Skip to main content

Franklin India Prima Fund

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

Franklin India Prima Fund is one of the first funds launched by a private sector mutual fund in the Indian mutual fund industry. According to the CRISIL Mutual Fund Ranking for the quarter ended September 2013, the fund was ranked CRISIL Fund Rank 2 (good performance) in the small- and mid- cap equity category.

The fund has been ranked within the top 30 percentile (Fund Rank 1 or Fund Rank 2) for the past four quarters. The quarterly average assets under management (AUM) stood at ₹ 769 crore as of September 2013. The fund is being co- managed by R Janakiraman and K N Sivasubramanian.

Investment philosophy

The fund aims to generate mediumto long- term capital appreciation by investing in a diversified portfolio of small- and medium- sized enterprises, which have the potential for higher growth. The fund intends to follow a bottom- up stock picking approach.

Performance

The fund has outperformed its benchmark (CNX 500), additional benchmark ( CNX Midcap) and the category as represented by CRISILAMFI Small & Midcap Fund Performance Index across various time frames. Over the past 10 years, the fund has given annualised return of 18 per cent, compared to its benchmarks 14.09 per cent and additional benchmarks 14.65 per cent.

An investment of ₹ 1,000 since the funds inception on December 1, 1993 would have appreciated to ₹ 33,140 at a compounded annualised growth rate (CAGR) of 19.13 per cent until November 26, 2013. The same amount invested in the benchmark would have grown to ₹ 5,544 at 8.94 per cent CAGR, thereby emphasising the benefit of long- term investing and power of compounding. A monthly investment of ₹ 1,000 over a 10- year period under the systematic investment plan ( SIP) until November 26, 2013 would have grown to about ₹ 2.30 lakh ( on an investment of ₹ 1.2 lakh). Therefore, the SIP investment would have yielded a CAGR of 12.55 per cent. A similar investment in the CNX 500 and CNX Midcap would have grown to ₹ 1.92 lakh at a CAGR of 9.15 per cent and ₹ 1.90 lakh at a CAGR of 8.90 per cent, respectively.

The funds consistent performance is also associated with lower volatility or risk (measured by standard deviation). The funds volatility of 16.74 per cent is less compared to the CNX 500 (21.03 per cent), CNX Midcap (21.50 per cent) and is marginally higher than the category ( 16.60 per cent) over a three- year period.

Market Phase Analysis

The fund has dynamically managed its equity allocation during volatile equity market. Following the sub- prime crisis, as the markets rebounded from April 2009 onwards, the fund increased its equity exposure from 89.78 per cent in March 2009 to 94.50 per cent in December 2010. During the same period, the fund gave 73.46 per cent annualised return compared to CNX 500 s 53.83 per cent and CNX Midcap Indexs 71.87 per cent.

As the market started to fall amid the European crisis, the fund reduced its equity exposure from 97.10 per cent in January 2011 to 89.36 per cent in June 2013. The fund gave a 0.64 per cent annualised return compared to the benchmarks - 4.77 per cent (CNX 500) and - 9.62 (CNX Midcap Index). Thus, the fund has outperformed in both the market phases.

The fund had an average equity exposure of 93 per cent over the past three years ended October 2013.

Portfolio Strategy

As of October this year, 71 per cent of its average equity exposure is in small- and mid- cap stocks and the rest in large- cap stocks over the past three years.

The fund is well diversified at both stock and sector levels, compared to the category.

The fund held 51 stocks in its portfolio (average) compared to 48 of the category over the past three years. During the same period, 15 stocks have been consistently held in the portfolio constituting 46 per cent of the equity portfolio. Superior performance of the fund can be attributed to key stock selections such as Amara Raja Batteries, Pidilite Industries, IPCA Laboratories, IndusInd Bank, Torrent Pharmaceuticals and Shree Cements.

