual Funds. Though Principal Emerging Bluechip Fund and Principal Multi Cap Growth Fund are a part of the same category, nevertheless; they differ on account of numerous parameters. So, let us understand the differences between these schemes through this articles.
Principal Emerging Bluechip Fund is offered and managed by Principal Mutual Fund. The benchmark index used by Principal Emerging Bluechip Fund to construct its Portfolio is S&P BSE 250 Large Midcap Index. This scheme was launched on November 12, 2008. Principal Emerging Bluechip Fund is solely managed by Mr. Dhimant Shah. IndusInd Bank Limited, AIA Engineering Limited, Ramkrishna Forgings Limited, and Aurobindo Pharma Limited. Are some of the top holdings that form part of this scheme’s portfolio. As per the Asset Allocation objective of the scheme, it invests around 35-65% of its fund money in equity and equity-related instruments of large-cap and mid-cap companies respectively. This scheme is suitable for investors looking for Investing in shares of large & mid-cap companies thereby attaining an appreciation of Capital in the long-term.
The objective of Principal Multi Cap Growth Fund (earlier known as Principal Growth Fund) is to attain capital appreciation in the long-term tenure. This scheme of Principal Mutual Fund is an open-ended diversified scheme that invests in large-cap, mid-cap, and small-cap funds. The scheme uses Nifty 500 Index as its benchmark to build its portfolio. The fund manager managing Principal Multi Cap Growth Fund is Mr. P.V. K. Mohan. Based on the asset allocation objective of the scheme, it invests around 65-100% of its pooled money in equity and equity-related instruments of various companies while the remaining in shares of fixed Income and money market instruments. As on March 31, 2018, some of the top constituents of Principal Multi Cap Growth Fund consisted of City Union Bank Limited, ITC Limited, NTPC Limited, HCL Technologies Limited, and Britannia Industries Limited.
Principal Emerging Bluechip Fund and Principal Multi Cap Growth Fund differ on account of numerous parameters. So, let us understand the differences between both the schemes by analyzing these parameters that are categorized into four section as follows.
Being the first section in the comparison, it includes parameters such as current NAV, scheme category, and Fincash Rating. With respect to scheme category, it can be said that both the schemes belong to the scheme category of Equity Diversified. The comparison of Fincash Rating states that Principal Emerging Bluechip Fund is rated as 5-Star rated scheme and Principal Multi Cap Growth Fund is rated as 4-Star rated scheme. The current NAV of both the schemes show that there is a difference between both the schemes. As on April 26, 2018, the NAV of Principal Emerging Bluechip Fund is nearly INR 110 and of Principal Multi Cap Growth Fund is around INR 148. The summary of the basics section is as follows.
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 Principal Emerging Bluechip Fund
Growth
Fund Details ₹183.316 ↑ 2.03 (1.12 %) ₹3,124 on 30 Nov 21 12 Nov 08 ☆☆☆☆☆ Equity Large & Mid Cap 1 Moderately High 2.08 2.74 0.22 2.18 Not Available 0-1 Years (1%),1 Years and above(NIL) Principal Multi Cap Growth Fund
Growth
Fund Details ₹372.9 ↑ 1.19 (0.32 %) ₹2,854 on 30 Sep 24 25 Oct 00 ☆☆☆☆ Equity Multi Cap 12 Moderately High 2.05 2.52 -0.45 0.64 Not Available 0-365 Days (1%),365 Days and above(NIL)
This section compares the CAGR or Compounded Annual Growth Rate returns of both the schemes at different intervals. These time intervals include 1 Month Return, 3 Month Return, 1 Year Return, and Return since Inception. The comparison of CAGR returns reveals that in many instances, Principal Emerging Bluechip 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 Principal Emerging Bluechip Fund
Growth
Fund Details 2.9% 2.9% 13.6% 38.9% 21.9% 19.2% 24.8% Principal Multi Cap Growth Fund
Growth
Fund Details -5.8% -1.9% 11.6% 38.3% 16.7% 21.6% 16.3%
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The comparison of absolute returns generated by the schemes for a particular year is compared in the yearly performance section. The analysis of the yearly performance section states that in certain years Principal Emerging Bluechip Fund has performed better while in others, Principal Multi Cap Growth Fund has done well. The table given below summarizes the comparison of yearly performance section.
