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

Mutual Fund Review: Taurus Tax Shield

    Taurus Tax Shield has seen a turnaround in performance since 2007, but still remains a volatile offering… The fund has seen a turnaround in its performance since 2007 and has delivered impressively during market rallies since then. The portfolio is also more diversified. It contained its downfall to an average level in 2008 but is still one of the most volatile offerings in this category. Bold investors can look at this fund.   Strategy The fund manager invests across the market capitalisation and sectors. The selection of stocks is made on the basis of long-term business prospects and value creation. Fund Insight Launched in March 1996, the fund was a laggard with just two annual outperformances. Concentrated stock bets and high exposure to mid and small caps led to it being hit harder during market downturns. The number of stocks in the portfolio never exceeded 20 and it was not rare to see the top 5 holdings account for around 60 per cent of the portfolio. After b...
Read more

AXIS Long Term Equity Fund - The Best Tax Saver Fund for 2016

  AXIS Long Term Equity Fund - Invest Online   History:   The open ended mutual fund was launched on December 21 in the year 2009. It is benchmarked against BSE 200 and managed by the fund manager JINESH GOPANI. Initially the scheme was called as Axis tax saver fund but later it was renamed as Axis long term equity fund with effect from September 2, 2011. Nature of investment: As far as asset allocation is concerned, 97.52% of the stocks are equity and 0.02% is debt based. The primary focus of the fund is to invest in diversified equity stocks that have higher growth potential. Total asset size of the fund is in the tune of 4,996 CRORE as of June 30, 2015. Performance: The performance of the fund for one year, 3 years and 5 years are 23.6%, 29.9% and 19.1 respectively which are far greater than 6.4%, 14% and 5.6% benchmark figures. It has also preformed fairly well against SBI magnum Tax Gain (G) and HDFC tax saver (G). The growth comparison is enumerated below;                        ...
Read more

Health insurance guide - Part I

Insurance, by definition, is morbid. What if I die suddenly? What if my home caught fire? What if I had to undergo expensive medical treatment? What if something that I thought happened only to others befell me? Insurers, who work with large samples, calculate the probability of such an event and, hence, the possibility of them having to pay out a sum of money to mitigate, to the extent possible, the effects of that disaster. However, the possibility of you undergoing some kind of expensive medical treatment during your lifetime is far more likely than you dying suddenly or your house burning down. Given that costs at private healthcare facilities, where you are most likely to land up, is high, and, doubling every four years 10 months or so, the rest of your money life could easily go out of whack if you had to incur such expenses. Just 12 per cent of India's population is covered with some sort of health insurance. Pared to the bone, for a comparatively small price, health insu...
Read more

IDFC Classic Equity Fund

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   IDFC Classic Equity Fund IDFC Classic Equity is a large-cap equity fund which currently has assets under management worth Rs. 158.52 crore. It was launched in August 2005. The fund is benchmarked against the BSE-200 Index. Performance YTD 1-Year 3-Year 5-Year Since Inception IDFC Classic Equity 0.93 26.61 6.30 1.01 11.65 BSE 200 1.52 17.31 6.00 1.99 12.98 All figures in % as on January 31, 2013; Returns above one-year in CAGR terms ...
Read more

10 year NSC launched, all set to give 8.7 per cent

Invest in Mutual Funds Online Download Mutual Fund Application Forms THE government introduced a 10-year National Savings Certificate ( NSC ), which will earn an interest rate of 8.7 per cent per annum. The notification for the launch of the new savings instrument, 10-year National Savings Certificate (IX-Issue), 2011, has been issued, an official statement said. The scheme will come into effect from December 1, it added. Investments in NSC will earn interest at the rate of 8.7 per cent compounded semi-annually, it said, adding that on an investment of Rs 100, the depositor will get Rs 234.35 on maturity of the NSC. There is no upper limit for investment in the certificate, it added. The new scheme will give better returns along with tax benefit to savers. At present, the maturity period of NSC is six years and it qualifies for tax relief for investment up to Rs 1,00,000 under Section 80C. The decision to raise the maturity period of NSC has been taken on the b...
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