Franklin India Flexi Cap Fund - Spread evenly
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Equity markets are currently trading at attractive valuations from the long-term perspective. In order to capitalise on the opportunity they present, we are looking at the Franklin India Flexi Cap Fund, a Multi-Cap oriented fund that invests across market capitalisations. The fund has around 60-70 per cent of its net assets going into Large-Cap stocks and the rest into Mid- and Small-Cap counters.
Launched in Feb 2005, the fund has generated a CAGR return of 18.06 per cent since then as compared to a return of 13.04 per cent delivered by its benchmark, the S&P CNX 500. However, the fund has had its share of underperformance, particularly in 2007, when it underperformed its benchmark by about six per cent. In 2008 though, it fell in line with its benchmark again. In the last two calendar years, i.e. 2009 and 2010, as well as YTD, it has outperformed both its category average as well as its benchmark.
Since its inception, the fund has been managed by K N Sivasubramanian, who has been with Franklin Templeton Asset Management since 1993, and has over 18 years’ total experience in portfolio management.
Currently, around 71 per cent of the fund’s net assets are invested in Large-Caps, and around 29 per cent are in Mid- and Small-Cap counters. It has a fairly concentrated portfolio, with the top 10 holdings accounting for 51 per cent, and the top three sectors accounting for 53 per cent of its net assets. The fund does not take cash calls, and remains almost fully invested across all time periods.
Investors looking to invest in Multi-Cap funds, with a three to five year time horizon can look at investing in this fund.
| Trailing returns (%) as on 11/11/2011 |
| Time Frames | Fund | Category |
| Year-to-Date | -13.38 | -15.30 |
| 1-Year | -16.62 | -19.08 |
| 3-Year | 25.84 | 23.66 |
| 5-Year | 8.02 | 7.81 |
| Returns up to 1 year are absolute and over 1 year are annualized |
| Top Five Holdings (% of Net Asset as on 31/10/11) |
| ICICI Bank | 9.21% |
| Infosys Technologies | 8.98% |
| Bharti Airtel | 5.84% |
| Reliance Industries | 4.91% |
| HDFC Bank | 4.87% |
| Total of Ten Holdings 51.09% |