Franklin India Bluechip Growth fund - Generating Alpha

With markets turning volatile and investors forced to embrace the increased volatility, a equity fund managed by a fund manager with stock picking skills is of paramount importance for investors seeking long term capital appreciation while outperforming the benchmark index. 

Franklin India Bluechip Growth Fund (FIBG) is one fund which has generated Alpha consistently. The excess return of the investment compared to the return of the benchmark index is nothing but "Alpha". 

Globally mutual funds are struggling to generate Alpha. FIBG fund has been able to generate Alpha to the tune of 2.1 per cent. FIBG fund with AUM of Rs. 6,622 crores and 2.21 as expense ratio is betting on Finance sector for out-performance with 27.5 per cent being the weight-age of the sector in the portfolio. Oil & Gas, Healthcare and IT sector are the other top sectors with 9.1 per cent , 8.2 per cent and 12 per cent allocation respectively. 

The fund has ITC as its top contributor towards alpha along with IndusInd Bank, Yes Bank, Cadila Healthcare and Marico as top picks that have contributed handsomely towards portfolio alpha. 

The fund has generated almost 16.3 per cent over a 1 year period and over a 3 year period the fund has given 19 per cent returns. Over a 5 year period the fund has generated over 11 per cent returns which compares well with the benchmark index at 8.1 per cent.

The fund is predominantly a large cap fund with almost 83.73 per cent being invested in Large cap stocks and 4.85 per cent being allotted to Mid cap stocks.