Parameters Yearly Performance 2023 2022 2021 2020 2019 Principal Emerging Bluechip Fund
Growth
Fund Details 0% 0% 0% 0% 0% Principal Multi Cap Growth Fund
Growth
Fund Details 31.1% -1.6% 46.3% 15% 3.9%
This being the last section in the comparison includes elements such as AUM, minimum SIP investment, and minimum lumpsum investment. The minimum SIP and lumpsum investment are same for both the schemes. The SIP amount for both the schemes is INR 2,000 while the lumpsum amount for both the schemes is INR 5,000. However, there is a significant difference between the AUM of both the schemes. As on March 31, 2018, the AUM of Principal Emerging Bluechip Fund is approximately INR 1,657 Crores and of Principal Multi Cap Growth Fund is around INR 629 Crores. The table given below summarizes the comparison of other details section.
Parameters Other Details Min SIP Investment Min Investment Fund Manager Principal Emerging Bluechip Fund
Growth
Fund Details ₹100 ₹5,000 Principal Multi Cap Growth Fund
Growth
Fund Details ₹100 ₹5,000 Ratish Varier - 2.75 Yr.
Principal Emerging Bluechip Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Oct 19 ₹10,000 31 Oct 20 ₹10,424 31 Oct 21 ₹17,267 Principal Multi Cap Growth Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Oct 19 ₹10,000 31 Oct 20 ₹9,964 31 Oct 21 ₹16,741 31 Oct 22 ₹17,324 31 Oct 23 ₹19,239 31 Oct 24 ₹26,598
Principal Emerging Bluechip Fund
Growth
Fund Details Asset Allocation
Asset Class Value Equity Sector Allocation
Sector Value Top Securities Holdings / Portfolio
Name Holding Value Quantity Principal Multi Cap Growth Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 4.06% Equity 95.94% Equity Sector Allocation
Sector Value Financial Services 19.83% Industrials 16.44% Consumer Cyclical 15.29% Technology 8.64% Energy 8.36% Health Care 7.75% Basic Materials 5.52% Communication Services 4.99% Consumer Defensive 3.98% Utility 2.85% Real Estate 2.28% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 31 Jan 05 | RELIANCE6% ₹168 Cr 556,134 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jul 09 | HDFCBANK4% ₹122 Cr 746,575 Power Finance Corp Ltd (Financial Services)
Equity, Since 30 Apr 23 | 5328103% ₹93 Cr 1,689,887 Larsen & Toubro Ltd (Industrials)
Equity, Since 31 May 23 | LT3% ₹85 Cr 230,571 Infosys Ltd (Technology)
Equity, Since 30 Apr 08 | INFY3% ₹83 Cr 425,850 NTPC Ltd (Utilities)
Equity, Since 31 Mar 23 | 5325553% ₹81 Cr 1,955,077 Indian Bank (Financial Services)
Equity, Since 31 Dec 23 | 5328143% ₹76 Cr 1,339,692 Lupin Ltd (Healthcare)
Equity, Since 30 Apr 24 | 5002572% ₹70 Cr 311,373 KSB Ltd (Industrials)
Equity, Since 31 Jul 22 | KSB2% ₹70 Cr 749,415 TVS Holdings Ltd (Consumer Cyclical)
Equity, Since 30 Sep 23 | 5200562% ₹68 Cr 49,053
Therefore, it can be concluded that there are numerous differences between both the schemes. Consequently, individuals should be careful while investing in any of the schemes. They should check whether the scheme matches their investment objective or not and understand its modalities thoroughly. If required, people can also consult a financial advisor. This will help them to get more clarity and ensure that their objectives are met on time.