Press enter to see results or esc to cancel.

Franklin India Prima Plus Fund renamed to Franklin India Equity Fund: Fund Review

Last Updated on

Franklin India Prima Plus Fund has been renamed to Franklin India Equity Fund. Franklin India Equity Fund is ranked among the top 5 in the category of multi-cap funds by Upwardly. The fund gave 18.08% return since its inception in September 1994. It offers diversification across sectors, stocks and market capitalization. Franklin India Equity Fund is suitable for long-term investors. Invest in this fund to build wealth for the long term with a minimum investment horizon of 5 years.

 

Performance

Franklin India Equity Fund is ranked among the top 5 in the category of multi-cap funds by Upwardly. The fund performed better than its benchmark in the long-term. In the short-term, the benchmark and fund’s performance was neck to neck. Also, this fund is ideal for long-term and one shouldn’t look at its performance in the short-term as returns in the short-term can be deceptive.

 

 

Franklin India Equity Fund has beaten its category average in the 5-year by 2 percentage points. The fund has performed better than its benchmark in the 5, and 10-year return by 1-2 percentage points. The fund outperforms its peers in the 10-year return. It is one of the oldest funds in India and has performed consistently since its inception. The fund gave 18.08% return since its inception in September 1994.

 

Fund1 Year Return (%)3 Year Return (%)5 Year Return (%)
Franklin India Equity Fund3%12.1%16.03%
Kotak Standard Multicap Fund7.06%17.1%18.43%
Mirae Asset India Equity Fund8.8%18.25%18.32%
ICICI Prudential Multicap Fund6.6%15.83%16.63%
Parag Parikh Long Term Equity5.81%15.31%16.55%

 

A SIP investment of Rs 5,000 a month in Franklin India Equity Fund started 5 years ago is worth Rs 3.90 lakhs now. A profit of Rs 0.90 lakhs (Rs 3 lakhs investment). If redeemed now, one will not be liable to pay any taxes as gains up to Rs 1 lakh are tax-free.

 

Fund Information

Franklin India Equity Fund can give the fund managers flexibility to invest in the companies of their likings irrespective of the size of the company and can, therefore, generate much higher returns. It aims to manage the market cap allocations based on relative opportunities available. The fund has consistently declared a dividend every year for the last 20 years. It gives you a diversified equity portfolio investing predominantly in large, mid and small-cap stocks.

 

The fund offers synergies of scale and scope. It offers diversification across sectors, stocks and market capitalization. Due to its diversified nature, it offers balanced performance, market resilience and relatively lower volatility. The fund invests 75% of its assets in large caps and the rest in mid and small caps. The manager identifies companies based on a robust business model, competitive advantage, good corporate governance, and high return on equity.

 

The fund has a diversified portfolio with 57 stocks which are actively managed. The top five holding sectors constitute 64.49% of the portfolio. These include financials (26.08%), technology (11.58%), automobile (9.02%), FMCG (8.94%), and construction (8.87%).

Recommendation

Franklin India Equity Fund is suitable for long-term investors. Invest in this fund for an investment horizon of at least 5 years for the investments to give best results. It is ideal for long term goals like retirement, kids’ education. The fund accepts both lump sum and SIP investments. However, investing in this fund through SIP is recommended. Do not look at the fund’s performance in the short-term as short-term returns are deceptive. Invest in this fund with a horizon of at least 5 years.

 

Fund NameFranklin India Equity Fund
Original NameFranklin India Prima Plus
Launch DateSep 29, 1994
AUMRs 11,304 crore
Return (Returns greater than 1 year are annualized)Since Launch: 18.08%
1 Year: 3%
3 Year: 12.1%
5 Year: 16.03%
Expense Ratio1.99%
Fund Category RiskHigh
Investment PlanGrowth
Minimum Investment Horizon5+ years
Minimum InvestmentRs 5,000
Minimum Additional InvestmentRs 1,000
Exit Load1% if withdrawn within 12 months. No exit load if withdrawn after 12 months
Fund ManagerAnand Radhakrishnan
Janakiraman Rengaraju
Srikesh Karunakaran Nair
Please follow and like us:
0