The funds exposure to the top 10 industries had been 74.36 per cent vis- à- vis the categorys 79.35 per cent. Overweight exposure to pharmaceuticals and underweight stance on industrial capital goods and construction have helped the fund outperform the benchmark and the category. These industries represented by CNX Pharma Index, S& P BSE Capital Goods and CNX Realty gave 15.67 per cent, - 16.63 per cent and - 28.97 per cent annualised returns, respectively, compared to 6.96 per cent of the CNX Midcap index over a three- year period ended

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

How EEE and EET Tax affect Retirement Investments

  An important factor while choosing a financial product is its taxation , and for retirement savings, this is even more important as the sums involved are usually life-long savings. Here's a look at the current tax treatment of three major long-term retirement planning products, which are - Employees' Provident Fund (EPF), Public Provident Fund (PPF) and National Pension System (NPS). EPF The tax treatment is EEE, which means your money is exempt from taxes at the time of investment, accumulation and withdrawal. At the time of investment, the tax deduction is under the limit of section 80C of the Income-tax Act , which is currently Rs 1.5 lakh. Partial withdrawals are also tax-free if made after 5 years of continuous service. If withdrawals are made before 5 years of service, 10% tax will be deducted at source. Exceptions have also been provided for transfer of amount and conditions wherein the subscriber is unemployed for more than 2 months or the loss of job was beyond th...
Read more

Inflation Indexed National Savings Securities - Tax Treatment

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   Inflation Indexed Bond - Tax Treatment Tax treatment on interest and principal repayment would be as per the extant taxation provision. The quoting of Permanent Account Number (PAN) mandatory for investment amounting to `50,000 (Rupee fifty thousand) and more. However, following exemptions with regard to PAN requirement will apply: As per Income Tax Rule 114B, any person who does not have a PAN and who enters into any specified transaction shall make a declaration in Form No.60. As per Rule 114C, the requirement of PAN is not applicable to the person who has agriculture income and does not have any other income provided he makes a declaration in Form 61, non-residents as referred to in Section 2(30) of the Income Tax Act, and...
Read more

Change in Fund Manager for some of HSBC Mutual Fund Schemes

Buy Gold Mutual Funds Invest Mutual Funds Online Download Mutual Fund Application Forms Call 0 94 8300 8300 (India) However, this facility is only available to Unit holders who have been assigned a folio number by the AMC.   HSBC Mutual Fund has announced that the below mentioned schemes shall be managed by the new fund managers as stated in the table. The effective date will be July 02, 2012.   Amaresh Mishra 's will be Vice President and Assistant Fund Manager. Having done a Post graduate diploma in Business Management and Bachelor of Chemical Engineering, he has over seven years of experience in Equities and Sales.   Mr. Piyush Harlalka's designation shall be Vice President- Fixed Income. Qualified as a C.A., C.S. and holding M.B.A.( Finance degree), he has over six years of experience in Fund management and ...
Read more

Strategy for loss making stock holding

Some tips for investors who are holding stocks that have eroded value in the recent corrections After a dream bull run over the last four years, the domestic markets are in the grip of a slowdown from the last six months. There have been a couple of pull back rallies but every rally is followed by a correction and the markets are falling to new lows in each correction phase. There is a lot of negative news flowing in from all ends and as a result the markets hit their lowest levels in 2008 recently. Currently, the market sentiments look quite bearish. Rallies in the markets are quite short lasting and most of them end in intraday or at the most in a couple of days. There are selling pressures at every level in the market. Many stocks have come down 40 to 60 percent from their peak levels. Stocks and sectors that led the market rally last year are the worst hit in this correction. For example, stocks in banking, financial services, power, energy and infrastructure have seen much deeper...
Read more

Rs 14,000 Crore worth of tax free bonds coming soon from NHAI , PFC

  NHAI, PFC file prospectuses, coupon rate not yet decided MORE debt investment options have opened up for investors with AAA rated tax-free bonds worth over Rs 14,000 crore lined up. The National Highway Authority of India ( NHAI ) and Power Finance Corporation ( PFC ) are offering Rs 10,000 crore and Rs 4,033.13 crore worth of tax-free bonds, respectively, as per prospectuses filed with the Securities and Exchange Board of India (Sebi). Of a Rs 5,000 crore issue by PFC, Rs 966.87 crore has already been raised through private placement on September 28 and November 1. Tax-free bonds give investors tax-free return on any amount invested. In another kind of bonds, the long-term infrastructure bonds, investments up to Rs 20,000 are tax exempt, that is this cap amount can be deducted from the taxable income. Accordingly, the NHAI prospectus has clarified that only the amount of interest from -and not the actual investment on -its new bonds will be tax-free. "NHAI's publ...
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