How is CCP different from LCP?

The main difference between the 2 portfolios is as follows:

1. CCP focuses on BSE500 companies only. Hence the average market cap of the stocks in the portfolio is US$20bn. LCP focuses primarily on stocks below the BSE500. Therefore the average market cap of stocks in the portfolio is US$0.3bn. As a result, liquidity in LCP stocks is limited (whilst the same is not a challenge for CCP)
2. CCP's returns are similar to the underlying earnings compounding of the portfolio i.e. around 20% - see: https://marcellus.in/newsletter/consistent-compounders/ccps-performance-in-fy20-fully-supported-by-earnings-growth/ In LCP, we are banking on not just 20-25% earnings compounding, we are also expecting to see these small-cap stocks discovered by the large mutual fund houses. This sort of discovery leads to a P/E re-rating for small-cap stocks and that in turn could lead to the portfolio level compounding being 30%+.

In short, while LCP could potentially give you better returns than CCP, the volatility of the LCP portfolio is comparable to the Nifty while CCP's volatility is typically half that of the Nifty.