Franklin India High Growth Companies Fund: Underperforming of late

ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.

HOW HAS THE FUND PERFORMED?
With a 10-year return of 14.85%, the fund has outperformed the category (12.01%), and the benchmark index (9.12%) by a wide margin.

Growth of Rs 10,000 vis-a-vis category and benchmark

BASIC FACTS
Date of launch: 26 July 2007
Category: Equity
Type: Multi cap
Average AUM: Rs 7,639.44 Crore
Benchmark: NIFTY 500 Index

WHAT IT COSTS
NAVs (As on 4 April 2018)
Growth option: Rs 38
Dividend option: Rs 24
Minimum investment: Rs 5,000
Minimum sip amount: Rs 500
Expense ratio (%): 2.37
Exit load: 1% for redemption within 365 days

FUND MANAGER
Roshi Jain
Tenure: 5 years and 8 months
Education: CFA, ACA AND PGDM

WHERE DOES THE FUND INVEST?

HOW RISKY IS IT?

Wherever not specified, Data as on 28 Feb 2018. Source: Value Research

Should You Buy?
This fund has no particular marketcap bias, but is currently tilted towards large caps. It prefers businesses growing faster than peers, often shifting between companies and sectors based on relative valuations and growth potential. The fund maintains a concentrated portfolio, allowing it to take large positions in its top picks.

Over the past few years, it has focused on high conviction bets to drive outperformance. The fund manager also takes active sector calls, taking large over/underweight positions in sectors relative to its index. It is currently significantly overweight in telecom and financials.

While it had been a consistent outperformer until a few years, the fund’s return profile has dipped in recent years. However, the fund’s track record provides comfort to long-term investors.