Franklin India Taxshield MF: Has slipped recently

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 Taxshield Fund


How has the fund performed?
With a 10-year return of 12.08%, the fund has outperformed both the benchmark (7.24) and the category average (9.87%) by a wide margin. The fund has an impressive long-term track record.

As on 9 Oct 2017

Annualised performance (%)
The fund has underperformed its category average over 1- and 3-year periods.

As on 9 Oct 2017

Yearly performance (%)
The fund’s return profile has slipped in recent years.

As on 9 Oct 2017

Basic facts
Date of launch : 10 Apr 1999
Category : Equity
Type : Tax Planning
Average AUM : Rs 3,201.95 cr
Benchmark : Nifty 500 Index


What it costs
NAVS*
Growth option : Rs 528
Dividend option : Rs 46
Minimum investment : Rs 500
Minimum SIP amount : Rs 500
Expense ratio^ (%) : 2.38
Exit load : 0% for redemption within 365 days

*As on 9 Oct 2017
^As on 31 Aug 2017

Fund managers
R. Janakiraman / Lakshmikanth Reddy
Tenure: 1 year and 4 months/ 1 year and 4 months
Education: B.E and PGDM / B.Tech and PGDM

Where does the fund invest?
The fund takes sizeable exposure in its top bets.

How risky is it?
The fund’s risk-return profile has taken a knock recently.

Wherever not specified, data as on 31 Aug 2017. Source: Value Research

Should you buy?
This fund has an impressive long term track record but, of late, its performance has dipped. The fund’s stewardship has changed and so has its approach. It is not being run with any market-cap bias but it remains heavily invested in large-cap stocks. The conservative large-cap focus—a stance carried forward from previous years—is partly the reason for the fund’s underperformance in recent years, compared to more aggressive peers.

The fund still maintains heavy exposure in its top picks, with financials forming a bulk of its larger positions. It has historically had a superior risk-reward profile in its category, but this has been partly eroded with the slip in its returns. However, the new team has proven capabilities to execute the strategy, and is likely to yield results in few years.