Franklin India Focused Equity Fund is a fund under the AMC, Franklin Templeton Mutual Fund, which manages total assets to the tune of approximately ₹1,00,000 crore.
As the name clearly suggests, this fund is focused on investment in the equity asset class.
Moreover, the fund is an open-ended equity scheme which seeks to invest in a maximum of 30 stocks only.
Broadly, the scheme focuses on the mid-cap space, which means that the scheme invests in securities, primarily equity, across different market capitalizations.
Some securities in this fund focus on large-cap stocks which are fairly stable in their returns and risk meter.
Multi-cap funds focus on investing across different market capitalizations to provide a good blend of risk and return.
The investment objective of this fund is to achieve capital appreciation through investments in Indian companies/sectors with high growth rates.
This fund adopts a top-down (macro analysis to identify sectors) and a bottom-up approach (microanalysis to pick stocks within these sectors).
|AUM||₹ 7,356 Cr. (as on Sep 5, 2018)|
|NAV||₹ 42.1 (as on Sep 5, 2018)|
|Minimum SIP Investment||₹ 1,000|
|Minimum SIP Investment||₹5,000|
|Returns – 1 Year||9.1%|
|Returns – 3 Years||14.1%|
|Returns – 5 Years||25.8%|
|Risk Grade||Moderately high Risk|
|Exit Load||1% if redeemed before 1 year|
|Fund Manager||Anand Radhakrishnan, Roshi Jain, Shrikesh Nair|
Franklin India Focused Equity Fund is an equity oriented focused fund which has given 5-year returns of approximately 25%, which is quite high.
The fund is over 5 years old, which shows that the fund has successfully been able to tide over various bull and bear cycles while creating alpha for its investors.
The expense ratio of the fund is 0.97% for a direct plan, which is at par with its competitors in the same category.
Additionally, the fund has a moderately high-risk grade, which is in line with its exposure to small-cap and mid-cap stocks.
The fund carries no exit load if it is redeemed or switched before a period of one year, unlike some other funds in the category.
It has a minimum SIP amount of only ₹500, which encourages investors to invest even small amounts periodically, usually monthly. Nifty 500 Index is the benchmark for this particular fund.
The fund has outperformed its benchmark index, in the 5-year spectrum
As stated above, since this is a focused fund, it invests in a total of only 30 securities. Within this, the top 5 securities comprise 42% of the total assets under management.
The fund’s portfolio is skewed towards large-cap and mid-cap stocks, with a small portion of cash to make use for any other investment opportunity.
Equity comprises about 92% of the total AUM, while cash comprises about 8% of the AUM.
A drill-down analysis of the equity sector allocation reflects that the financial sector is a heavy weight for this fund. Approximately 40% of the total assets under management are invested in the financial service sector. Energy follows the lead with an approximate investment of 17% of the AUM.
Some of the top stock holdings of this fund are- HDFC Bank (9.5%), SBI (9.2%), ICICI Bank (8.44%), Axis Bank (7.5%) and Bharti Airtel (6.2%) among others.
The fund has been successful in creating wealth for its long-term investors. It is suitable for investors looking for high capital appreciation over a long-term period.
The fund is managed by – Anand Radhakrishnan, Roshi Jain, and Shrikesh Nair.
The fund managers are experienced with vast industry knowledge.
Roshi Jain is an experienced CA and CFA with a total industry experience of 19 years. She has been associated with Franklin Templeton for over 13 years and manages a couple of other schemes as well.
Anand Radhakrishnan is a veteran with almost 25 years of industry experience.
A qualified CFA, Anand is also the Chief Investment Officer of Franklin Equity Business in India. He manages many other schemes offered by Franklin such as Franklin India Technology Fund, Franklin India Multi-Asset Solution Fund, etcetera.
Shrikesh Nair has a total experience of 7 years. He is responsible for undertaking equity research.
Franklin India Focused Equity Fundis available for investment on Groww. Simply log in to your account, choose the fund – Franklin India Focused Equity Fund – make the payment and start your SIP/lumpsum!
Disclaimer: The views expressed here are of the author and do not reflect those of Groww.