Skip to main content

Franklin Build India Fund

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

Franklin Build India

If you are tired of watching the off-putting performance of infrastructure funds, then Franklin Build India may be one to provide you with some hope. While this multi-thematic fund's three-year performance remains uninspiring, the fund has made itself conspicuous in the last one year, beating the broad equity market. The fund managed 17.7% in the last one year.

This is not only better than its benchmark CNX 500 by 5 percentage points but is far superior to the diversified fund category average of 9.5%. Other infrastructure funds managed an average 3%.

Investors who already have exposure to this fund can continue to hold it. If the India growth story were to find traction even a year later, this fund could be among the early beneficiaries, given its exposure to key themes, without taking excessive exposure to specific sectors.

Investors can watch its performance over the next 2-4 quarters before considering any fresh exposure. We have a hold call on this fund at present.

The fund
 Franklin Build India may, on the face of it, seem like an infrastructure fund. But having seen the difficulties of keeping a narrow mandate, Franklin Templeton India wisely chose a much larger investment universe for this fund. The fund will invest in companies benefiting from the various building blocks of the economy; that would means infrastructure, resources, financial services, agriculture and themes that are proxy to social development.

You might think that's pretty much what a diversified fund would invest in. That's true to an extent. In fact, the fund has classified itself as a diversified fund and set itself a broad index – CNX 500 as its benchmark. We would also prefer not to compare the fund merely with other infrastructure funds, given its wider universe.

While it may not be wrong to say this fund's universe is rather diversified, you are unlikely to see this fund take very high exposure to software, consumer themes or those that piggyback on the consumption story. Also, it is likely that this kind of fund would have more intense exposure to infrastructure, energy, engineering or cement sectors than pure diversified funds.

On the other hand, while financial services exposure will be its key theme, it may not go over-board on this theme, the way most diversified funds do.

In all, you might want to see this fund as much more than a regular infrastructure fund but short of being called a fully diversified equity fund. It other words, it will play multiple themes.

Performance
 Franklin Build India's diversified investment universe combined with astute stock picking ensured that it had a memorable 2012 that delivered 40% for the fund. While this was far higher than the 25% return that infrastructure and related theme funds managed, it was still not higher than the diversified equity funds' average of 41%. Clearly, its bias for infrastructure-related themes did keep performance capped.

Interestingly, the fund did a good job of containing declines thus far in 2013, falling only 2.7%. This, despite a third of its assets being held in mid- and small-cap stocks of less than Rs 10,000 crore market capitalization. As a result, its one year return now looks better than many top diversified funds.

While these signs of improvement are encouraging, the fund's three-year record, like most infrastructure theme funds, remains lack luster. Its rolling one-year return since its launch in September 2009 suggests that it beat its benchmark 67% of the times. While that record is decent, it is not sufficient to prove consistency in performance.

Portfolio
 Franklin Build India's portfolio would be an equity stock picker's delight in a growth market. But not all the stocks it picked, valuations often playing a key, delivered well.

While stocks such as JK Lakshmi Cement and MindTree doubled over the course of the last one year, others such as Idea Cellular, Bayer Crop Science and Federal Bank also put up a strong performance and boosted portfolio returns. But stocks such as Amara Raja Batteries or Petronet LNG, failed to impress.

If you see equity markets ticking steadily upward, that would be the time to watch how this fund picks up. That would also be a good time for the fund to build itself a track record.


The fund is managed by Anand Radhakrishnan and Roshi Jain.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Popular posts from this blog

Retirement planning from a long-term perspective

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds     `HOW green was my valley'. This title comes from a movie I had watched many years ago. A little boy's journey into adulthood and the story of a Welsh valley's turn of-the-century descent from pristine paradise to despoiled coal mining.   I thought of the title because it is comparatively reflective of a person's life ­ the glorious years when he is earning and the sun down years when he is not having his regular job and, hence, his living standards comes down. The reason is a combination of things. Inflation of food items, transport, increase in health related costs in the later years of life and increase in expenses in almost all basic amenities of life. In India, the social security system is almost non-existent. In some states, wherever it is available, the scales of benefits are extremely modest...
Read more

LIC's JEEVAN SHIKHAR

  LIC's Jeevan Shikhar is a participating, non-linked, saving cum protection single premium plan wherein the risk cover is ten times of Tabular Single Premium. The proposer will have an option to choose the Maturity Sum Assured. The premium payable shall depend on the chosen amount of Maturity Sum Assured and age at entry of the life assured. This plan also takes care of liquidity need through its loan facility. The plan will be open for sale for a maximum period of 120 days from the date of launch. 1.   BENEFITS   : a) Death Benefit: On death during first five policy years: Before the date of commencement of risk   :   Refund of Single Premium without interest. Single Premium mentioned above shall not include any extra amount if charged under the policy due to underwriting decision and taxes. After the date of commencement of risk   : "Sum Assured on Death" equal to 10 times the tabular single premium shall be payable. On death after completion of five policy years but b...
Read more

CNX Midcap vs BNP Paribas Midcap Fund

BNP Paribas Midcap Fund - Invest Online   Te  performance of BNP Paribas Midcap Fund  – which has across the last 3 years generated superior returns over the benchmark – especially when the markets have gone down the fund has handsomely outperformed the benchmark preserving the capital of the investors. The fund has been able to do this only due to the superior stock selection process ( BMV approach) that is diligently followed at BNPP.   Highlights of BNP Paribas Mid Cap Fund:   Investment Objective : BNP Paribas Mid Cap Fund gives an investor exposure to invest in the various quality midcap stocks. The fund also has some exposure to large as well as small cap stocks.   Investment Approach : BMV ( Quality and scalability of Business →Good Management → Reasonable Valuation ) with Bottom-up stock picking.   Most of the investors are way happier if the fund that they have invested in is a significant Outperformer in tough times than in Good ti...
Read more

Investment Strategy - What is Sector Rotation Theory?

Buy Gold Mutual Funds Invest Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Call 0 94 8300 8300 (India)   The economy goes through cycles : it expands for a few years and then contracts. Study of historical data suggests that different sectors tend to perform well on the stock markets during different stages of the economic cycle. While history never repeats itself exactly, some broad patterns tend to recur. Investors can take advantage of the sector rotation theory to move their money from those sectors that have seen their best times to those that are likely to do well in future.   The person who developed the sector rotation theory is Sam Stovall, chief investment strategist at Standard & Poor's. He developed this theory by studying data on economic cycles going as far back as 1854 provided by the National Bureau of Economic Research ( NBER ) of the US.   When trying to correlate stock-market perfor...
Read more

Rajiv Gandhi Equity Savings Scheme (RGESS) set for launch this week

The finance ministry is set to notify the Rajiv Gandhi Equity Savings Scheme ( RGESS ) this week.   Though Finance Minister PChidambaram had approved on September 21, the scheme announced in this year's Budget, and had said that the revenue department will notify the scheme and the Securities and Exchange Board of India ( Sebi ) would issue relevant circulars within two weeks, it is yet to become operational.   A senior finance ministry official said the revenue department was expected to notify the scheme any day now to attract retail investors to the equity segment.   He added that Sebi was not required to issue any circular for the operationalisation of the scheme and that after the issuance of the revenue department's notification, investors would be able to avail of the benefits of the scheme.   The official accepted that implementation of the scheme had been delayed due to the deliberations on inclusion of mutual funds ( MF ) in it.   ...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now