Franklin India Bluechip Fund: Keep faith given its proven track record

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.

Franklin India Bluechip Fund


How has the fund performed?
With a 10-year return of 15.78%, the fund has lagged the benchmark index (16.13%) and outperformed the category average (14.45%). The fund has outperformed the category average but lagged behind the index over the past decade.

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

Annualised performance (%)
The fund has underperformed across time periods.

As on 6 Nov 2018

Yearly performance (%)
The fund’s return profile has dipped over the past year, but remained healthy in previous years.

As on 6 Nov 2018

BASIC FACTS
Date of launch: 12 Jan 1993
Category: Equity
Type: Large Cap
Average AUM: Rs 7,508.41 crore
Benchmark: Nifty 100 Total return index

WHAT IT COSTS
NAVs *
Growth option: Rs 437.24
Dividend option: Rs 38.87
Minimum investment: Rs 5,000
Minimum SIP amount: Rs 500
Expense ratio** (%): 2.05
Exit load: 1% for redemption within 365 days

*As On 6 Nov 2018
**As On 30 Sep 2018

Fund Manager: Anand Radhakrishnan
Tenure: 11 Years 6 Months
Education: B.TECH, CFA AND PGDM

Where does the fund invest?
The fund takes large positions in its top bets.

How risky is it?
The fund’s risk-return profile has dipped relative to peers in recent years.

Wherever not specified, data as on 30 Sep 2018. Source: Value Research

Should You Buy?
This large-cap fund has a healthy long term performance track record, but has slipped of late. Although not a focused fund, the scheme maintains a compact portfolio with strict emphasis on quality and growth. The focus on quality helps the fund cushion the downside well, although this results in the fund lagging during a market uptick. The fund manager takes large positions in his top bets, resulting in a skew towards the top-end of the portfolio.

The fund’s performance has visibly dipped during the past one year, which has dragged its overall return profile. However, the fund manager’s approach often results in bouts of underperformance while coming good across market cycles. Investors should keep faith for the time being, considering its proven track record.