Fund of Fortnight

Reason for recommendation-

Franklin India Equity Fund - Direct Plan (Growth)





Franklin India Equity Fund is a multi-cap fund offered by one of the oldest fund houses in India. The fund was launched in the year 1994 and will be completing its 25th year soon. The tenure speaks a lot about the fund. Since its inception, it has generated a return of 17.96 per cent. Therefore every lakh invested in the fund at its launch would have become whooping `62.14 lakh now. In any 5-year time horizon since the launch of the fund, it has better chances of beating its benchmark. The fund has generated an annual rolling return between 10-20 per cent in 5-year period. Going ahead, as the market remains volatile and nervous at its near-term high, it becomes important to remain cautious. Therefore, it is always better to invest in funds that have a maximum allocation to large-cap stocks. The way multi-cap funds score over large-cap funds in current situations is if in case the market goes up for reasons such as pro-growth budget or easing of crude oil further, they have the flexibility to take appropriate position. The fund has currently almost three-quarter of its assets held in large-cap stocks, 17 per cent into mid-cap stocks and remaining in small-cap stocks. In terms of sectors, the fund has larger exposure to automobile and communication compared to its benchmark, which can act as a drag in short -term horizon, however, in the longer run they may be a good bet. The fund has concentrated portfolio as the top five companies form around 30 per cent of total assets. Hence, the fund is best suited to those investors who have long-term investment horizon and are a moderate risk taker.






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